Bitcoin managed to maintain its pressure on the $108,000 target during the Wall Street opening on May 21. Data from Cointelegraph Markets Pro and TradingView indicate that BTC is moving closer to its daily high range as the US trading session begins. After its record daily close, Bitcoin is getting ready to face off with its all-time high just above $109,000.

Japan’s national debt issues have favored both Bitcoin and gold, with the latter reaching $3,320 per ounce, its highest since May 12. “Japan’s growing debt problem has been an underlying concern for a while, but it is now approaching a critical stage,” commented trading firm QCP Capital.

According to QCP, the recent Bitcoin gains seem to be driven by corporate accumulation, and a breakthrough of all-time highs could reignite retail interest. However, they also warned that “a slowdown in their buying could trigger profit-taking from other market participants and potentially reverse the prevailing uptrend.”

Concerns about the strength of the BTC price trend also arose from the BTCUSD chart. Prominent trader Roman cautioned that Bitcoin’s relative strength index (RSI) now shows three bearish divergences simultaneously on daily timeframes.

Despite the bearish signals, numerous bullish BTC price targets are still in place, with $116,000 being a popular target once all-time highs are breached. Some have even predicted a price of $220,000 or more by 2025. Trader and analyst Aksel Kibar maintains the bull trend “remains intact” this week, with his chart indicating a $137,000 target.

QCP concluded, “Despite relentless macro headwinds including surging bond yields, tariff escalations, and mounting stagflation risks in the US for Q3 and Q4, BTC has demonstrated remarkable resilience over the past month. A breakout to new highs could ignite a fresh wave of FOMO, dragging in sidelined retail capital and pushing prices even higher.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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On January 23, THORChain suspended its THORFi services such as the “Savers and Lending” programs due to financial instability. A 90-day restructuring plan was set in motion to mitigate the issues arising from the unsustainable debt accumulated in these services.

The community-backed plan involves the conversion of debt into equity, more specifically into a newly introduced token named TCY (Thorchain Yield) with a total supply of 200 million units. This implies that lenders and savers will be compensated with TCY tokens instead of bitcoin or ether, effectively transforming their debt claims into equity within the Thorchain ecosystem.

TCY holders will be entitled to a perpetual 10% share of Thorchain’s revenue. “THORChain will convert ~$200M of debt into equity through a new token that will receive 10% of network revenue in perpetuity,” stated the THORChain team.

As per the proposal, 200 million TCY tokens will be minted and distributed at a rate of 1 TCY per dollar of defaulted debt. The core team plans to establish a RUNE/TCY liquidity pool with $500,000 liquidity at $0.1 per TCY, backed by the $5 million from the treasury. This implies that for those with funds in Thorchain’s lending and savings programs (ThorFi), their assets will be converted into TCY rather than being repaid in the original asset. However, the timeline for recovery remains uncertain.

Despite the restructuring initiatives and proposal 6, RUNE’s price plunged an additional 35% over the past week amidst a broader altcoin sell-off, dropping from $2 to $1.3, according to The Block’s price page. The token has lost more than 70% of its value in the past 30 days. Despite these challenges, the network managed to maintain swap volume, processing $270 million in the last 24 hours.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. This article is for informational purposes only and should not be taken as financial, legal, tax, or investment advice.

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