The global cryptocurrency market shows signs of stabilization this Friday (20), with investors more excited about news from China. Bitcoin (BTC) is up 5.7% in the last 24 hours to $30,381.19, according to data from CoinGecko. Ethereum (ETH) is up 3.5% at $2,039.78. In Brazil, Bitcoin shows an appreciation of 2.3%, trading at R$ 149,093.52, according to the Bitcoin Portal Index (IPB). The two biggest cryptocurrencies are already in the black for the seven-day period, with BTC up 3.3% and Ethereum up 2.7%. Major altcoins also show recovery this Friday (20) as Binance Coin (+4.1%), XRP (+6.9%), Cardano (+4.5%), Solana (+1.4%) , Dogecoin (+2.8%), Polkadot (+4.6%), Avalanche (+3.4%) and Shiba Inu (+2.6%), according to data from CoinGecko. In Brazil, billionaire Elon Musk is expected to arrive in the country, who is expected to meet with President Jair Bolsonaro around 10 am and participate in a lunch with politicians and businessmen at a luxury hotel in the Porto Feliz region, in São Paulo. The news of Musk’s arrival in Brazil was originally published by columnist Lauro Jardim, from the newspaper O Globo, and later confirmed by other vehicles in the Brazilian press. In his Thursday night live, Bolsonaro said he would have a private meeting with “a very important person, recognized around the world”, who would have come “to help our Amazon”, without revealing his name. The event takes place at the same time as the Conecta Amazônia event, which discusses the provision of Internet in the region encompassed by the forest. In previous meetings of government envoys with Musk, in the US, the possibility of a partnership was discussed to bring the Internet to more remote regions of Brazil using the technology developed by the companies Starlink and Space X, which belong to the entrepreneur, based on low-speed satellites. altitude. According to Lauro Jardim, the guest list includes names like André Esteves, from BTG Pactual bank, and Rubens Ometto, from Cosan. According to reports published by newspapers, there are fears among the guests that the event will become a political act by Bolsonaro, in a campaign for reelection. Musk has yet to comment on the meeting on Twitter, but during this week he has positioned himself on the right of the political spectrum. He said he was initially aligned with the Democrats in the US, but became a Republican after the Democrats became the “hate & division” party. The theme is already becoming a trending topic on Brazilian Twitter, with the hashtag #bolsomusk. Musk, the richest man in the world, is still in a troubled process of buying Twitter. The acquisition of the social platform was temporarily suspended by the entrepreneur, claiming that he needs more information about the amount of bots and fake accounts on the network before proceeding with the business.
Overseas, cryptocurrencies are buoyed by gains in index futures in the United States and Asian markets, driven by the decision of banks in China to cut an interest rate crucial for long-term loans. Lowering mortgage costs could boost demand for financing at a time of a downturn in the housing market and lockdowns to curb Covid. The performance of cryptocurrencies was shaken by the collapse of the TerraUSD stablecoin, but the bleeding in the US stock market also contributed to the price drop.
Crypto x stocks
Kansas City Federal Reserve Chair Esther George said in an interview with CNBC that the sell-off in stocks this week is not surprising given the US central bank’s determination to lower inflation with higher interest rates. According to her, the Fed is not focused on the impact of monetary policy on the stock market. For the Bank of America research team, concern about the so-called crypto winter is overblown. In a report, analysts at the bank recall that the tokens that feed the crypto ecosystem are traded as high-growth and speculative risk assets. Therefore, they are also influenced by accelerated inflation, rising interest rates and the expectation of recession.
Trust in Tether
In order to boost investor confidence, Tether reduced the amount of promissory notes (short-term debt securities) in reserves used to back USDT, the world’s largest stablecoin, by 17%. The volume of these bonds corresponded to $20.1 billion of reserves as of March 31 in the quarterly comparison, according to the report. The company also increased exposure to Treasuries, US Treasuries. Tether had assets of $82.4 billion at the end of the first quarter, and its current market capitalization totals $74 billion. The regulatory agency for financial markets in the United Kingdom is aware of the chaos caused by the implosion of the Earth ecosystem. In an interview with Bloomberg, Sarah Pritchard, executive director of markets at the Financial Conduct Authority (FCA), said the recent turmoil among stablecoins “will absolutely be taken into account” as the agency begins working with the Treasury to develop and implement rules. for crypto this year. G7 finance ministers and central banks also called for swift and comprehensive regulation of digital assets in the wake of losses caused by the loss of TerraUSD parity, according to a draft of a statement released on Thursday. Amid increased investor caution, USD Coin appears to be benefiting, at least for now. The market capitalization of the second-largest stablecoin rose to around $52.8 billion, close to a March high from $48 billion on May 8, according to data from CoinGecko. The most secure stablecoins are centralized, or backed by fiat currencies, highlights an analysis by Forbes. “Still, there are several risks, such as the company going bankrupt, having some operational problem, and they using the money to buy volatile assets and not being able to maintain the one-to-one parity, for example”, explains Fabricio Tota, director from Bitcoin Market.
