Bitcoin and other cryptocurrencies are seeing a surge in use during economic turmoil according to a new report by the Bank for International Settlements. The study shows crypto is gaining traction in countries facing high inflation costly money transfers or strict rules on moving money across borders. People are turning to Bitcoin and stablecoins like USDT and USDC as safer faster and cheaper alternatives when traditional financial systems fail.

The report highlights a sharp rise in cross-border crypto payments. Data shows these flows jumped from under $7 billion in early 2017 to over $800 billion by late 2021 before dipping during the crypto downturn. As of mid-2024 volumes have rebounded to around $600 billion. While Bitcoin once dominated 80 percent of these transactions its share now sits below 25% as users shift toward stablecoins for practical reasons.

Crypto use often spikes when governments impose capital controls or global financial stress increases. The report confirms that Bitcoin is no longer just an investment it is a critical tool in times of financial uncertainty.

BIS Report

Bitcoin is showing signs of deflation as the total supply excluding holdings by institutional players like Strategy₿ continues to decrease. According to Ki Young Ju, CEO and Co-founder of CryptoQuant, Bitcoin’s deflationary trend is becoming more prominent due to Strategy₿’s significant holding of over 555,000 BTC which is being kept off the market with no intention of selling.

The current buying pace of BTC by institutional investors such as MSTR outpaces the rate at which new Bitcoin is mined. This has led to an annual deflation rate of approximately -2.23%. In addition, other major institutional holders are likely contributing to this growing deflationary pressure.

With a shrinking supply of Bitcoin and increasing demand from institutional investors, this deflationary trend could have a significant impact on the cryptocurrency market. These developments are seen as bullish for Bitcoin in the long run.

Cathie Wood CEO of ARK Invest has confidently stated that Bitcoin is on track to reach a price target of $700,000 or more in the next few years. Speaking on CNBC’s Squawk Box, Wood emphasized ARK’s prediction that Bitcoin could rise by 580% from its current value by 2030. She mentioned that the base case for Bitcoin stands between $700,000 and $750,000 with the bullish case pushing it as high as $1.5 million.

Wood pointed to three key factors driving this price surge. These include Bitcoin’s growing market share as a store of value in competition with gold the increasing institutional interest and emerging market use cases. She noted that institutions are just beginning to explore Bitcoin and that millions more coins will be minted.

Wood also discussed the end of the US recession highlighting productivity gains spurred by artificial intelligence. She believes the economy will see a period of growth following the uncertainties around tariffs and rising inflation will remain under control.

Source

Goldman Sachs has significantly increased its exposure to Bitcoin by boosting its stake in BlackRock’s iShares Bitcoin Trust (IBIT) by 28% now holding 30.8 million shares worth over $1.4 billion. This growth makes Goldman the largest institutional holder of IBIT according to the latest SEC filing reported by MacroScope.

The bank’s total exposure to spot Bitcoin ETFs remains steady with no major change to its position in Fidelity’s Bitcoin fund FBTC. Goldman previously held over $1.5 billion in US Bitcoin ETFs and the latest disclosure suggests stronger confidence in Bitcoin’s long-term performance. The removal of earlier options contracts tied to IBIT and FBTC signals a shift toward direct holdings rather than hedged strategies.

Since launching in January IBIT has attracted more than $44 billion in net inflows and currently manages about $62.8 billion in assets. The ETF gained $1.04 on Friday closing at $58.66 highlighting continued investor interest and momentum in the crypto market.

SEC Filing

In a letter to the Southern District of New York (SDNY) filed today, the prosecutors in the Samourai Wallet case stated that they did not withhold exculpatory evidence and petitioned the judge for the case to deny the defense’s request for a hearing to discuss the late disclosure of key information that prosecutors had obtained from FinCEN almost two years ago.

Earlier in the week, the defense stated in a letter that they’d learned that FinCEN had “strongly suggested” that Samourai Wallet was not acting as a money transmitting business due to the noncustodial nature of the product in a discussion between certain FinCEN members (more on these members two sections down) and the…

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Matador Technologies Inc. (“Matador” or the “Company”) (TSXV: MATA, OTCQB: MATAF), a Bitcoin-focused tech and investment company, just announced a non-brokered private placement of up to 5,454,546 units priced at $0.55 each. The total amount Matador expects to raise is up to C$3,000,000 in gross proceeds.

The funds raised will be allocated into three equal parts. One-third will be used to buy Bitcoin, which lines up with the company’s continued interest adding to their Bitcoin reserves. Another third will go toward expanding their gold acquisition plans and growing the Grammies business initiative. The final third will cover general corporate needs—things like operations,…

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Hut 8 Corp. (Nasdaq | TSX: HUT) reported a Q1 2025 net loss of $134.3 million, marking a turbulent start to the year as the company executes a bold strategy to become a fully integrated energy infrastructure platform. Quarterly revenue came in at $21.8 million, down from $51.7 million year-over-year, while Adjusted EBITDA was reported at ($117.7) million.

Today we announced our results for Q1 2025, a period of deliberate investment designed to unlock the potential of our development flywheel.

Highlights

– Deployed our upgraded ASIC fleet to end the quarter with 9.3 EH/s at approximately 20 J/TH

– Launched @AmericanBTC to… pic.twitter.com/JoEbWIuMhd

— Hut 8 (@Hut8Corp) May 8, 2025 … Read more on BitcoinMagazine