Despite the positive signs in the Brazilian market with the advancement of the regulatory framework for cryptocurrencies, topics such as global inflation, Covid in China and higher interest rates still dominate negotiations. Bitcoin (BTC) is down 3.2% over the past 24 hours to $39,082, according to data from CoinGecko. Ethereum (ETH) is down 3.1% to trade at $2,903. In Brazil, Bitcoin retreats 0.9%, to R$ 195,692, according to the Bitcoin Portal Index (IPB). Inflation weighs on companies and consumers alike, as the Federal Reserve’s pledge to tighten monetary policy at a faster pace threatens to undermine growth in the world’s largest economy. In the second largest economy, China, the advance of Covid led the government to enact strict lockdowns, in contrast to the apparent normality in other countries after the shock of the pandemic that began in 2020. Another factor that worried investors was the announcement by Russia that it will cut off gas supplies to Poland, according to the New York Times. The Dow Jones, S&P 500 and Nasdaq indexes could end April with losses of at least 4%, according to calculations by the Wall Street Journal. And this pressure on the American stock market is reflected in the performance of cryptocurrencies. “From the point of view of data on the blockchain, we have a considerable increase in the settlement of investors positioned on sale, but with an increase in buy positions, which was reflected in a reduction in market leverage,” said Humberto Andrade, trading analyst of the Bitcoin Market, in an interview with Valor. Messari’s Tom Dunleavy believes that Bitcoin could “detach” itself from US equities and improve performance despite the economic downturn prospects. Major altcoins also reverse Tuesday’s gains and operate in the red this morning, with losses to Binance Coin (-1.8%), XRP (-4.1%), Solana (-0.7%), Earth (-6.7%), Cardano (-4.5%), Polkadot (-4%), Avalanche (-1.6%) and Shiba Inu (-2.4%), show data from CoinGecko. Not even Dogecoin, which rose 30% after the announcement of the purchase of Twitter by Elon Musk, resists the bad mood of investors and has fallen by 11.6% in the last 24 hours. Coinbase Global Chief Executive Brian Armstrong said the deal between Musk and Twitter is “a big win for free speech” and predicts the takeover could be more transformative than people think, according to Coinbase Global. Bloomberg.
Amid the challenging macro scenario, the Senate Plenary approved on Tuesday (26) PL 3.825/2019, which regulates the cryptocurrency sector in Brazil. The original text was authored by Senator Flávio Arns (Podemos/PR) and was reported by Senator Irajá Abreu (PSD/TO). As Senator Irajá gathered proposals in the Chamber and Senate, the PL will now be evaluated by the deputies and will have to be approved by the majority of the 513 parliamentarians in the House. The main points of the project include guidelines for infra-legal regulation, consumer protection and defense, prevention of money laundering and combating financial crimes, promotion of transparency of operations with crypto-assets and green mining.
In an interview with Valor, Julien Dutra, director of government relations at 2TM, owner of the Bitcoin Market, said that the approved project puts Brazil at the “vanguard” of nations that regulated the market to stimulate and not restrict. However, issues related to the tax exemption on the purchase of computers by miners, which includes an incentive for the use of clean energy, may generate controversy, since the government’s accounts are in a delicate situation. But, even if this point is vetoed, Dutra does not believe that this will affect the legislation as a whole, noting that the project “will provide comfort for people to operate. There are a lot of people, a lot of operators, including abroad, waiting for regulation to happen so they can win customers,” he said in the interview.
According to a study by the Bitcoin Mining Council (BMC) published by Exame, the Bitcoin network reduced energy consumption by 25% in the first quarter of 2022 in the annual comparison, and 58.4% of the energy used by miners of the main blockchain in the world today. comes from sustainable sources. In New YorkFor example, the state legislature passed a bill to prevent new cryptocurrency mining facilities that use non-renewable energy sources from establishing themselves in the state, according to CoinDesk. in Texas, the City of Fort Worth has approved Bitcoin mining and will use three Bitmain S9 Antminer series machines donated by the Texas Blockchain Council. The city estimates that each of the mining machines will consume “the same amount of energy as a household vacuum”. Crypto exchange Bitso announced a partnership with “climatech” Moss to offset all issuance of transactions with bitcoin and ERC-20 tokens. The platform has 300 customers, including iFood and Hering.
Like Rio de Janeiro, other cities implement measures to accept cryptocurrencies for tax payment. Horacio Rodríguez Larreta, mayor of Buenos Aires, said on Monday (25) that the city hall has plans in this regard. “The idea is to receive payments in pesos. It is the platforms that will implement the changes from cryptocurrencies to pesos.” in El Salvador, only four of the 10 Salvadorans who downloaded the state-owned crypto wallet Chivo said they are still using it after getting the government’s $30 bitcoin incentive, according to a report by the U.S. National Bureau of Economic Research released by CoinDesk. On Thursday (28), negotiations begin involving the parliament, the commission and the council of the European Union on the controversial rules against money laundering for cryptocurrency transactions. In Cuba, the central bank announced that it will issue licenses to providers of virtual assets, which will be valid for 12 months and can be renewed for a second year, according to CoinDesk.
The Bitcoin Market and EQI merged into a new company: EQI will bring the crypto asset menu to its customer base, and Mercado Bitcoin will extend its offer to traditional asset classes, as per Valor. “The customer gains a lot when there are partnerships involving ‘equity’, the companies are in fact aligned, it is not just a line of revenue within the product”, says the CEO of Mercado Bitcoin, Reinaldo Rabelo. to Lumy, A developer focused on low-cost real estate developments, started accepting payments in Bitcoin and Ethereum for apartments in São Paulo and is considering adopting other digital currencies, including stablecoins, according to Valor Investe. The Revolution wants to expand in the segment of decentralized cryptocurrency wallets and is also targeting the mortgage sector, Nik Storonsky, CEO of the British digital banking platform, said in an interview with Reuters. The first exchange-traded product (ETP) which combines gold and bitcoin in a single fund should debut this Wednesday (27) in Switzerland SIX. The 21Shares ByteTree Bold Index ETP will be launched by ByteTree Asset Management, the Financial Times reported. Oddity Techa New York-based online beauty retailer, will offer investors a new type of security token that automatically converts to shares if the company decides to go public, the Wall Street Journal reported. Study carried out with 28 thousand people by exchange Bitstamp revealed that 8 out of 10 institutional investors believe that, in the next decade, the crypto sector will dethrone traditional investment media. Emerging countries, such as Brazil, trust new technology more than developed countries – 80% versus 62%, respectively, according to Exame. more than a third of Brazilians who are banked have relationships with fintechs, according to a Zetta survey published by Estadão. The entity represents startups in the financial sector such as Mercado Bitcoin. The first index fund Cryptocurrency leader in Brazil, HASH11, completed one year on Tuesday (26) and is eyeing the leadership of the ETF market. In an interview with InfoMoney, Marcelo Sampaio, CEO of Hashdex, believes that the goal should be reached by the second anniversary of the ETF, in April 2023.
Metaverse, Games and NFTs
A new NFT trading platform landed in Brazil. Since Sunday (24), the NFTexperience, which will allow users to buy non-fungible tokens using the BNB cryptocurrency, has been operating. THE LOUD, one of the largest game organizations in Brazil with more than 300 million followers, raised R$50 million in a round in partnership with Snackclub, a startup specialized in Web3. The goal is to invest in blockchain games in Latin America, according to Forbes.