Crypto Morning: Bitcoin (BTC) Returns to $29K, Falling After Stock Markets Rise

Charlie Taylor

The cryptocurrency market remains on a seesaw, waiting for a catalyst to set a course this winter of digital currencies. Bitcoin (BTC) is down 3.8% over the past 24 hours at $29,319, data from CoinGecko shows. Ethereum (ETH) is down 4.7%, trading at $1,971. In Brazil, Bitcoin drops 4.4% to R$142,232, according to the Bitcoin Portal Index (IPB). Interestingly, cryptocurrencies did not follow US stock indexes throughout Monday, despite early gains in the Asian session. The S&P 500 closed up 1.8%, the Dow Jones rose 1.9% and the Nasdaq rose 1.5%, with investors a little more optimistic about the prospects for consumption in the United States. “We don’t have swings [esta semana], we haven’t had a stablecoin losing $48 billion and we haven’t had a presidential executive order,” Mark Connors, head of research at 3iQ Digital Asset, told CoinDesk. For him, the performance of the crypto market will remain uncertain until the release of the US consumer inflation report in early June. Cryptocurrency investors indeed appear to have slammed on the brakes. The total under management in funds investing in crypto assets fell to $38 billion, the lowest level since July 2021, according to a report from CoinShares. For the week ended May 20, digital asset investment products recorded outflows of $141 million. Bitcoin funds were the hardest hit, with withdrawals of $154 million in the period.

Risk alert

The Seoul Metropolitan Police seeks to freeze Luna Foundation Guard’s assets following the collapse of the TerraUSD (UST) stablecoin, according to KBS newspaper. Several cryptocurrency exchanges have been instructed to prevent LFG from making withdrawals. It is not known which brokers received the order or if they complied with the measure. A Financial Times report revealed that weeks before the collapse, Binance promoted Terra’s Anchor lending program, which attracted many investors to UST and LUNA. On April 6, the exchange described the tokens on Telegram as “a safe and happy opportunity” to earn 20% returns, without warning of the risks, according to the paper. In response to the FT, Binance said it is re-evaluating campaigns for projects like LUNA before they are promoted. In Davos, the managing director of the International Monetary Fund, Kristalina Georgieva, made a clear case for the potential of crypto assets, despite the recent turmoil, according to Bloomberg. The crypto world “offers all of us faster service, much lower costs and more inclusiveness,” she said, highlighting the need to identify risks among assets. According to Georgieva, it is the responsibility of regulators to provide protection and information to educate investors. Gustavo Loyola, former director of the Central Bank, agrees. In an interview with E-Investidor, he defended a regulation that prevents the use of cryptocurrencies in financial crimes and offers “greater transparency about negotiations”.

melted

The melting of the Terra project ecosystem can already be considered one of the great milestones in the history of cryptocurrencies. But at least five assets previously considered promising registered a devaluation of more than 90% until Monday (23) in relation to the maximum: Internet Computer (ICP), Filecoin (FIL), EOS, dYdX (DYDX) and LooksRare (LOOKS) , according to data from CoinGecko and CoinMarketCap. The main altcoins operate in the red this Tuesday (24) as Binance Coin (-0.2%), XRP (-3.6%), Cardano (-5.1%), Solana (-6.2%) , Dogecoin (-3.8%), Polkadot (-3.2%), Avalanche (-8.3%) and Shiba Inu (-3.6%), show data from CoinGecko.

Other highlights

Video game retailer GameStop launched a wallet that will allow the storage, sending and receiving of cryptocurrencies and non-fungible tokens between various crypto applications. It will support NFT trading via GameStop’s upcoming NFT marketplace launch, which is expected to begin operations in 2022.

The controversial French brand Balenciaga held its Spring 2023 fashion show on the floor of the New York Stock Exchange on Sunday, amid plans to start accepting Bitcoin and Ethereum in online purchases and some brick-and-mortar stores, according to the Wall Street Journal.

The Chinese Blockchain-based Service Network (BSN), which is funded by the Chinese government, launches open-source blockchains on the international market in August. The Spartan Network tool will allow access to networks without customers being aware of the technology and with a strong element of interoperability between them, a BSN spokesperson told CNBC. As cryptocurrencies are banned in the country, the networks will not have financial tokens.

Defense firm Lockheed Martin and the Filecoin Foundation could soon make an open-source blockchain network accessible in space, according to an announcement at an event organized on Monday by Filecoin on the sidelines of the World Economic Forum in Davos, CoinDesk reported.

The Sumitomo Mitsui Trust plans to open a company this year to provide digital asset custody services to institutional investors, a step it sees as crucial in building infrastructure to improve its position in the industry, according to Nikkei Asia.

Regulation, Cybersecurity and CBDCs

in injunction, Judge Maria da Penha Nobre Mauro, from the 5th Business Court of the Capital of the Court of Justice of Rio de Janeiro (TJRJ), determined the suspension for 180 days of all actions and debt executions by GAS Consultoria, a company owned by Glaidson Acácio dos Santos, the ‘”Pharaoh of Bitcoins”. The company has 30 days to present a judicial recovery plan, according to Agência Brasil.

In response to a Federal Reserve study, Wall Street banks argue that the US government should delay the launch of a digital dollar due to the risk of draining hundreds of billions of the financial system. A US central bank digital currency, or CBDC, would be a direct competitor to private bank deposits, which could reduce the supply of credit to businesses and households, according to the American Bankers Association and the Bank Policy Institute.

For the European Central Bankcrypto asset links with banks pose a threat to the financial system, but the institution plans to launch a prototype of the digital euro by the end of 2023, according to the Financial Times.

Twelve percent of adults in the US owned cryptocurrencies in 2021, according to a Federal Reserve study. The first annual survey of 11,000 people shows that Americans have little interest in crypto as a currency and are largely investors, according to CoinDesk. Only 3% of respondents had made payments or sent crypto in the previous year, while 11% had investments in these assets.

the ECB also released its research on cryptocurrencies. An average of 10% of households in the eurozone own cryptocurrencies, with 6% in France and 14% in the Netherlands, for example, according to Reuters.

Metaverse, Games and NFTs

Enthusiastic Magistrates of the Metaverse believe that the new technology could be an option for virtual audiences, highlights a report by Folha. Technology already allows opening the doors of the Judiciary to a wider audience, through lectures and visits.

The Mothers of the See NGO put up for sale a non-fungible token with a photo of Fabiana Esperidião da Silva, who disappeared in 1995 in São Paulo, for the most expensive price allowed on OpenSea: more than R$900 quadrillion, according to Veja. For this price, the expectation is not to sell the NFT, but to warn about the “immeasurable” value of the lives of missing children in Brazil.

The third season of the series Love, Death + Robots premiered last Friday (20) on Netflix and brought a surprise to crypto enthusiasts: a hunt for NFTs hidden in the production universe, which can be redeemed through QR codes spread both in the digital and physical world.

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