The latest news on crypto, blockchain and Defi

Investors’ attention in all the different markets is focused on one thing today, the US Fed’s decision on future interest rates. There is almost consensus on an impending increase of half a percentage point. The central bank is also expected to launch a program to reduce its huge bond portfolio by $ 95 billion a month from June. It is the signals that will be sent for the future that will have the greatest impact on the markets. Will we prepare people for even steeper increases in the short term – including a possible increase of 0.75% – or will we stick to the latest projections? One thing is for sure, while bitcoin remained extremely correlated with the US stock market again this week, the digital asset will have another chance to decouple and shine like a safe haven in an inflationary environment. If we’ve been hoping for this scenario for a long time, we’ll not hold our breath …

The latest news on crypto, blockchain and Defi
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Paul Tudor Jones, who has publicly defended digital currencies as an investment tool in the past, was particularly pessimistic about the stock and bond markets. In an interview with CNBC yesterday, he said: “Obviously you do not want to own bonds or stocks, you start with that. The situation will be very, very negative for both of these asset classes. You can not imagine a worse macroeconomic environment than we are in now for financial assets. ” The latter added that the United States entered “uncharted territory” by raising interest rates during a period of tightening of the Financial Conditions Index (FCI). In short, if it is part of the future of bitcoin to become a safe haven in times of inflation, we could not imagine a clearer crossroads for the transition to manifest itself.

How much would you pay for all the bitcoins in the world? “Less than $ 25” was Warren Buffett’s response to Berkshire Hathaway’s annual shareholders’ meeting. Was the legendary investor stung by the fact that BTC’s total capitalization exceeded that of his investment company? One thing is for sure, the man can not perceive the asset from any angle other than a listed company. “If you told me you own all the bitcoin in the world and offered it to me for $ 25, I would not take it,” Buffett said. “What should I do with it?”. In contrast, Buffett said he would buy some of the country’s farmland or some of the country’s apartments. He reiterated his view that bitcoin is worthless because it produces nothing. His longtime business partner, Charlie Munger, goes a step further. “In my life, I try to avoid things that are stupid, bad and make me look bad compared to someone else,” Munger said. “Bitcoin does all three. And third, it makes us look like fools to the Chinese communist leader. He was smart enough to ban bitcoin in China,” Munger concluded. “It’s not surprising that the market does not notice these It must be said that an investor who takes China’s example to defend his point will not receive big ovations!

On September 7, 2021, El Salvador was the first country in the world to adopt bitcoin as a legal tender. The Central African Republic, the second least developed country in the world according to the UN, has just followed suit and has adopted bitcoin as its official currency along with the CFA franc and legalized the use of cryptocurrencies, the presidency announced on Wednesday. The country is proud to be the first to do so in Africa. Obed Namsio, Chief of Staff of President Faustin-Archange Touadera, described this approach as “a crucial step towards opening up new opportunities for our country”. Possibilities for who exactly one can, however, ask. Internet coverage in the Central African Republic is only 11%. The government may have been told that this will increase payments in the country, but it is unclear how yet.

If the price of bitcoin remains in a downward trend without visiting the low prices in 2022, the difficulty of the network will continue to break records. Historically, a positive correlation has emerged between the two data. Bitcoin reaffirmed its position as the most attack-resistant blockchain, setting a new record in network difficulty for the second time in April, rising from 28.587 trillion to 29.794 trillion. Larger networking difficulties require greater computing power to be able to mine a bitcoin block, which prevents bad players from taking over the network and manipulating transactions, known as double spending.

Basic indicators are just as encouraging on the side of Ethereum, the second largest chain in terms of global capitalization. The Eth2 custodian contract now holds 10% of the circulating supply of ETH. Remember that all this Ether is no longer available to its holders, the contract can only be unlocked after switching to consensus mode proof-of-effort. This proof-of-stake deposit contract on the Beacon chain actually reached a balance of 12 million ETH on Friday. The total fixed value of Ether in the Eth2 contract is approximately $ 34.5 billion. Network developers began testing in December. However, the provisional merger date of June 2022 has been postponed once again without any future date being proposed.

Twitter announced this week a partnership with payment processor Stripe that will try to test a way content creators can receive cash in cryptocurrencies. This test will take place in 120 countries later this year and will include Ethereum integration and compatibility with multiple virtual wallets. After receiving cryptocurrency payments, content creators can choose to save the amount on the Polygon network or exchange it for another currency.

FIFA on Monday secured the first new US sponsor of the 11-year-old men’s soccer world championships and signed an agreement for this year’s tournament in Qatar with blockchain technology provider Algorand. It is also a “technical partnership” to help FIFA develop a digital assets strategy, the World Sports Agency said. It could help FIFA market non-fungible football-related tokens. The digital asset rose almost 20% relative to bitcoin before instantly losing most of that progress.

Bitcoin appears to be in the final stages of an underestimation of a bear market, suggests a popular technical analysis indicator. Bitcoin’s Mayer multiple, which is the ratio of the price of cryptocurrency to the 200-day simple moving average, is just below 0.80. In other words, the cryptocurrency trades at almost 20% off its 200-day simple moving average. Such a price structure has been relatively rare in bitcoin’s 11-year history, making the 0.80 reading on the Mayer multiple a point of underestimation. “We have established a Mayer multiple of 0.8 as the historical level of undervaluation. The basis for this is that less than ~ 15% of bitcoin’s lifetime has been at or below this level, giving a more likely view,” he wrote. Glassnode analyst James Check in a weekly analytics newsletter released on Monday, it is still unknown whether the bearish pressure on the stock markets will continue to pull bitcoin lower in these circumstances.

One thing is for sure, despite the correlation to NASDAQ hitting its lowest level for the year in recent days, bitcoin is showing some resilience at its current trading levels. If the bullish push in the cycle that takes BTC north of $ 100,000 has not materialized, so can the capitulation event. In short, a scenario of “rounding of the bottom” could instead take shape.

On the fund side, we will continue to be in a defensive position, at least until the effects of today’s Fed decisions become known.

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Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..

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