Bitcoin and ether fell on Sunday, amid a broader decline in cryptocurrencies, in the wake of data showing that inflation in the United States reached its highest level in 40 years. Ether fell as much as 5% to $1,445.56, its lowest level since March 2021, while bitcoin fell to $2,7264.65, its lowest since May 12. Friday’s US inflation data beat expectations, dashing any hopes that the price slump had peaked.
Bitcoin and other cryptocurrencies have struggled in recent months as the Federal Reserve raised interest rates. The majority of currencies declined by rates ranging between 10% and 30%.
Total long cryptocurrency sales topped $100 million for a third day in a row on Sunday, following selling $258 million on Friday and $290 million on Saturday, according to Coinglass data, which translates to a jump of $648 million in 3 days.
After the consumer price index on Friday for the month of May, which exceeded expectations, stocks fell, as the week witnessed a decrease in the Standard & Poor’s index by 5.1%, and closed on Friday at 3900 points, down by 2.9%. Laurie Calvasina, head of US equity strategy at RBC Capital Markets, says the market wants some clear and convincing evidence that the Fed can do this without starting a recession.
Next week appears to be subject to what Federal Reserve Chairman Jerome Powell will say on Wednesday followingnoon, as he briefs the press on the outcome of the two-day central bank meeting. The Federal Reserve is widely expected to raise the federal funds target rate range by half a percentage point, but the hot inflation data for May made markets nervous regarding whether policymakers might be more hawkish, or they would warn of a faster pace of rate hikes. interest in the future.
The Fed will release economic forecasts and expectations for new interest rates, but whatever Powell says regarding rate increases in the summer and fall, might help determine the course of turbulent financial markets. It can cause stagnation.
(agencies)
Tag:
bitcoin
“Nayib Bukele” can’t turn around, can’t go on, is stuck in a snare of Bitcoin
written by Alexandra Hartman Editor-in-Chief
The declaration of Bitcoin as El Salvador’s legal currency under the leadership of El Salvador’s progressive President Nayib Bukele. This was a sensational launch that pushed the law to declare Bitcoin the first legal tender, or Legal Tender, on June 6, 2021, following which the government of El Salvador gradually bought Bitcoin into the system. The latest data, El Salvador currently has a total of 2,301 BTC holdings in Bitcoin.
From Stock2morrow’s point of view, this illustrates the other side of the risks of bitcoin as a national currency. It has been trying to support Bitcoin and push law enforcement to the extreme. by raising the policy to lead El Salvador to become “Bitcoin City” at that time Bitcoin is up Everything looks good Until I forget to look at the picture and say that if it can go up, it can also fall!!!
What if Bitcoin is down? What will happen to El Salvador?
According to research by The Central American University, a survey of 1,270 El Salvadorans, most of whom thought “It’s useless” The people who commented in the survey were divided into
71% of the population consider the Bitcoin Law It did not benefit them at all.
12.8% of the population consider the Bitcoin Law not much benefit to them.
6.1% of the population think the Bitcoin law is helpful. and is very useful to them
About 3.9% of people commented that the Bitcoin law and government investment in bitcoin-related businesses It will become one of the biggest failures of the Nayib Bukele government.
While it seems that most of the people of Salvador will not be satisfied with Mr Nayib Bukele, because following the law has been promulgated It seems that instead of taking advantage of “Bitcoin stream” used to develop the country and solve the problems of the people pushing for various policies that are important to the economy As the propaganda sprayed earlier, It wasn’t as promised. Instead, they use the country’s money to buy more and more bitcoins. continually On the other hand, the country’s economic downturn that can’t open its eyes at all, while the country’s public debt is growing unstoppable. At the same time, Mr. Nayib Bukele himself continued to believe. Bitcoin is not shaken Despite the warnings from the IMF and even the World Bank
However, the research also raises doubts that Part of the dissatisfaction is likely due to negligence in investing. until forgetting to consider the unseen risks that may arise in the future After the price of Bitcoin fell heavily. The question that people leave to the government is “Loss incurred What will the government do next?”
In view of the damage caused by the risk of entering the government’s investment Consistent with research from www.nber.org, the country is “fail” from the use of bitcoins Because most people do not interact with Bitcoin at all, including the ecosystem that the government is trying to create. Whether it’s a Chivo app wallet or a Chivo ATM installed across the country. In fact, people who have access to less than 10% of the total population of the country. which caused the following doubts that What hidden implications does Nayib Bukele’s attempt to push back once morest the legal use of bitcoins? Contributing benefits to certain capital groups through complex benefits Which is difficult to verify?
Meanwhile, the major Middle Eastern media outlet Al Jazeera reported that President Nayib Bukele has gone to great lengths to create a Bitcoin urban climate, including enacting legislation, building ATMs for Bitcoin, and trying to get local merchants to accept Bitcoin instead of the nation’s paper money.
But on the other hand, what is worrying is that the country’s debt is above 50% of GDP and continues to tend to rise. make a small country El Salvador tried to borrow up to $1.3 billion from the IMF, but the IMF rejected it because it felt uneasy regarding El Salvador trying to get money into the country. Instead, it will lead the country to place its hopes on becoming a Bitcoin City instead, which reflects these concerns. They think that if Bitcoin continues to fluctuate continuously The country is inundated with debt and the economic crisis in the country is deteriorating. In addition, the world’s largest financial institutions close the door for loans El Salvador’s exit Where will you turn? Because of the reflection of the multiverse parallel world El Salvador projected into a picture of Venezuela from the past. began to appear more clearly
$59 billion evaporated within hours… Bitcoin records new losses!
written by Alexandra Hartman Editor-in-Chief
Cryptocurrency trading platforms returned to the red color, led by “Bitcoin”, which recorded losses of more than 5% in the last 24 hours of trading, following only 24 hours of climbing.
Cryptocurrencies have been suffering since the Federal Reserve announced an increase in the interest rate on the dollar, which prompted many investors to withdraw their money from “Bitcoin” and pump it into the dollar to take advantage of the high interest rate, especially amid expectations of continued market losses..
In terms of trading and during the past 24 hours, the combined market value of cryptocurrencies decreased by 4.6%, causing the market to lose regarding $59 billion, following the total market value declined from the level of $1280.2 billion in trading yesterday, Monday, to regarding $1221.2 billion in trading yesterday morning. Tuesday.
At the top of the losing digital currencies, “Bitcoin” came, as it recorded during the past hours a decline of 5.7%, compared to weekly losses of 6.2%, to be traded in today’s trading at the level of $29,629..
Its combined market value also fell to the level of 564.4 billion dollars.
The “Ethereum” currency, which ranked second in the list of the largest cryptocurrencies by market value, recorded losses during the past hours by 7%, compared to a weekly decline of 10.2%, to be traded in today’s trading at the level of 1767 dollars..
Its combined market value fell to $214.1 billion.
While the “Tezer” coin, which came in the third place among the largest digital currencies in terms of market value, stabilized at the level of one dollar, the combined market value stabilized at the level of 72.37 billion dollars..
The “USD” currency, which came in fifth, also stabilized at the level of $ 1, while its total market value stabilized at the level of $ 53.7 billion..
While the “BNP” currency ranked fifth among the largest cryptocurrencies by market value, the currency recorded losses during the past hours by 8.4%, compared to a weekly decline of 11%, to settle its price in today’s trading at the level of 284.12 dollars..
And its combined market value fell to the level of 46.4 billion dollars.
Michael Saylor Indebted $2.4 Billion After Buying Bitcoin As Crypto Market Goes Abyss
written by Alexandra Hartman Editor-in-Chief
Michael Saylor, Executive Director of MicroStrategy (MSTR), a well-known investment strategy and planning firm. Revealed the investment balance sheet in August 2020 that poured funds into the purchase of Bitcoin coins, which is the latest. CNBC’s Kate Rooney Reports MicroStrategy’s Bitcoin Acquisition That includes more than $2.4 billion in debt. After the inflation crisis and measures to raise interest rates by the Fed Destroys the crypto market
MicroStrategy Famous investment strategy and planning companies Founded by Michael Saylor in 1989, it was revealed that following making his first Bitcoin purchase by converting $250 million in cash into a 21,454 BTC holding, he added: The company has been steadily accumulating Bitcoin, most recently with more than three times the volume of its initial purchase over the past two years. The company currently holds $3.8 billion worth of bitcoin at current prices. That dropped nearly $6 billion from value in December 2021 following all investment markets. CNBC’s Kate Rooney reports that MicroStrategy’s Bitcoin acquisition has been volatile. That includes more than $2.4 billion in debt.
However, the debt amounted to 1.7 billion dollars. in the form of a convertible banknote At interest rates between 0% and 0.75%, while the company is also taking on $500 million in secured notes. It carries an interest rate of 6.1%. Its latest debt is the first bitcoin-backed loan with a bitcoin value of $205 million in April. at an interest rate of regarding 4%
In addition, MicroStrategy may face costs in connection with the potential collateral claim. After the last purchase, if the Bitcoin price falls below $21,000, however, Although the company’s stock is weak, Michael Saylor has previously said the company has “enough Bitcoin as collateral” and believes that “In unreliability, only Bitcoin is trustworthy.”
The Bitcoin price, which is hovering around $31,286 at the time of writing, is up 4.3% in the past 24 hours and more than 6% during the week’s rebound. However, BTC/USD is down more than 13%. Over the past 30 days, it is still down more than 54 percent from its all-time high in November 2021. MSTR shares, on the other hand, were trading at $235.71 on Monday, up 7.6 percent compared to the previous month. Still, it was down more than 57% year-on-year, reflecting a negative outlook with unreliability.
MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company might post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx— Michael Saylor⚡️ (@saylor) May 10, 2022