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For the third week in a row, bitcoin is at exactly the same stage as this is being written. The latter is struggling to stay north of $ 20,000. As was the case in the same period, it achieves this when the NASDAQ experiences a bullish day, while returning below this threshold in the opposite case. In short, the same context continues in an overall macroeconomic picture of uncertainty driving markets.

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The fall of the last few months in the cryptocurrency market continues to take its toll. In fact, after the giant investment fund in Singapore Three arrows capital filed for bankruptcy last week, it’s the Canadian company’s turn Trip to follow suit. The Toronto-headquartered company filed for Chapter 11 bankruptcy protection in the Southern District of New York on Tuesday, estimating that it had more than 100,000 creditors and assets of between $ 1 and $ 10 billion. It also recorded the same interval for its liabilities. The two bankruptcies have a direct connection. According to information collected by Frances Coppola, Voyager’s loan portfolio accounted for almost half of its total assets, and almost 60% of this portfolio consisted of loans to Three arrows.

Following the announcement, CEO Steven Ehrlich announced that “customers with crypto in their account (s) will receive a combination of the crypto in their account (s), proceeds from the liquidation of 3AC, ordinary shares in the newly reorganized company and Voyager tokens”. Celsius has CoinLoan, CoinFLEX and Voyager themselves all announced restrictions or direct stops for payouts in recent days.

Speaking of Celsius, according to blockchain data, the firm has repaid $ 183 million of its debt to the decentralized exchange maker. The most plausible hypothesis is that the goal is thus to recover collateral linked to bitcoins, which would otherwise remain blocked. The transactions resulted not only in the termination of the debt, but also the release by Maker of 2,000 wrapped bitcoins worth $ 40 million, which had been deposited as collateral according to the data.

Peter Schiff, a longtime proponent of gold as an investment and a major critic of cryptocurrencies, faces a particularly ironic situation. In fact, the bank in Puerto Rico, which he partially owned, was shut down by regulators for failing to maintain the minimum net capital requirements. The main interested party continued with a tirade on Twitter, criticizing the key decisions that led to this conclusion and his inability to handle the situation, leaving him completely vulnerable to external actors. While acknowledging that “customers stand to lose money”, Schiff said he was unaware of regulatory minimum requirements and was not presented with any legal notice prior to the sudden shutdown. The crypto-society has not failed to point out the incredible irony that the economist is a victim of the structures of centralized finance, he who continues to condemn his opposition.

A national stablecoin no longer seems to be a short-term priority in the United States. At a conference on Tuesday on the international role of the dollar, economic advisers and Fed bigwigs discussed digital assets, and whether a CBDC could benefit the country. Panelists generally agreed that technology in itself would not lead to radical changes in the global monetary ecosystem. The idea is that countries can become cashless while increasing security and speeding up payments. However, the central bank of the world’s largest economy has repeatedly said that it is only in exploration mode for a digital dollar. Tuesday’s conference seemed to confirm that there was no hurry to develop one.

The biggest supporters of cryptocurrencies are not backing down from the recent fall in prices, on the contrary. Undeterred by the losses from his strategy of using public funds to invest in bitcoin, El Salvador President Nayib Bukele announced last week that he had spent an additional $ 1.5 million buying 80 BTC for $ 19,000 each. . “Bitcoin is the future, sell it low,” he said.

The strategy of accumulating bitcoins after massive declines has also been copied by other long-term bitcoin investors. Michael Saylor, CEO of MicroStrategy, recently announced a new $ 10 million purchase of bitcoins, bringing his company’s cash up to $ 129,699 BTC to an average price of $ 30,664. That’s about $ 1.3 billion in losses, but like Bukele, Saylor doesn’t seem overly concerned about bitcoin’s short-term fluctuations.

As mentioned at the beginning of the Communication, macroeconomic factors currently appear to be driving all world markets. So what fundamentals can have a real impact on prices? There is no doubt that the next expected data for all will be the US consumer price index next Wednesday, which will provide an updated picture of inflation. This will be followed by the Fed’s rate hike decision at the end of the month. An increase of 75 points has already been practically announced, unless next week’s data surprises and changes the decision. So on July 28th Bureau of Economic Analysis (BEA) from the United States will release a preliminary estimate of US GDP for the second quarter of 2022. After recording a decline in GDP of -1.6% in the first quarter of 2022, GDPNow tracker The Federal Reserve Bank of Atlanta now predicts that GDP growth will decline by -2.1% for the second quarter of 2022. A second consecutive quarter with a decline in GDP would put the United States in a technical recession.

Technically, bitcoin trades in a gradually narrower consolidation channel. Breaking through $ 20,900 could quickly allow the price to retest levels around $ 23,000. On the downside, bitcoin continues to find a good amount of buyers under $ 19,000.

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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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