Crypto morning: Bitcoin (BTC) retreats on lower risk appetite, Ethereum (ETH) drops below $3K and FED prepares bitter medicine

Charlie Taylor


The cryptocurrency market accelerates losses after a long holiday with low volume. In the Asia session, Bitcoin (BTC) even dropped to its lowest level in a month and is trading down 3.6% in the last 24 hours at $39,008, according to data from CoinGecko. Ethereum (ETH) is down 4.5% to $2,910. In Brazil, Bitcoin lost 3.5%, quoted at R$ 184,832, according to the Bitcoin Portal Index (IPB). With no new factors for the time being, investors continue to keep an eye on global inflation, the impact of sanctions on Russia and monetary tightening in the United States. American stock markets were closed on Good Friday. On Thursday, the Nasdaq was down more than 2%, while the S&P 500 ended down 1.2%. For Goldman Sachs, the Federal Reserve faces the difficult task of raising interest rates to curb prices without causing a recession in the US economy. The bank sees a 35% probability that US GDP will shrink over the next two years, according to a report.

Next level

Interestingly, trading volumes in the crypto market have dropped as interest rates have started to rise, and now experts are trying to decipher how the monetary tightening will impact digital assets. Technical patterns suggest that despite Bitcoin’s recent dip, the biggest cryptocurrency is still not close to an “oversold read,” 22V Research analyst John Roque wrote in a note to Bloomberg. “We still believe it could reach the $30,000 level.” Joe DiPasquale, CEO of fund manager BitBull, is pessimistic about the performance of cryptocurrencies this week, noting that the macro scenario still does not favor Bitcoin, which could drop to around $37,000, he told CoinDesk. “For any bullish move, BTC will need to consolidate around $42K next week – an unlikely scenario in the absence of major news or catalysts.” In fact, on the geopolitical terrain the outlook is not encouraging. On Monday, Russia launched missiles at the western Ukrainian city of Lviv in an attack that reportedly killed at least six people, officials told the New York Times.

twitter in sight

Dogecoin, a token that often follows in the footsteps of Elon Musk, lost 6.2%. After making an unsolicited offer via Twitter, Tesla’s CEO this weekend criticized the platform’s board, which seeks to defend itself against the takeover. Jack Dorsey, the founder of Twitter, echoed the criticism and said the board is “consistently the company’s problem,” according to Forbes. The main altcoins also operate in the negative this Monday (18) as Binance Coin (-3.2%), XRP (-5.6%), Solana (-5.4%), Cardano (-6.6% ), Earth (-3.8%), Avalanche (-6%), Polkadot (-7%) and Shiba Inu (6.8%), according to data from CoinGecko.

Other highlights

The Central Receivables Register (CERC) plans to ask the CVM later this month for authorization to act as a clearinghouse and asset depository, according to Valor. Cerc is negotiating with investors to raise between US$ 100 million and US$ 200 million. Last year, 2TM, the holding company that controls the Bitcoin Market, led a BRL 90 million investment in the company. The partners Ralph Sapoznik and Flávio Hernandez set up Cripto Hub BR to serve as a kind of forum for discussion and exchange of experiences for executives in the cryptocurrency world, according to Valor. The plan is that, in the future, there will be rounds of entry of new companies in which older companies will have priority to invest. Jordan Belfortexecutive played by Leonardo DiCaprio in “The Wolf of Wall Street”, now invests in NFT startups and blockchain debate, but still falls for scams involving cryptocurrencies, highlights a report in the New York Times. A group of Monero enthusiastsapparently fed up with centralized exchanges, plans a “bank run” on social media for withdrawals of XMR tokens this Monday (18). The 2TM is negotiating the creation of a crypto asset-focused asset manager using quantitative methods, people familiar with the matter told Bloomberg. The manager would be created in partnership with Giant Steps, the largest quantitative manager in Latin America. Owner of 60% of unicorns and with US$ 8 billion in investments in Latin America, SoftBank will increase the volume of resources, change the structure and command of the fund destined for the region. According to Estadão, the Brazilian Alex Szapiro and the Mexican Juan Franck become managing partners of the operation. Chris Dixon is named by Forbes as the biggest venture capital investor of 2022. Newcomer to Andreessen Horowitz in 2013, Dixon had carte blanche to explore the unusual: virtual reality, 3D printing and drones. But it was an initial bet on cryptocurrency exchange Coinbase that defined his career. Since October 2021, nearly 20 million carbon offsets – items used by companies to offset greenhouse-causing emissions – were turned into digital tokens. But experts question the impact of tokenizing carbon credits to limit global warming, according to the Financial Times.

Regulation and CBDCs

Germany overthrows the city-state Singapore and has become the friendliest country for the cryptocurrency market, according to the newest edition of the Coincub Global Crypto Ranking report published last week. In the study, referring to the first quarter of 2022, Brazil appears only in 42nd place, after occupying the 11th position in the last quarter of 2021. The reason for the downgrade was attributed to a fake news that spread last year: that Brazil would have considered making Bitcoin legal tender. Crypto company CEOs attendees at Paris Blockchain Week told CNBC that regulators are starting to take a more positive approach towards cryptocurrencies, but in the opinion of Arthur Breitman, co-founder of the Tezos blockchain protocol, they will “naturally have a conservative bias” on the sector. A year at the helm of the SEC from the USA, Gary Gensler has troubled retail investors and crypto enthusiasts alike by criticizing the “gamification” of trading and the proliferation of unregistered tokens. In an interview with the New York Times, Gensler said that he does not consider cryptocurrencies to be as “innovative” and that many of the existing rules are sufficient to regulate the industry.

Safety

Beanstalk Farms, an Ethereum-based stablecoin protocol, suffered a $182 million breach on Sunday, according to CoinDesk. The hack was alerted on Twitter by blockchain security firm PeckShield, according to which the attacker took at least $80 million worth of cryptocurrencies, although the protocol’s losses were much greater. a brazilian businessman unknowingly entered the cryptocurrency market and discovered it the worst way possible: he had an account opened by swindlers who used his data on Binance when trying to buy a car. Since October 2021, the entrepreneur has been trying to solve the problem with the broker’s lawyers and recover the R$ 230,000 lost, according to the Bitcoin Portal. The Ethereum wallet identified by the US government as part of the operations of the North Korean hacker group Lazarus remains active. A report from CoinDesk shows that despite US sanctions, the same address that hacked into the Axie Infinity game continues to send ETH to accounts that “launder” the stolen amounts via Tornado Cash. Russian authorities arrested on Friday (15) Dmitry Pavlov, suspected of founding Hydra, the largest market for illicit products on the Internet. The information was published by various Russian media outlets and the CoinMarketCap news portal, citing information from the local government.

Metaverse, Games and NFTs

Large companies and offices from different segments begin to rehearse the use of the so-called metaverse. As there is still no specific legislation to regulate this new technology, labor lawyers, specialists in trademarks and patents and in the tax area have anticipated probable “risks” for preventive measures to avoid lawsuits, according to Valor. fan tokens began to be traded on major cryptocurrency exchanges about three years ago, promising an alternative to financing clubs and greater decision-making power for fans, but many say they are disappointed with the devaluation of prices, according to a Bloomberg report.

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