Julius Baer plans to offer advising, trading and investing in cryptocurrencies for high net worth clients, with the aim of being a bridge between “digital assets and the fiat world”, according to a statement. The Swiss bank sees the current turmoil in the global cryptocurrency market as a turning point for the asset class, according to Bloomberg.
While some advance, others retreat. In the face of recent volatility, Commonwealth Bank, Australia’s largest bank, has suspended trading on a pilot cryptocurrency trading app, according to The Guardian. The bank had announced last November that it would gradually develop the platform to fully operational throughout 2022.
The FTX decided to enter in stock trading to capture a larger pool of investors amid the crypto winter. In a statement, the cryptocurrency exchange said that select users will be able to trade hundreds of U.S.-listed stocks and index funds without fees and use stablecoins like USD Coin to buy the assets, according to Bloomberg.
Regulation, Cybersecurity and CBDCs
Entities representing the crypto asset sectors sent an open letter to federal deputies asking for urgency in the approval of the bill that regulates the digital assets market in Brazil, according to Folha’s Panel. “We consider that a clear regulatory framework is fundamental for legal certainty, providing a healthy market with best practices that are necessary for the effective protection of consumers, investors and popular savings”, says the letter signed by the Business Coalition of Cryptoeconomy, which includes ABCripto, ABFintechs, Brasscom and Zetta.
In Portugal, the absence of legislation, combined with affordable living costs and mild temperatures, has drawn a growing number of digital nomads and cryptocurrency companies to the country in recent years. Now, the government is considering taxing cryptocurrency earnings. Portuguese Finance Minister Fernando Medina did not set a deadline. “The timeline will be as soon as possible, when we have a consistent proposal and after a broad public debate,” he told reporters in Lisbon on Thursday (19), assuring that the country will continue to be a competitive destination.
In Brazil, the Securities and Exchange Commission suspended public offerings and client acquisition by Media Force Limited, a company that had been offering foreign exchange and cryptocurrency derivatives trading services without authorization from the municipality. The CVM carries out the Regulatory Impact Analysis (AIR) on the performance of digital influencers and should release a resolution by mid-2023, according to experts heard by Estadão. “Attention to the issue of crypto-assets and related fraud can speed up the process, but I don’t see a possibility for this year,” says Jonathan Mazon, partner attorney at Junqueira Ie Advogados.
Toluna Search published by Valor Investe revealed that 48% of Brazilian participants do not invest in these digital currencies because they do not “know enough about the asset”. The survey also showed that only 16% of respondents said they were completely familiar with the concept of cryptocurrencies.
Alessio Evangelista, associate director of the US Financial Crime Enforcement Network (FinCEN), said at a conference on Thursday that “often” crypto service providers do not act on “problem” wallets until the day of a criminal mention or indictment. by Treasury officials, according to CoinDesk.
The International Trade Administration of the US Department of Commerce released a statement soliciting consumer input as it develops a framework to increase US economic competitiveness and leverage digital asset technologies, according to the Wall Street Journal.
Metaverse, Games and NFTs
Partnerships between cryptocurrency companies and football teams increase. In Série A of the Brazilian Championship, eight clubs have already launched fan tokens, points out Estadão. Corinthians, for example, is sponsored by the Bitcoin Market. For Sylmara Multini, CEO of IDG (Internacional Digital Group), the crypto-assets market must unite the physical and digital experience. The California startup has projects to launch in the fields of entertainment, sports and music in the coming months.
In the US football leagueNFL San Francisco 49ers player Alex Barrett will receive 100% of his salary in Bitcoin as part of the athlete’s partnership with Bitwage, a cryptocurrency payments company.
And Meta launched the “RAP Challenge: Augmented Reality on the Skin” with the goal of promoting diversity, equity and inclusion in the metaverse, according to Forbes. The program will be exclusive in Brazil and proposes training and awards focused on the education and development of the black community in the augmented reality ecosystem in the country.