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The past week will be remembered by cryptans for the growth of bitcoin above $27,000, another round of the banking crisis in the United States and the release of a new version of the ChatGPT chat bot. Cryptons, rejoicing in the bull market, joked and posted memes, and the most relevant got into our weekly digest.
The first cryptocurrency this week again tightened up and took another peak. Even two. On Monday, the price of digital gold broke through the $26,000 mark after the release of data on the weakening of inflation in the United States. At the same time, Bitcoin has overcome the key level of the 200-week moving average, instilling confidence in the cryptans in tomorrow, as well as the day after tomorrow.
On the same day, there was an adjustment in the difficulty of mining in the Bitcoin network. The indicator rose by 1.16% and set another high. This means that the network is well protected, but miners are still having a hard time, as the price of bitcoin is far from its records, and computing requires significant power.
A short summary of this week’s events
By the end of the week, the decision to inject money into the US banking system, which was made urgently after the collapse of two (almost three) major banks, pushed Bitcoin to new heights. On Sunday, Bitcoin was already quite firmly entrenched at $27,000.
Analysts are talking about the next stop being $28,000-$30,000.
— Hey, pigeon, why don’t you fly?
– I don’t need to. I bought a cue ball in 2009 and now I have a helicopter
US banking crisis
Signature Bank, which major exchanges moved their fiat operations to after the collapse of Silicon Valley, was forced to shut down due to “systemic risks” on Monday. At the same time, in order to avoid unpleasant situations and risks, the bank’s management was immediately dismissed from work (after all, the experience with Sam Bankman-Freeid taught the American authorities something).
Top managers of Signature were unpleasantly surprised when they learned that they had lost access to the management of the bank. The company faced a sharp outflow of funds due to the panic surrounding the closure of the Silicon Valley bank, but the situation had every chance to stabilize.
On the same day, the media learned about the introduction of the US Federal Reserve’s Term Bank Financing Program (BTFP), which, according to conservative estimates, could inject $2 trillion into the country’s banking system.
When you tried to choke crypto but ended up crashing your fucking fiat system
Cryptons noticeably cheered up – after banks once again showed their insolvency, investors began to transfer part of their assets to crypto.
Banks right now: “Does anyone want to open a deposit?”
The former head of the BitMEX exchange, Arthur Hayes, said that the injection of money will bring us a normal such bull market. He even called the new liquidity flow “the most important financial event since the coronavirus.”
While some banks closed, others tried to stay afloat. Cryptocurrency bank Anchorage Digital has decided to cut staff costs by laying off 20% of employees – that’s 75 people. Uncertainty around regulation in the US and market volatility were cited as reasons for the mass layoffs.
Kriptan, remember: fiat can take you to hell. Worst case, down the drain.
Technology and culture news
The most important event in the world of technology was the long-awaited update of the popular chatbot. OpenAI has introduced GPT-4, which uses artificial intelligence (AI) technology to provide answers to various questions, as well as write poetry and create computer code. The chatbot also identified a number of vulnerabilities in the security system of the Ethereum active smart contract and indicated the areas where this contract can be used.
Two disturbing news came from the social media giant Meta*. The company decided to abandon the development of projects related to unique tokens (NFTs). NFTs lived on the platform for less than a year and were abandoned by management due to the financial crisis and the desire to cut costs.
The next day, Zuckerberg promised to lay off another 10,000
loafers employees by declaring the current year as the “Year of Efficiency”. Within the Year of Efficiency, three waves of layoffs will follow, affecting the recruiting department, technical specialists, and other poor people.
New version of the Meta logo
The growth of bitcoin, and with it the rest of the market, gave rise to talk about security in the cryptocurrency market. Ethereum co-founder Vitalik Buterin spoke in detail about how to store crypto so that it does not become a source of frustration for you.
* Meta’s activity is recognized as extremist, banned in Russia by decision of the Tverskoy Court of Moscow dated March 21, 2022.
#bullish #rally #banking #crisis