Financial Markets Unsettled But Crypto Is OK

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2022-06-22 22:39:42

Market situation

Bitcoin had a time when it went down to $45,000 but then returned to above $46,000. Altcoins do not fluctuate much in price.

The stock market ended the first session of the week with a good gain. The futures contract fell slightly, almost moving sideways in all three indexes. Oil market also increased slightly to 104 USD/barrel. Gold is flat at 1931 USD/ounce.

Digital asset investment products saw inflows totaling $180 million last week while reports of some late deals pushed last week’s inflows from $193 million to $244 million USD. The regional divide remains, with 99% of capital inflows coming from Europe, while the Americas remain hesitant, seeing only $1.7 million in inflows.

The capital flow mainly went into BTC with 144 million USD. Next comes ETH, SOL, ADA and other small coins.

Elon Musk becomes Twitter’s largest shareholder

Over the weekend, the news that got a lot of attention was that Elon Musk bought shares and became the largest shareholder of the Twitter company. Elon Musk bought 73,486,938 shares of Twitter, representing a 9.2% passive stake in the company, according to SEC filings. The shares Elon Musk bought were worth $2.89 billion, based on Twitter’s closing price on Friday. Following the news, shares of the company Twitter jumped more than 27% in trading. At the end of the session, the price continued to increase slightly.

One type of meme coin that is liked and shared by Elon Musk is Dogecoin which also increased slightly. Many also wonder if Elon Musk will accept payments in Dogecoin on Twitter.

Inflation rises and BTC gradually becomes a store of value

Financial markets are still affected by the Fed’s information regarding interest rates, inflation or the war between Russia and Ukraine.

The development of the real estate market is said by Dan Tapiero that investors may see a slowdown in the market in the near future. The reason for the slowdown was that the Fed raised interest rates, causing interest rates on real estate loans to increase. Up to now, interest rates on real estate loans in the US have also increased to nearly 5%.

Inflation and interest rate hikes not only affect real estate but also many other sectors in the economy. As inflation in Europe has risen to a very high 7.5%. For example, German retailer Aldi Nord will increase prices by an average of 20%-50% due to increased production costs. Essential products such as food are often affected and increase in prices the most when inflation is high.

As inflation increases and fiat currencies and USD depreciate, investors need to find a store of value. One of those assets that many investors choose is BTC. US Senator from Wyoming, Cynthia Lummis, recently advocated Bitcoin as a futures currency. She said that currently BTC is like a commodity like wheat, gold, etc. But she fully believes BTC will convert into a store of value asset, a means of payment via the Lightning Network in the near future. future.

Blockchain analysis firm IntoTheBlock says that long-term Bitcoin (BTC) holders are accumulating huge amounts of BTC. The company said that in Q1 2022, investors who held the top crypto asset are now holding nearly 12 million BTC, worth about $551.37 billion. The long-term trust of these addresses eases selling pressure and can help strengthen confidence in Bitcoin as a store of value.

Long-term storage of BTC will put upward pressure on the price as the supply decreases but the demand increases. Then, if BTC rises to a certain point, there will be long-term investors selling BTC. So BTC will always have a share of the market traded and replenished through mining.

Some other information:

  • PayRange, a company based in the Pacific Northwest, boasts a network that includes more than 500,000 vending machines across 350 cities and towns in North America and also has millions of users. This company has added the ability to accept cryptocurrencies. Users can login to their Coinbase account in PayRange App and fund transactions with Bitcoin, Ethereum, Shiba Inu, etc.

  • Intel has announced the details of its upcoming bitcoin mining chip, the Intel Blockscale ASIC, which will ship in Q3 2022. Intel’s chip, with a focus on energy efficiency and sustainability, is up and running. with energy efficiency up to 26 J/TH. The chip maker will supply the ASIC ship to the customer only, instead of shipping a complete mining system as is now common in the industry.

  • Arthur Hayes, co-founder of crypto exchange BitMEX, predicts that ETH will become a 5-digit dollar currency before the end of the year. He expressed confidence that Ethereum will beat the odds to hit the $10,000 mark, a 3x increase from the current price. He also said that this year he will reduce the rate of BTC and buy more ETH, SOL.

  • Ethereum co-founder Vitalik Buterin expressed his concerns about the future of blockchain in a recent interview at the ETHDubai event. Buterin pointed to some of his worries regarding the network, including that it was concentrated by profit-driven players and deviated from his original vision of a balanced platform. Many opinions agree as well as disagree. Some people believe that finance is also a very important factor for a project to develop. Therefore, it is necessary to balance between technological and financial factors.

  • The Dollar Neutrino (USDN), a protocol stable coin of the Waves ecosystem, has failed to hold up against the USD. The USDN is expected to maintain a 1:1 ratio with the USD, having fallen more than 15% to $0.83. Last week, several people accused the Waves team of manipulating the price of its token through the decentralized finance (DeFi) platform Vires.finance. WAVES has surged more than 200% in March, making it one of the best performing coins with a market cap of at least $1 billion. Waves CEO Sasha Ivanov has denied the allegations, accusing Alameda Research of manipulating the wave price and carrying out a hostile media campaign to trigger a panic sale.

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#Financial #Markets #Unsettled #Crypto

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