The sell-off in global equity markets continues to hit cryptocurrencies, pushing Bitcoin (BTC) to its lowest since January. In the last 24 hours, the biggest cryptocurrency is down 3.3% to $33,485, according to data from CoinGecko. Ethereum (ETH) is down 4.4% to trade at $2,442. In Brazil, Bitcoin retreats 2.9%, to R$ 171,996, according to the Bitcoin Portal Index (IPB). The cryptocurrency market was buzzing over the weekend, with $112 billion traded in a 24-hour period, according to CoinMarketCap. The global capitalization of cryptocurrencies is now $1.59 trillion. In Asia, Bitcoin even dropped as low as $33,266, testing the January low of $32,951. If it dips below that level, it would be the lowest since July last year, Reuters points out. “I think everything in crypto is still classified as a risky asset, and similar to what we saw with Nasdaq, most cryptocurrencies are taking a hit,” said Matt Dibb, COO of Singapore-based cryptocurrency platform Stack Funds. .
Correlation under debate
Part of the investors preparing for more turmoil ahead migrate to so-called inverse funds, which offer the opportunity to bet on the fall of stocks or indices. Activity in these funds has recently reached the highest level in a decade, according to data from Jason Goepfert, founder of Sundial Capital Research. In an interview with Portal do Bitcoin, André Franco, head of research at Mercado Bitcoin, says that, despite the extreme correlation between BTC and the risk market at the moment, history shows that cryptocurrency “is a great diversifier over longer periods of time.” ”. Luiza Peruffo, an associate professor at the Federal University of Rio Grande do Sul with a specialization in international monetary policy, says that the fall in BTC in the context of rising interest rates in the US “reminds us that, at best, Bitcoin is an asset financial as any other” and that the international monetary and financial system is still centered on the American currency. Major altcoins are trading in negative territory on Monday as Binance Coin (-3.7%), XRP (-4.9%), Solana (-5.7%), Cardano (-7.8%), Dogecoin (-4.1%), Polkadot (-9.8%), Avalanche (-8%) and Shiba Inu (-9.4%), according to data from CoinGecko. After plummeting 10% on Sunday (8), LUNA, the native token of the Terra blockchain, has lost 5.8% in the last 24 hours. The drop is driven by fears that TerraUSD (UST), the network’s stablecoin, could lose its backing with the dollar, which happened for a brief moment on Saturday. To defend parity, Luna Foundation Guard will lend $1.5 billion in BTC and UST to trading firms, according to a tweet from LFG. ApeCoin is down 6.5%. Token investors are considering keeping the asset in the wallet for a period in exchange for more ApeCoins in the future to support the Bored Apes cryptocurrency, according to Bloomberg.
Glaidson Acacio dos Santos, the “pharaoh of bitcoins”, joined the Christian Democracy (DC) party on April 2, the last day of the party window, according to a form obtained by Veja. In preventive detention on charges of crime against the financial system and money laundering, Glaidson wants to run for federal deputy for Rio de Janeiro not with the image of a pharaoh, but of a “Moses”, liberator of the traditional economic system. The US Department of Justice on Friday denounced Luiz Capuci Júnior, 44, a Brazilian suspected of leading a global investment fraud scheme that moved US$ 62 million. Capuci is accused of fraudulently selling cryptocurrency mining packages to thousands of people, according to O Globo. And Nvidia agreed to pay a $5.5 million fine as part of a settlement with the US SEC, according to Estadão. The penalty ends a lawsuit over improper disclosures of information regarding the impact of cryptocurrency mining on the company’s gaming business. Another one that got on the radar of the US government was Blender.io, the first digital currency mixer to enter the Treasury Department’s sanctions list. The company is accused of helping the North Korean government launder cryptocurrencies in cybercrime and of being involved in the hack of the online game Axie Infinity, the Wall Street Journal reported. Invasions of so-called crypto “bridges” — which allow users to exchange digital tokens between blockchains — create opportunities for exchanges and other companies to offer more secure alternatives, Bloomberg notes. Exchanges FTX and Coinbase Global have been beefing up tools to provide bridge-like services across multiple blockchains.
Regulation and CBDCs
the GaliciaArgentina’s largest private bank, promised to reimburse customers – and even provide extra value – who bought cryptocurrencies from the institution, after the country’s monetary authority banned banks from trading cryptoassets, according to local media reports. The Gov Token, developed in partnership with the government of Rio de Janeiro with blockchain technology to fight corruption and optimize the use of public funds, has a new developer. Created by Investtools, the project will be transferred to Blockchain Studio, a new company of the same group, according to Exame. Ilan Goldfajn, director of the IMF and former president of the Central Bank, argues that the Brazilian monetary authority should be increasingly involved in the development of new forms of virtual payment, as it is more inclusive. “The central bank’s digital currency can reach where some banks can’t.”, Goldfajn said in a live from Valor on Friday (6). Economists interviewed by Valor think that digital currencies are the Central Bank’s way of “defending itself” against cryptocurrencies that, over time, can evolve into more stable and secure forms. Bitso’s country manager for Brazil, Thales Araújo de Freitas told Forbes magazine that educating investors in the country about investing in cryptocurrencies is still one of the biggest challenges. in Ugandathe central bank is evaluating the issuance of a digital currency and does not plan to ban cryptocurrencies, but is concerned about issues such as consumer protection and financial inclusion, according to Estadão. About 90% of global monetary authorities surveyed by the Bank for International Settlements (BIS) are studying the creation of a central bank digital currency (CBDC), according to a study by the institution. Binance has reportedly suspended its cryptocurrency derivatives services in Spain, allegedly to await approval from the Spanish regulator, CNMV, according to local newspaper La Información. The derivatives menu has been removed from Binance’s Spanish website, but remains available in the global version.
Metaverse, Games and NFTs
Brazilian entrepreneurs already profit from insertions in virtual and augmented reality and other innovations of the metaverse, according to a report by the newspaper O Globo. In the audiovisual sector alone, there are at least 138 companies that offer immersive experiences, shows the “Mapping of the XR Ecosystem in Brazil”, carried out by UFSCar and UFRJ, with support from the Brazilian Audiovisual Content Institute (ICAB). After launching a platform to sell fractions of carbon credits in retail and with blockchain support, Brazilian Ambipar is eyeing other initiatives. In an interview with Exame, the director of digital assets at Ambipar, João Valente, said “there are more partnerships to be announced in the coming weeks” related to blockchain technology and the metaverse. the instagram could announce as early as this Monday (9) the integration of non-fungible tokens to its platform, according to CoinDesk, which does not cite the source of the information. The image social network’s plan would be to launch a pilot project with a “small group of NFT enthusiasts” in the US. Three months after Alphabet, which owns Google, claims it was analyzing Web 3, its cloud computing unit created a technology-focused team, according to CNBC. Amit Zavery, vice president of Google Cloud, told employees in an email on Friday that the idea is to make the platform the first choice for developers in this area.