Crypto morning: Bitcoin sketches high, Earth on track to create new LUNA and exchange-crypto relationship gains new understanding

Charlie Taylor

The two biggest cryptocurrencies rehearse a recovery this Wednesday (25), with Bitcoin (BTC) up 1.8% in the last 24 hours, quoted at $ 29,845, data from CoinGecko show. Ethereum (ETH) is stable, trading at $1,977. In Brazil, Bitcoin advanced 1.3% to R$144,102, according to the Bitcoin Portal Index (IPB). The US stock market took a scare on Tuesday with Snap’s warning. The social media platform’s company said revenue and profit for the second quarter are expected to be below projections. With that, the Nasdaq, focused on the technology sector, closed down 2.3%.

time correlation

Analysis by Bespoke Investment Group published by Bloomberg indicates that Bitcoin’s poor performance could be attributed to correlation with stock market trading hours. “Basically, all of Bitcoin’s decline in the last month occurred when US markets were open,” strategists at Bespoke said in a report, a sign that Bitcoin’s devaluation has more to do with investors looking to raise funds and sell assets in general rather than a specific trend. The largest cryptocurrency, traded 24/7, tends to be relatively stable on weekends. But when the exchanges open, BTC falls off a cliff,” with average declines of around 1.5% during trading hours. Data from Glassnode shows that internal capital rotation is leaning towards Bitcoin this time around, perhaps due to the recent collapse of LUNA and UST tokens. Such rotation is a feature of bear markets as investors turn to supposedly safer assets, the report notes. In fact, Bitcoin’s dominance is at its highest level since January, with around 45% of the total cryptocurrency market capitalization.

Bitcoin’s course

Still, the head of research at asset manager Valkyrie, Josh Olszewicz, predicts further losses for BTC. In an interview with CoinDesk, the analyst said that volatility needs to subside for Bitcoin to reach a short-term floor and that the current decline may be being driven by institutional investors. Scott Minerd, chief investment officer at Guggenheim Investments, is even more bearish and told CNBC that BTC could drop to $8,000. But an analysis by CoinDesk highlights that Minerd’s predictions fluctuate wildly. In December 2020, for example, when the cryptocurrency was worth around $20,000, he projected a jump to $400,000.

Future of the MOON

Voting on the proposed recovery plan for the Earth ecosystem moves forward. By the current numbers, the proposal that defends a new version of the LUNA token must be approved by the community this Wednesday, when the voting ends. If indeed approved, the new version of the cryptocurrency will be released as early as Friday, May 27. Even with the “crash” and distrust in decentralized finance projects, traders seem to be preparing to renew bets on altcoins, which operate between losses and gains this Wednesday (25) as Binance Coin (+1%), XRP ( -0.6%), Cardano (-0.2%), Solana (-1.7%), Dogecoin (-0.9%), Polkadot (+0.3%), Avalanche (-2.5% ) and Shiba Inu (-1.5%), show data from CoinGecko.

Other highlights

The participation of foreigners in investments in startups in Brazil grew this year. According to a survey by the Distrito innovation platform published by Reuters, non-resident investors participated in 39% of the 238 rounds of Brazilian startups from January to April, compared to 33% in the same period last year.

In Davos, the mayor of Miami, Francis Suárez, said he is still getting his salary paid by the city in bitcoins, despite the cryptocurrency’s nearly 40% devaluation in the last two months. But he stressed that it is not “his only source of income,” according to Bloomberg.

Also present at the World Economic ForumMastercard CEO Michael Miebach surprised during a panel when he said that SWIFT, the current interbank messaging system that allows cross-border payments, may not exist in five years, according to CoinDesk.

Adam Neumann, Founder and Former CEO of WeWork, who resigned amid controversies related to the company’s initial public offering, launched a crypto startup, Flowcarbon. The new venture aims to bring the carbon credits market to the blockchain with the Goddess Nature Token (GNT).

The Stripe payments company has partnered with cryptocurrency startup OpenNode to allow customers to accept Bitcoin payments through a new app, the companies announced Tuesday.

Coinbase, largest US cryptocurrency exchange, became the first company in the crypto sector to be included in the Fortune 500 list, compiled annually by the magazine based on the revenue of American companies. With revenue of $7.8 billion in fiscal 2021, Coinbase ranked 437th on the list.

Regulation, Cybersecurity and CBDCs

The bill that regulates the cryptocurrency market in Brazil is ready to advance in the Chamber of Deputies, said deputy Expedito Ferreira Neto (PSD-RO), rapporteur of the text in the House, during a live held by Valor. The bill was approved by the Senate at the end of April and may go to vote as early as next week, according to the deputy. Leandro Vilain, executive director of innovation, banking products and services at Febraban (Brazilian Federation of Banks), said at the event that, for the banking system, “it is a headache” that the crypto segment is not yet regulated. “In some situations, when there are suspicious transactions, in addition to reporting to Coaf, banks in general try to end the relationship with brokers [suspeitas]but they often continue to operate through court injunctions that end up having serious consequences for the consumer themselves,” he said, defending the existence of a “very active” regulatory body for the cryptocurrency market in Brazil.

Amid the threat of cybercrimeamong them cryptocurrency scams, the Ministry of Justice and Public Security of Brazil organized a two-week event in Rio de Janeiro and Porto Alegre with CIA and FBI representatives in an event that ended last Friday (20).

Porto Alegre city councilors Jessé Sangalli (Citizenship) and Alexandre Bobadra (PL) submitted a bill to the City Council that seeks to establish Bitcoin Pizza Day as an official date in the city’s calendar. The objective is to move the capital of Rio Grande do Sul every May 22 with lectures and events on the date.

In the US, a bill to regulate cryptocurrencies may be presented in June, according to CoinDesk. The proposal by Senators Kirsten Gillibrand (Democrat of New York) and Cynthia Lummis (Republican of Wyoming) would differentiate the roles of the main regulatory agencies in the US market. The PL could be voted on as early as 2023.

Metaverse, Games and NFTs

Inspired by the experience of Ukraine, Petrópolis passed a law at the end of March to release non-fungible tokens that will help pay for rebuilding the city after the February rains. According to the newspaper O Globo, the city hall will forward a consultation to the Court of Auditors of the State of Rio to define the model of its NFTs project and would be in conversations with platforms such as Mercado Bitcoin and Binance to discuss the feasibility and interest.

In the US, NoMo SoHo, in New York, is the first establishment to accept reservations in non-fungible tokens that include packages of three to six nights at the luxury hotel. The “NFTStays” are available through the SolidBlock platform, which specializes in asset tokenization for the real estate market, highlighted Forbes.

Considered a precursor of the internet in Brazil, professor and researcher at UFRGS, Liane Tarouco, 75, said in an interview with O Globo that the metaverse is indeed the future of the Internet, and that its development already brings a series of applications for industry, agriculture and education. Currently, the researcher works on the AVATAR Project (Virtual Environment for Remote Learning and Academic Work) to implement virtual worlds and metaverses in laboratories for teaching science.

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