Crypto Morning: Economy Still Makes Market Cautious, But Cryptocurrencies Maintain Uptrend; Cardano shoots 13%

Charlie Taylor

The cryptocurrency market starts this Monday (6) higher after a weekend of gains, in line with stock markets in Asia and futures indices in the United States. Bitcoin (BTC) is up 5.4% at $31,404.28 in the last 24 hours, according to data from CoinGecko. Ethereum (ETH) is up 5.9% to $1,893.66. In Brazil, Bitcoin is rising by 5.4%, trading at R$ 150,481.10, according to the Bitcoin Portal Index (IPB). Other altcoins are trading in the blue this Monday as Binance Coin (4%), Cardano (+13%), XRP (+3%), Solana (+11%), Dogecoin (+2.3%), Polkadot ( +5.9%) and Avalanche (9.5%). On Friday (3), US stock indices closed lower despite positive data from the US job market, which created 390,000 jobs in May. On Monday, investors are more excited about the easing of restrictions to curb Covid-19 in Beijing.

Vulnerable

However, the mood is still cautious in the face of the macroeconomic scenario of higher interest rates and accelerating inflation, exacerbated by the ongoing conflict between Russia and Ukraine. According to the MLIV Pulse survey released by Bloomberg with 687 participants, assets such as stocks and cryptocurrencies are very vulnerable right now, with the Federal Reserve’s plan to dry its balance sheet. The Fear and Greed Index has advanced into “extreme fear” territory in recent days, similar to what happened in January, which was followed by a boost in the price of BTC. For Joe DiPasquale, CEO of cryptocurrency fund manager BitBull, Bitcoin’s performance should remain weak until it breaks the range between $31,000 and $32,000. “However, we continue to see some purchases below $30,000,” which helps support prices, he told CoinDesk.

TRON reservations

With the total collapse of TerraUSD, TRON announced on Sunday (5) a plan to significantly increase the reserves of its algorithmic stablecoin launched in May, USDD, until then very similar to the Terra blockchain. TRON founder Justin Sun said USDD reserves will now be made up of cryptocurrencies such as Bitcoin ($418 million) and other stablecoins such as Tether (USDT). Meanwhile, experts continue to search for clues as to what caused the Terra/Luna system to crash amid the complexity of the decentralized finance market, according to the Wall Street Journal.

highlights

The Bitcoin Market and Proprietà, digital real estate consultancy in Rio de Janeiro, announced on Friday (3) a partnership that allows the payment of up to 100% of the value of properties through cryptocurrencies. “We are committed to making cryptocurrencies accepted in the most diverse transactions, meeting an increasing market demand (…)”, said Reinaldo Rabelo, CEO of Mercado Bitcoin, which already has similar partnerships with developers Even and Melnick and, in the vehicle sector, with the online dealership NetCarros. Travel company Travala now allows payment for some services – the experience of driving a luxury super sports car such as Ferrari, for example – using cryptocurrencies, which includes Shiba Inu (SHIB), when purchasing the package. But in the last 30 days, the token has accumulated losses of almost 50%, according to CoinMarketCap. To drive one of the big cars for just one hour through the streets of Miami, it would take around 23 million units of the token, which operates up 4.6% in the last 24 hours.

The Mexican exchange Bitso won 1 million customers in Brazil and, despite the drop in cryptocurrency prices, says that the period is useful for creating products. “It’s a year of construction,” the company’s CEO, Thales Freitas, who took over last April, told Blocknews. Bitso is also already part of Zetta, an association that brings together technology and finance companies such as Mercado Bitcoin and Nubank.

Daniel Mangabeira, spokesperson for Binance in Brazil and director of institutional relations for Latin America, said in an interview with the Broadcast do Estadão agency that the “Binance Pay” payment system will be launched “soon”. Mangabeira stated that the exchange awaits the definition of a regulatory framework to formally apply for the operating license in Brazil. “The bill [em tramitação na Câmara] it is positive because it is principled, but there is a certain legislative purism”, he said.

B3 does not intend to compete with cryptocurrency exchanges by its end customers, despite having received authorization from the CVM to operate in the digital assets market through a partnership with the subsidiary BLK. The purpose of the new company, B3 DA (acronym for B3 Digital Assets), is to provide services linked to the business infrastructure for digital assets. “It will be a ‘business to business’ service and not ‘business to client’”, reinforced B3 to the Bitcoin Portal.

Companies in Brazil seek to create “access groups” to the financial market with the arrival of “cryptotions”, according to a report by FolhaInvest. The process has been made cheaper with technology, such as blockchain, for asset tokenization, and the idea is to create the conditions for companies that cannot yet be listed to test their growth theses.

In the opinion of Guilherme Rebane, head of Latam at the OSL digital asset platform, Brazil is the breadbasket of the greatest diversity of index funds for investments in cryptocurrencies. “A positive point of ETFs is the fact that they are traded in a regulated exchange environment, in the case of Brazil, on B3, even if, in the case of digital currencies, they are an asset class not yet regulated,” he said in a statement. article on the Bitcoin Portal.

