The cryptocurrency market operates in anticipation of the meeting this Wednesday (4) of the Federal Reserve (FED), the central bank of the United States, determined to raise interest rates to fight inflation in the country. Bitcoin (BTC) is up 1.2% in the last 24 hours to $38,918, data from CoinGecko shows. Ethereum (ETH) is holding steady, up 0.1% at $2,836. In Brazil, Bitcoin is down 0.5%, trading at R$194,013, according to the Bitcoin Portal Index (IPB). Major altcoins also operate at slight highs such as Binance Coin (+0.6%), Terra (+2.8%), Cardano (+2%), Polkadot (+1.8%) and Avalanche (+0.3%). %). Dogecoin (DOGE) and Shiba Inu (SHIB) are parked. Solana down 0.3%. “Crypto assets have been losing support regions, which could translate into more bearish moves in the coming days, with altcoins falling at a faster pace than BTC. The next most relevant support is at $35,000, while resistance is in the region between $40,000 and $42,000.” Bitcoin had ended Tuesday in the opposite direction of US exchanges. Both the S&P 500 and Nasdaq 100 were up, while the cryptocurrency remained in negative territory.
The move has caught the attention of traders as cryptocurrencies have followed in the footsteps of equities in recent weeks. Investors take the opportunity to make a profit waiting for the Federal Reserve’s decision, scheduled for 15:00 GMT. The 0.5 percentage point increase in interest rates is priced in by many traders, but the market will look for clues about the pace of monetary tightening in the coming months and the reduction of the Fed’s balance sheet to assess the impact on the level of liquidity. In the geopolitical realm, the highlight this morning is the European Union’s proposal to completely suspend Russian oil imports for the next six months, according to the New York Times. “Bitcoin will continue to be traded as a risky asset until further advances with the Lightning network occur,” Edward Moya, a senior analyst at Oanda, told CoinDesk. “Bitcoin needs a new catalyst, and the advancement of the ‘peer-to-peer’ payments network may be needed to revitalize the ‘crypto bulls’,” he said in reference to investors betting on cryptocurrency gains.
Indeed, analysts and observers say that Bitcoin’s narrow trading range has recently been marked by “boredom.” In April, that range was the narrowest since September 2020, according to Bloomberg. And the digital currency has fluctuated in a band of 5% for the seventh straight session, a lull last seen on January 19. Many say that something exciting needs to happen to bring the crypto market out of its current lethargic state.
The first Goldman Sachs loan guaranteed by Bitcoin was awarded to the Coinbase Global exchange. The Goldman deal “is a first step in recognizing crypto as collateral, which deepens the bridge between the fiat and crypto economies,” Brett Tejpaul, head of Coinbase Institutional, said in an emailed response to Bloomberg. Terms of the loan were not disclosed, but Coinbase had $183 million worth of Bitcoin at the end of 2021, according to the balance sheet. Elon Muskwhich sealed a deal to take Twitter private in a $44 billion takeover, told potential investors it could IPO in less than three years after the purchase, sources told the Wall Street Journal. The MicroStrategy recorded accounting losses related to digital asset depreciation of $170.1 million from January to March, up from $146.6 million in the fourth quarter, according to the analytics software firm’s balance sheet. MicroStrategy had 129,218 bitcoins at the end of March, equivalent to nearly $5 billion at current prices. The Riot Blockchain, one of the largest exchange-traded Bitcoin miners, raised around $10 million in April by selling 250 bitcoins amid expansion plans. In March, the company also sold 200 bitcoins for $9.4 million, according to CoinDesk. MB Digital Assets (MBDA) – a company in the Bitcoin Market ecosystem – made available on Tuesday (3), in partnership with Consorciei, 25,133 new consortium quota tokens (CSCONS02), with a unit value of R$100. Vitor Delduque, director of New Business at the manager, told Valor Investe that the sale of contemplated consortia is interesting for clients who need immediate liquidity. By law, consortium administrators have up to 180 days to make the resource available. The blockchain technology was appointed by Embrapa (Brazilian Agricultural Research Corporation) as one of the foundations for a new Brazilian agriculture, alongside innovations in biotechnology and sustainable production. Algorand is the newest company in the cryptocurrency industry to become a sponsor of the FIFA World Cup, which will be held in November in Qatar. With the agreement, Algoran will be FIFA’s official blockchain platform, according to a statement. Algorand’s native token (ALGO) rose 17% after the news, but lost steam.
Regulation, Cybersecurity and CBDCs
Hester Peirce, U.S. SEC commissioner criticized the agency’s plans to hire 20 people for the crypto industry oversight team. Peirce, known as “Crypto Mom” for her pro-crypto stance, tweeted: “The SEC is a regulatory agency with an enforcement division, not an enforcement agency.” In Brazil, the Federal Police on Tuesday (3) dismantled a criminal organization that promoted a financial pyramid by offering investments in cryptocurrencies. According to a PF note, the deal may have caused a loss of around R$ 15 million to investors. The Rio de Janeiro will host the first edition of the Web Summit outside Europe. The technology event, which is usually held annually in Lisbon, will arrive in the Rio de Janeiro capital between the 1st and 4th of May 2023, according to InfoMoney.
Metaverse, Games and NFTs
The chaos caused on the Ethereum blockchain due to the sale of virtual land in the Otherside metaverse and the collapse of the Solana network for seven hours over the weekend, reignited the debate about the fees and purchase processes faced by investors to carry out transactions or mint new assets, highlight Emily Nicolle and Jialian David Pan. in a Bloomberg newsletter. Solana has indicated it may change its fee structure, which could signal higher costs and reduce the appeal of the Ethereum rival. In addition, many who have purchased “Otherdeeds” (non-fungible tokens representing the deeds to the land) may lose money if they decide to sell them now due to falling prices. Sales of NFTs hit a daily average of about 19,000 this week, down 92% from a peak of about 225,000 in September, according to NonFungible data published by the Wall Street Journal. women’s NFTs that marked their time, such as that of councilor Marielle Franco, murdered in 2018, will be auctioned for donations to NGOs, according to Folha. Manu Cunhas’ illustrations are sold on the Impact Woman NFT platform. Dux, Brazilian blockchain gaming startupsaid that he received the first investment in a Brazilian company made by Animoca Brands, famous for investing in projects such as the play-to-earn game Axie Infinity, according to Exame. The Swiss Dfinity Foundationdeveloper of the Internet Computer blockchain, has filed a lawsuit against Meta for trademark infringement in a US court, claiming that the Facebook owner’s ‘looping’ logo is very reminiscent of Dfinity’s infinity symbol. The Decrypt crypto news site raised $10 million in a funding round and announced its spin-off from the accelerator and incubator ConsenSys Mesh. With the features, Decrypt. now valued at $50 million, plans to beef up the team of reporters and develop a web3-based studio with NFTs and tools for the metaverse.