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Over the past day, Bitcoin has recovered slightly to around $30,000 and then dropped back to around $29,000. Altcoins have generally fallen over the past few days.
Stocks ended Friday’s session with a slight gain after several days of sharp declines. Oil futures rose to $110 per barrel. And gold fell to 1808 USD/ounce.
This past Friday, Elon Musk tweeted that he had decided to pause the Twitter acquisition while researching to see if the number of fake/spam accounts on Twitter is really just 5%, as the company claims. father long ago.
The last tweet involved Elon Musk said that he is still committed to the acquisition. If Musk gives up on buying Twitter, it will cost him $1 billion in fines and the Twitter company could sue him for breach of contract.
Shares of Robinhood jumped 24.9% on Friday after news that Emergent Fidelity Technologies had purchased a 7.6% stake in Robinhood for $648 million. At the same time, the person behind Emergent Fidelity is also the CEO of major electronic exchange FTX. This is news that affects both the US stock market and crypto.
Crypto has gone into winter
Besides, some like Benjamin Cowen, Ben Armstrong and Leon Fu shared on Twitter that the market has entered crypto winter (bear market). Many other famous people have similar views. A small survey on Thuan Capital’s website shows that more than 60% of the participants also think that crypto winter has come.
This drop in BTC has two points that are different from the time of the market drop in May 2021. First, the price of BTC dropped below $30,000 and the market panic sold causing BTC price to be pushed lower than last time at more than $25,000. The second important thing is the high inflation economy and the Fed raising interest rates. The risk of a possible financial crisis could affect all markets including crypto.
At this time, there was high inflation, the Fed raised interest rates and the first quarter had negative growth. However, the unemployment rate is still low. If the unemployment rate is getting higher and higher, then it will be a sign of a higher financial crisis.
Chairman Powell also affirmed that controlling inflation may cause some economic difficulties but remains the top priority of the Fed. He also said that a so-called soft landing for the economy can’t be promised as the Fed raises interest rates to contain price growth that is near its fastest pace in more than 40 years. And getting there right now is very difficult. These statements of the Fed also made investors more worried about the risk of financial crisis.
The number of Americans filing new claims for unemployment benefits unexpectedly increased last week. But this figure has not changed significantly in labor market conditions, with labor demand soaring and shortages rampant. Initial state jobless claims increased by 1,000 to a seasonally adjusted 203,000 for the week ending May 7. That growth remains low for the Fed.
The CEO of MicroStrategy, Michael Saylor also shared his view on the current market. Currently, his company holds the largest amount of BTC of any publicly traded company that invests in BTC. ng believes that bitcoin is the last, best hope for creating an economy independent of the machinations of politics, central banks, and connected investors who systematically attempt to make money. benefit themselves at the expense of ordinary people.
During the economic downturn due to external factors, Saylor directed MicroStrategy to continue buying bitcoin regardless of the price. While his company stores BTC and the price is currently below average, other companies in the market also store other assets. The one that most companies store there is the stock of the company. In the current economic situation, the stocks of companies have also fallen sharply and their investment is no different from MicroStrategy’s situation. So he has nothing to worry about for now and will continue to store and invest more BTC when the opportunity arises.
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