The META11 Metaverse ETF, for example, was released on Friday (3) on B3. The product will offer investors exposure to crypto assets from the blockchain culture and entertainment industry, according to E-Investidor.

Is the market facing the beginning of the crypto winter or is it already over? Analysis by CoinDesk’s David Z Morris points out that despite multiple layoff announcements on cryptocurrency exchanges, the numbers still don’t compare to the cuts that took place in the previous crypto winter, when the market capitalization shrank from $830 billion at the start. from 2018 to $100 billion in December of that year. The article also highlights that Coinbase’s decision to rescind already accepted job offers indicates “panic” resulting from the “failure” of planning to adapt to market conditions.

And the Coinbase action is among the roles that have driven star manager Cathie Woods’ ARK Innovation ETF. The fund is up 17% from a low on May 11, and Coinbase shares are up 24% in the period, despite a 74% drop since January, analysis by the Wall Street Journal shows, which could be a sign of optimism despite the recent turmoil.

Mining

Pressure from environmentalists grows after the passage of a bill by the state of New York that prohibits fossil fuel plants from establishing new projects to supply cryptocurrency miners using the consensus mechanism known as proof of work (PoW). The measure would be valid for two years and now depends on the sanction of Governor Kathy Hochul. Activists are also calling for a ban on atmospheric emissions permits for Bitcoin miner Greenidge Generation, according to CoinDesk.

Meanwhile, Middle Eastern oil producers reinforce the bet on Bitcoin mining. Crusoe Energy, a private US company that pioneered BTC mining that uses surplus natural gas as a source of energy, is expanding in the region with investments from Mubadala, the sovereign wealth fund of Abu Dhabi, and the Oman Investment Authority (OIA). ).

The impact of cryptocurrency mining not go unnoticed by the Biden administration, which is preparing a study with policy recommendations to reduce the activity’s environmental footprint, a White House energy official told Bloomberg Law. The report is expected in August.

Regulation, Cybersecurity and CBDCs

US consumers reported losses of over $1 billion in cryptocurrency-related fraud between January 2021 and March this year, according to analysis by the Federal Trade Commission (FTC). “Cryptocurrencies are fast becoming the payment of choice for many scammers,” the agency said.

In Brazil, business administrator Aline Fernandes dos Santos, 41, lost his savings of R$ 600 thousand reais, victim of a Tinder scam, Folha learned. A flirt claiming to be a British investor involved her with messages that led her to make applications at a fraudulent brokerage called BTX Exchange. With the increase in cryptocurrency fraud, law firms in Brazil report a greater demand from clients looking for solutions.

And speaking of scamsthe Bored Ape Yacht Club (BAYC) project reported Saturday that its Discord servers suffered a “brief” hacking attack, which resulted in the theft of non-fungible tokens equivalent to 200 ETH ($357,000), according to the report. The Block.

The government of Bermuda, with a strong offshore insurance and reinsurance industryis betting that transparency in the regulation of digital assets can help attract more cryptocurrency projects and companies despite volatility in the markets, highlights the Wall Street Journal.

Metaverse, Games and NFTs

Almost 15 years after the iPhone revolution, Apple takes the first steps towards a device that connects the digital world to the real, three people familiar with the plans told the New York Times. The company hired Hollywood directors such as Jon Favreau to develop video content for a device that would be released next year. Apple did not comment.

On planet Omega, speed means power, and whoever wins the race will rule the world. That’s the premise of the Web3 and multimedia sci-fi project “Runner,” created by Bryan Unkeless, “The Hunger Games” producer, Cedric Nicolas-Troyan, Bryce Anderson and Blaise Hemingway. Runner will be produced as a comic book, a profile picture project in the form of non-fungible tokens, a video game and, in the future, a TV series by Unkeless production company Clubhouse Pictures, according to Decrypt.

The Snackclub, startup of Web3 created by the founders of the esports organization LOUD, closed a partnership with Sky Mavis to carry out the “Axie Infinity Origin Champions Brazil”, according to Forbes. The objective of the initiative is to bring together content creators and influencers who have visibility in the game.

Next Thursday (9), the event begins Consensus 2022, hosted by CoinDesk in Austin, Texas, attended by cryptocurrency industry executives such as FTX CEO Sam Bankman-Fried, Binance CEO Changpeng Zhao, Fidelity Investments CEO Abby Johnson, and authorities such as Deputy US Treasury Secretary Wally Adeyemo. The event runs until June 12.

Winner of a Crypto Space Agency sweepstakes By buying an NFT, Brazilian Victor Hespanha fulfilled his dream of going into space on Saturday (4), on Blue Origin’s NS-21 mission. “I have no words. Up there, I felt like I was leaving my body,” he said after the flight, according to Exame.

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