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The past week will be remembered by cryptans for yet another Bitcoin drain (as always, the US Federal Reserve was to blame), new MicroStrategy investments, and the Moscow Exchange’s fantasies about how to issue receipts instead of cryptocurrencies. Cryptons, despite the catastrophic situation on the market, continued to joke and post funny pictures. We have collected the best and most relevant in our weekly digest.
Bitcoin started the week with high volatility. The first cryptocurrency was in a fever in anticipation of a meeting of the US Federal Reserve on the next increase in the key interest rate. On September 18-19, the asset rate first fell by 9%, and then rose by 7%. At the same time, the minimum of September 7 was updated – at night, the price of bitcoin fell to $18,223.
Analysts have expressed confidence that the Fed will follow the planned course and will not relax its policy, so it is better for cryptans to refrain from trading with leverage and prepare clean underwear.
And the head of the US Federal Reserve, Jerome Powell, did not disappoint – firstly, he raised the key rate by 0.75% for the third time in a row. And then he delivered a speech, which was followed by another impressive collapse of the markets. Powell said the current rate hike to 3.25% is justified as the Fed is determined to bring inflation down.
even if everyone around takes a break from hunger.
The head of the Fed also admitted that inflation indicators exceed forecasts, that is, they do not adequately respond to the tightening of monetary policy. So until the end of the year, the key rate will increase.
Jerome Powell outlines the prospects for the cryptocurrency market
But there is good news – further rate hikes are likely to lead to a recession, which will force the Fed to ease policy. And then, if, of course, we live, we will see a new bull market.
Michael Saylor continues to believe and invest in bitcoin
Against the backdrop of another wave of panic, the former head of MicroStrategy once again proved his devotion to the first cryptocurrency. Michael Saylor, now solely in charge of the company’s bitcoin strategy, purchased another 301 BTC. Obviously, he likes round numbers, as the last purchase brought the amount of bitcoins in the MicroStrategy wallet to 130,000.
But Sailor did not stop there, but gave another interview in which he said three important things: firstly, in the next four years, bitcoin will exceed its all-time high. Secondly, in the next ten years, the first cryptocurrency will cost $500,000. And Sailor himself personally owns 17,732 BTC, which he purchased at a price of $9,500 two years ago. So for the foreseeable future, we might see a truck overturning on our street with high crypto prices.
Russia and its difficult path to the cryptocurrency future
The Moscow Exchange has submitted a draft law on the issuance of receipts for digital financial assets (DFA) to the Bank of Russia and the Ministry of Finance for consideration. It has long been known that the citizens of Russia should not be trusted with cryptocurrency, because they will treat it like a glass dildo – either they will break it, or they will cut their hands, and in extreme cases they will simply lose it. Therefore, the Moscow Exchange proposes not to set up experiments, but to store the CFA with specially trained people. Instead of CFA, clients will be issued paper receipts, where it will be indicated that they own certain assets in the distributed ledger.
Another interesting news from Russia was shared by the director of the financial policy department of the Ministry of Finance Ivan Chebeskov: it finally became clear what will happen with the taxation of the crypt – the process of exiting the crypt into fiat will be taxed. However, the Ministry of Finance is haunted by one nuance: it is necessary to come up with a way to force miners to sell cryptocurrency immediately, so that they can wait for a better price without replenishing the treasury with rubles.
Binance CEO Changpeng Zhao once again spoke about crypto winter. The head of the exchange is a wealthy person, so he can’t understand why everyone is so alarmed – the cryptocurrency market follows its unwritten laws, according to which periods of rapid growth are followed by long periods of decline and calm. And you should not worry at all: such cyclicality is a sign of a healthy emerging market.
An untranslatable pun meaning the state of the crypto portfolio after a long crypto winter
Zhao says that it is time for investors to learn not to look at the cryptocurrency rate as an indicator of the state of the cryptocurrency market. Instead of crying over your portfolios, you need to pay attention to the number of people buying and using cryptocurrencies, as well as the growing number of blockchains and Web 3.0 projects.
And to cultural news
The Ministry of Science and Technology Development of South Korea (MSIT) is going to develop new laws to regulate the metaverses. Thus, South Korea will be the first country to control this new technology sector and take care of its development at the state level. The South Korean authorities are interested in the metaverses not only in words – in February, the country invested $ 186.7 million in the development of the national virtual world.
And for those who want to learn more about the metaverses, we have prepared another popular science longread about their potential in the field of education.
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