Crypto Morning: Bitcoin Returns to $29K as China Retreats, But Cardano (ADA) and Solana (SOL) Continue to Rise

Charlie Taylor

Bitcoin’s (BTC) reaction on Sunday was short-lived and the biggest cryptocurrency is back trading below $30,000, but some altcoins are holding up the gains. Over the past 24 hours, BTC has been trading with little variation, trading at $29,777, according to data from CoinGecko. Ethereum (ETH) is also showing stability, trading at $2,026. In Brazil, Bitcoin follows sideways, quoted at R$ 151,595, according to the Bitcoin Portal Index (IPB). Most cryptocurrencies traded higher in the Asian session, but followed US futures indices following the release of economic data from China. The Covid Zero policy of the world’s second largest economy has wreaked havoc. In April, Chinese industrial production fell 2.9% year-on-year, while sales fell 11.1%. The cryptocurrency market has shrunk by about $326 billion in the past seven days to about $1.33 trillion, according to data from CoinGecko. And Bitcoin is down 57% from last November’s high. Major altcoins are heading in opposite directions this Monday as Binance Coin (+0.9%), XRP (+0.1%), Cardano (+5%), Solana (+5.3%), Dogecoin (- 0.6%), Polkadot (-0.1%), Avalanche (-2.7%) and Shiba Inu (-1.1%), according to data from CoinGecko.

Earth (MOON)

The announcement of a turnaround plan by Terra founder Do Kwon does not appear to have given investors enough confidence. According to analysts, the market is waiting for more concrete actions from blockchain developers – such as large-scale burning of LUNA, which currently has more than 6 trillion tokens spread around – before setting a more consistent course for the cryptocurrency. While cryptocurrency investors appear to have already digested the impact of the TerraUSD stablecoin collapse, challenges remain, such as rising global interest rates and tighter liquidity conditions, Bloomberg highlights. Bitcoin’s current support is at $27,000, “which could likely stabilize price action over the next few days,” said Edul Patel, CEO of Mudrex, an algorithm-based crypto investment platform. In a column on E-Investidor, Fabricio Tota, director of Mercado Bitcoin, highlights that the crypto market is less and less dependent on Bitcoin. For the executive, tokenization makes it possible to democratize investments, which were previously restricted to a select group. “For those who are still reticent about cryptocurrencies, tokens are a good gateway because many are tied to real products.”

Other highlights

Brazil is among the five countries with the highest number of crypto investors. There are more than 10 million Brazilians, about 5% of the population, behind only India, USA, Russia and Nigeria, according to Forbes. For Reinaldo Rabelo, CEO of Mercado Bitcoin, companies operating in the sector will increasingly be service providers for easy access to crypto assets and the applications that use them – and not just trading marketplaces.

Keeping an eye on this expansion of the Brazilian market, foreign exchanges prepare strategies to gain share. Hi, a digital crypto bank from Hong Kong that recently landed in the country, plans to hire a country manager later this year and has set aside $500,000 of marketing dollars to become a well-known brand, according to InfoMoney.

Despite the reduction in the financial volume traded in the first quarter, B3 believes in a recovery in the coming months. The group’s chief financial officer, André Milanez, said in a earnings call that the Brazilian stock exchange plans to launch “bitcoin futures in the next three to six months,” according to Valor.

Nubank will allow the purchase of Bitcoin, but withdrawals of the cryptocurrency acquired by the bank application will not be available, according to information confirmed by the Bitcoin Portal. “(…) The customer, however, can withdraw in reais at the real-time quote and transfer from Nubank’s digital account to the platform of their choice”, says a note sent by email.

Founder of FTX, Sam Bankman-Fried, said in an interview with the Financial Times that Bitcoin “has no future” as a payments network and criticized the digital currency for its “inefficiency and high environmental costs”. But the cryptocurrency exchange’s CEO believes that BTC could still have a future as an “asset, commodity and store of value” like gold.

The Grayscale prepares an index fund (ETF) in Europe made up of companies representing the “Future of Finance”, the world’s largest crypto asset manager said in a statement on Monday. The ETF starts trading May 17 in the UK, Italy and Germany, according to Reuters.

Goldman Sachs and Barclays participated in a $70 million funding round from Elwood Technologies, the cryptocurrency trading platform founded by billionaire Alan Howard, according to Bloomberg.

The 11 Richest Billionaires in the Crypto Assets Industry have lost a combined $60 billion to the turmoil in recent weeks, Forbes estimates show. Changpeng Zhao, CEO of Binance, bore the brunt of the losses: his fortune has shrunk from $65 billion in March to $17.4 billion today.

Regulation, Cybersecurity and CBDCs

Leading authorities on tax and financial crimes from the UK, US, Canada, Australia and the Netherlands, a group known as the J5, have identified more than 50 leads to possible illicit activity involving digital assets that could lead to investigations in the coming weeks, which includes a possible financial pyramid scheme of $1 billion, according to Bloomberg.

In Europethe cryptocurrency regulation project has flaws, says Karel Lannoo, president of the Center for European Policy Studies in Brussels, in an article in the Financial Times, noting that the proposed rules leave investors vulnerable and increase misinformation.

In Brazil, the bill passed by the Senate – awaiting the green light from the Chamber of Deputies – amends the Penal Code to include cryptocurrency fraud crimes. In an interview with Folha, Julien Dutra, director of government relations at 2TM, owner of the Bitcoin Market, highlighted the importance of the balance between promoting innovation and consumer protection: “We, operators, feel even more comfortable knowing that the message about safety for the public behind the counter will be clear”.

With regulation in focus in Brazil, the Central Bank’s agenda begins to include meetings with cryptocurrency exchanges. On Friday, BC President Roberto Campos participated in a video conference with Binance CEO Changpeng (CZ) Zhao, according to Bitcoin Portal. This Monday (16), videoconferences with executives from Coinbase and Bitso are planned, according to the agenda.

Less than a month to go For the 2022 Income Tax return deadline, many crypto investors are still in doubt. The ebook prepared by Ana Paula Rabello in partnership with Mercado Bitcoin provides information on the taxation of cryptocurrencies and can be downloaded for free here.

Metaverse, Games and NFTs

Milton Nascimento takes advantage of the farewell tour of the stages, “The Last Music Session”, to debut in the world of non-fungible tokens with an engraving made by hand by the singer as a boy, according to Estadão. The first show of the international tour will be held on June 11, in Rio de Janeiro, in a special session restricted to friends, artists and those who purchase the NFT Ticket Pass.

An NFT from the famous Bored Ape Yacht Club collection (BAYC) was sold on Sunday (15) for just 200 USDC stablecoin tokens, equivalent to US$ 200. Part of the crypto community suspects that the mistake in the negotiation is nothing more than a trick to evade taxes.

Specialized in hosting big events for the virtual world, the Brazilian startup Transformação Digital (TD) is now betting on tools related to the metaverse. Last week’s TD Web Conference tested a metahuman presenter named K1M, according to Forbes.

The Brazil at Silicon Valley (BSV) conference gathers this Monday and Tuesday about 700 entrepreneurs and investors at the Computer Museum, in Mountain View, California. “We have defined macro themes that will dictate the future of technology worldwide. Artificial intelligence, scale to innovation, the future of investments – where cryptocurrencies come in -, metaverse and Web 3.0, and the future of the climate”, Karine Yuki, from the content team at BSV, told Valor. Hashdex co-founder Marcelo Sampaio and Roblox head of product Manuel Bronstein are among the panelists at the event.

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