Like Buying Bitcoin at $100 - Don’t MISS THIS!

Ever since ChatGPT blew into our lives less than three years ago, AI-focused cryptos have been the subject of feverish speculation. There’s no shortage of them either, and some have merit, some are at least trying to do something interesting and most are, of course, absolute rubbish.

But one project in particular is starting to emerge as perhaps the leading blue chip in the crypto/AI space and many believe it could even become the ‘Bitcoin of AI’. That’s a bold claim, but is there any truth to it, beyond the similar tokenomics? Or is this just another AI crypto with a loud, cultish following, full of sound and fury and signifying nothing? Yes folks, it's time to take another look at Bittensor.

So, in today’s video, we do just that. It’s been a few months since we last covered Bittensor and there’s a lot to bring you up to speed on. From Dynamic TAO to the lowdown with what’s happening in Bittensor’s subnet ecosystem and what’s coming next for the project, we execute a classic Coin Bureau deep dive into what could perhaps be one of the big winners of this cycle.

You can watch that video here.

📈 Crypto Market Forecast 📈

The ideal macro backdrop for risk assets like cryptocurrencies is one where inflation is falling, the economy is weak but not recessionary, and where there’s minimal uncertainty around things like tariffs. The first results in the creation of new liquidity, while the last makes it easier for this new liquidity to flow further out along the risk spectrum. This is the backdrop that’s slowly forming.

In recent months, we’ve seen inflation repeatedly come in lower than expected. It’s possible that the CPI and PPI for May will also come in lower than expected, or at least lower than the previous print, confirming a continued downtrend. As noted by MarketWatch’s handy Economic Calendar, the CPI for May will be published this Wednesday, and the PPI will be published this Thursday.

When it comes to the economy, unemployment and jobs data are what investors watch the closest, as well as the Fed. As you may have heard, much of this economic data for May came in worse than expected last week. Some of you might recall that a deterioration in economic data was what caused the Fed to cut last summer, and what fueled the market rally last fall.

Not surprisingly, the weaker than expected economic data has investors doubling down on the likelihood of Fed cuts in the coming months. What is surprising though is that the Fed seems to be refusing to budge, even as central banks around the world continue to ease. Thankfully, the Fed is not the only entity that can create liquidity in the economy. There’s also the Treasury.

As Treasury Secretary Scott Bessent recently noted, the Treasury is looking to remove the Supplementary Leverage Ratio (SLR) for banks. In short, the SLR requires banks to hold some amount of capital relative to their bond holdings. By removing this requirement, banks could and likely will buy more US bonds, which has the same effect on interest rates as QE from the Fed.

The Treasury is hoping to remove the SLR over the summer, with reports suggesting that this could happen sooner rather than later. This makes sense given that the Trump administration is in the process of pushing its spending bill through Congress. The moment that bill is approved, the Treasury will need to issue hundreds of billions in bonds, and it will need lots of buyers.

If you’ve been keeping up with the main channel, you’ll know we’ve repeatedly highlighted the fact that stablecoins could and likely will play a significant role in helping fund the US government. That’s because stablecoins are primarily backed by US bonds. And if you’ve been keeping up with the news, you’ll know that stablecoin bills are also working their way through Congress.

As with the Treasury’s SLR exemption, it looks like stablecoin regulations could come sooner rather than later. Both chambers of Congress seem to be on the same page about stablecoin regulations, and are just in the process of making minor amendments they’re all happy with. With some luck, a stablecoin bill will be passed by the end of the month, if not sooner.

Whereas the SLR exemption will result in more purchases of long-term bonds, stablecoin regulations will result in more purchases of short-term bonds. At the same time, you’ll have the Treasury conducting bond buybacks to further boost liquidity and lower interest rates. Notably, the Treasury could start using the proceeds from short-term bond sales to buy long-term bonds.

In either case, the outcome is the same - we appear to be headed for an environment that’s positive for liquidity over the summer, regardless of whether the Fed cuts rates or does QE. But again, a continued decline in inflation and further weakening of jobs and employment data should push the Fed to stimulate, or at least foreshadow more easing at its next meeting.

The only thing missing is more certainty around things like tariffs. Thankfully, there were some positive developments on that front last week, with the White House calling for countries to submit their final offers to minimize their tariffs, and Trump calling Xi to discuss trade. The final tariffs will reportedly be announced on July 8th, but it goes without saying that this could change.

The good news is that there is enormous pressure on the Trump administration to get the tariffs sorted ASAP, and not because of the markets per se. The Fed has made it clear that it won’t budge until the tariffs are finalized and they can figure out what it all means for the economy. With luck, most of this uncertainty will be sorted by the Fed’s next meeting, but don’t bet on it.

💧 Dark Pools 💧

Over the past few weeks, popular Hyperliquid trader James Wynn made a staggering loss of roughly $30 million as his high leverage long and short positions were liquidated one after the other in an almost bizarrely comical fashion. When Wynn opens a long position, the markets dump to his liquidation price. When he opens a short position, the markets pump to his liquidation price.

