Market in Red, Fed Meeting Next Week

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2022-07-20 12:29:44

Market situation

Over the past day, the price of BTC has dropped to the level of 38,000 USD. Altcoins also fall to the beat of BTC.

The US stock market also fell sharply in all three indexes. Nasdaq still saw the biggest drop of 4.17%, a drop comparable to the 2008 crisis.

The crypto market’s greed and fear index is at 22, which is extremely fearful. And this index in the stock market in the near fear zone turns to extreme fear.

The next Fed meeting on May 4-5 will take place and decide on a rate hike after the meeting. The market seems prepared for the Fed to raise interest rates. Fed futures on CME also show this, with 98.5% of investors thinking that the Fed will raise interest rates by 0.5%.

Regarding BTC, the rate of BTC profit dropped to more than 60% when BTC price was at $37,716. This profitable BTC level is at a low level, equivalent to the time of BTC $7,000 in April 2020.

However, BTC continues to be the trend of withdrawing more from the exchange than depositing even though the price is still moving sideways around 38,000 USD. This is a sign of long-term investors accumulating BTC and putting downward pressure on the amount of BTC on the exchange.

Two exchanges that tend to reduce the amount of BTC traded on the exchange are Huobi and Coinbase. As for the Binance exchange, which is said to have more retail investors, there is an increase in the amount of BTC on the exchange.

Miles J Creative’s share also shows that the amount of BTC that hasn’t moved in over a year has hit a new high. The former shows that when the accumulated amount of BTC increases, it puts pressure on the market after a while the price of BTC increases.

Thuan has invested for many years and one coin can be bought and held for five years, then Thuan chooses BTC. In order to invest in a steady price average and be successful in investing, Thuan is always working, protecting sources of income unrelated to investment.

Bitcoin is worthless to whom?

Veteran investors like Warren Buffett, although he only believes in investing in company stocks, he still talks about BTC. He no longer says BTC is a scam but he still doesn’t invest in BTC because BTC doesn’t generate income like companies do. Nor does he invest in gold or collectibles. Warren’s investment philosophy only invests in what you don’t understand and believe in. Or famous investor Charlie Munger also criticized BTC and did not invest in crypto. These two investors are heavily invested in bank stocks, so the success of BTC for them makes no sense. Although these two investors are very successful, they also missed the opportunity to invest early in a series of technology companies such as Amazon, Facebook, Google, … and these companies are very successful.

As we can see, the views on investment of each generation will be very different. Warren Buffett comes from a time when there was no technology. As for today’s young generation, they were born in a time when technology was booming, so the trend of choosing investment assets also changed. Billionaires 20 years ago were mainly traditional investors in companies, supermarkets, real estate,… But until now, the world’s top billionaires are mainly billionaires. technology rich.

Therefore, investment needs to be flexible and change appropriately according to the time and trend of socio-economic development. And whether an investment or property is valuable or not will depend on the object. Like Warren Buffett’s assessment of investing in BTC has no value just not worth it to himself.

Bitcoin is just over 11 years old, but the long-term BTC price and capitalization is still bullish so far. BTC and crypto have also gone from being deprecated, criticizing leading countries to change their minds and seriously evaluate. There are countries that accept BTC as legal currency. Large companies in the world today such as Microstrategy, Tesla, Galaxy, … have invested and held BTC.

New bill in favor of BTC and crypto

Democratic Senator Kirsten Gillibrand (D, NY) and prominent crypto-pro-Senator Cynthia Lummis (R, WY) have drafted a proposal to exempt crypto income under $600.

A comprehensive new bill amending crypto income tax reporting has been proposed by two US Senators to address proper government oversight of cryptocurrencies, stablecoins, and protect people. consumption.

The bill also states that “some cryptocurrencies are commodities, others are securities.” Lummis believes that most cryptocurrencies are commodities that should be regulated by the Commodity Futures Trading Commission (CFTC). ). The rest of the cryptocurrencies that are considered securities should be regulated by the Securities and Exchange Commission (SEC). The bill says that crypto should be regulated by both of these agencies.

The third article of the bill argues that stablecoins should not be regulated like banks. Because stablecoins work differently and are important to crypto. If we see stablecoins as banks, we need to give more perks to companies. Stablecoins do not do the same thing as banks and are not intended to be banks. At the same time, it is advisable to look at the stablecoin industry more holistically. Senator Lummis voted to delay the launch of a central bank digital currency, advising that CBDCs should only interact with the central bank, not the consumer.

Some other information:

  • Former Google CEO and President Eric Schmidt talked about crypto and Web3 investing in an interview with CNBC. The former Google CEO with a net worth of $22.8 billion, revealed that he has invested “a bit” of money in crypto. He added that he finds the economics of Web3 “interesting,” noting that the platforms and usage patterns are interesting.

  • A recent study by crypto exchange platform Bitstamp shows that institutional investors are actively recommending digital assets to their clients. The Bitstamp Crypto Pulse report, which surveyed more than 5,500 professional investors and 23,000 retail investors from 23 countries globally, revealed that the majority of investment decision makers are institutions that are validating their assets. Crypto assets are investments for their customer base. According to the research, 68% of surveyed institutional investors say that they are actively recommending cryptocurrencies while 15.2% say they are doing so cautiously. Only 6.4% say they do not recommend virtual assets to their clients.

  • Solana’s network went offline for seven hours after what one insider called a “crazy amount of data” flooded the relevant proof-of-stake chain, causing validators to fail to reach consensus and halt block production. Bots have flooded the popular (NFT) application called Candy Machine creating a large amount of NFT causing network congestion and causing this offline situation.

  • ApeCoin (APE) has lost almost 40% in just three days. Prior to that, investors purchased APE to purchase its Anotheride Metaverse lands, dubbed “Otherdeed”. However, NFT will have a flat price of 305 APE, or $5,250, contrary to expectations that the company will sell the metaverse plots by auction. As a result, the disclosure may have reduced the need for people to hoard more ApeCoin tokens, resulting in a decrease in demand.

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