While some attributed Wynn’s losses to being a skill issue, others (and Wynn himself) blamed it on a coordinated attack by “cabal traders” in the crypto markets. Regardless of what the truth may be, Wynn’s assertion about being hunted by a cabal has generated discussion on the importance of onchain privacy for institutions and large traders like Wynn.

Notably, Binance founder Changpeng Zhao (CZ) highlighted the need for an on-chain dark pool-style perps DEX in web3. For context, dark pools are a TradFi concept. They are private markets that allow institutions to handle large trades without market impact. Orders placed in dark pools (as well as details like price, size and volume) are not revealed until after trade execution. In case you’re wondering, the fundamental difference between dark pools and OTC markets is the mechanism of trade execution. In OTC markets, the trades are executed between two parties privately, with details being passed through a broker or dealer. There is often negotiation involved.

In the case of dark pools, the trade execution is automated through a centralised venue/platform whose matching engines may close trades at midpoint prices between asks and bids. In the TradFi markets, they’ve been around since the early 1980s, after the SEC approved alternative trading systems (ATSs). Notably, Bloomberg reports that as of January 2025 roughly 50% of the trade volume for US stocks occurs through dark pools. CZ also notes that the order books of dark pools are often 10 times larger than their standard counterparts.

While there’s clear demand for dark pools, the problem with the existing structure in TradFi is that the inherent centralisation often results in shady backdoor deals between the venue and high frequency traders. CZ claims that smart contract execution and privacy-preserving tech like ZK proofs can help avoid most of the problems seen in TradFi dark pools, while also helping traders like Wynn confidently trade large positions without fearing liquidations through coordinated market manipulation. This also includes helping traders avoid MEV attacks and copy traders. With more institutional traders actively entering the crypto market, the need for onchain dark pools has never been higher.

Off the top of our head, we can think of a few crypto primitives that seem suitable for introducing dark pools in web3. For instance, layer 1 chains like Seismic allow for encryption at the app-level instead of just the wallet level. By using trusted execution environments (TEEs) at its core, it allows for developers to create applications with encrypted global state (private data) and an encrypted memory access (shields data during processes like bids or transfers). This seems perfect for building dark pools in web3.

That said, institutional traders also need verifiable compliance to satisfy regulators. To that end, tech like privacy pools (proposed by Vitalik) can help create legally compliant dark pools in web3. For instance, a Web3 protocol could use a privacy pool (think Tornado Cash, but with compliance features) to hold assets. Orders are then submitted as encrypted data or ZK proofs. When a counterparty submits a matching order, a decentralized matching engine (via ZKPs) pairs them, executes the trade, and settles via the pool. Layer 2 solutions like ZK-rollups could batch and process trades privately, posting only a compressed, verified result to the blockchain.

It’s important to note here that this is just conceptual conjecture on our part – the technical feasibility of these being used to create dark pools for web3 is still up for debate. After all, encrypting and matching orders on-chain is computationally intensive, not to mention the potential liquidity constraints. That said, there are already a few projects attempting to build the first iteration of dark pool-style DEXs. Some of the more notable ones include Silhouette (Hyperliquid), Renegade (Arbitrum), Hibachi (Arbitrum/Base), and Penumbra (Cosmos).

While it’s too soon to tell which of these end up becoming the Uniswap of dark pool-style DEXs, it’s certainly an interesting niche to watch develop.

🔥 Hot Deal Of The Week 🔥

The markets appear to be taking a bit of a breather - which some of the most savvy investors would say is an ideal time to explore what coins you would like to add to your portfolio.

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🔮 Video Pipeline 🔮

* Bitcoin Conference 2025: Recap & analysis of the biggest news and predictions!
* SharpLink Transformation: How a struggling company was transformed by Ethereum?
* Galaxy Report: This you need to know!
* Axiom Ultimate Guide: How to trade memecoins on the best trading terminal?
* Who Controls Bitcoin? This will surprise you!
* JP Morgan: Their attitudes to Bitcoin and how it’s bullish?
* Bretton Woods: How our fiat financial system came about?

🏆 What's New at CoinBureau.com This Week? 🏆

* A Beginner's Guide to Buying Pi Coin
* Discover The Top 10 Crypto Wallets In 2025
* Automated Market Makers Explained: Exploring Their Impact on Markets
* Top Android Crypto Wallets to Secure Your Cryptocurrency In 2025
* Comparing The 10 Best Solana Wallets In 2025 (Easy To Set Up And User-Friendly)

📖 Quote of the Week 📖

The market may be frustrating, maybe even a little boring. But, it’s all part of the process. Keep stacking those sats and it will soon all make sense.

"Success is the sum of small efforts, repeated day in and day out." - Robert Collier

Team Coin Bureau

Disclosure: Authors may own cryptoassets named in this newsletter. These are unqualified opinions, and a Coin Bureau newsletter, is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor.