Once again, macroeconomic factors have been driving the markets over the past week. While bitcoin seemed to finally be regaining ground, last week’s job report put a damper on this trend. As is often the case in the markets, good news is bad news for investors. The report showed the addition of 263,000 jobs in the United States, illustrating the relatively stable strength of the American economy. For markets, however, this primarily suggests further hikes in interest rates, which create downward pressure on asset prices. Bitcoin was no exception to the trend.
This is a new pivotal week for price direction for the next few weeks. To date, investors are eagerly awaiting the September Producer Price Index, an indicator of wholesale final demand prices. . Minutes from the Federal Reserve’s September meeting will also be released later in the day, providing additional insight into the Fed’s stance for the end of the year. More importantly, the September Consumer Price Index will be released tomorrow, which will check whether inflation is finally starting to decline. This will be the last figure before the Fed decides on the next rate hike in November. In short, if no consensus is established on the height of this increase, it risks becoming clearer in the next 48 hours. Add to that the season of earnings at our door and we will soon know if we are reaching a tipping point, or if there is likely to be more bearish action on the menu.
We were only mentioning last week that this could be a possibility with the new mode of consent proof of participation. This has been confirmed in recent days. Ether’s token supply is now officially deflationary. Words that startle when inflation has been on everyone’s lips for a year! Since Saturday, the cost and volume of gas tariffs have started burning more ETH than were created at one time staking – the post-merger process through which ETH is now generated. Since then, the total amount of ETH in circulation has decreased by 4,001 ETH – and continues to decline – as the burning rate continues to exceed the ETH creation rate. In a more positive global environment, this reality will undoubtedly be perceived as attractive by investors. In the short term, however, the price has remained stagnant.
On the network side forked having tried to keep the proof-of-work consent mode, it cannot be said that things are improving. After hitting a high of over $ 45 when the project launched, the price of the ETHW token is stagnant, down … 83%. All indications are that we will see a repeat of Ethereum Classic versus price balance versus ETH mainchain.
Interesting news that shows that despite the slowness of the markets, the establishment of cryptocurrencies continues to progress. Google now provides Ethereum address data through its search engine. The world’s largest website now tells you how much ETH certain wallets hold when you type an Ethereum address directly into the search bar. This new feature works via the Etherscan block explorer, a website that provides data on the Ethereum blockchain.
Google really seems to be on the verge of entering the world of cryptocurrencies. The company has just selected Coinbase on which to make payments clouds in cryptocurrencies and will use its custodian tool. Coinbase, which derives most of its revenue from customer transactions, will transfer its data-related applications to Google from the cloud Amazon Web Services, market leader, on which Coinbase has relied for years. As a result, Coinbase shares were up 8.4% during Tuesday’s session.
The Securities and Exchange Commission once again blocked the launch of an exchange-traded fund stain on bitcoin in the United States. Specifically, the SEC ruled that the exchange failed to prove its WisdomTree Bitcoin Trust it would be “designed to prevent fraudulent and manipulative acts and practices” while protecting investors and the public interest. This decision follows two postponements of the decision on the company’s application in March and August and the rejection of a previous application by WisdomTree in December for the same reasons. Grayscale received a similar explanation in May after the commission rejected his long plea to convert him confidence in a spot ETF. CEO Michael Sonnhenshein then decided to take action against the SEC. “The SEC does not apply consistent treatment to similar investment vehicles and therefore acts arbitrarily and capriciously, in violation of theLaw on administrative procedure And Securities Exchange Act of 1934Grayscale’s legal counsel said at the time. In short, it seems increasingly obvious that 2022 will not be the year of the launch of such a product, however expected it may be!
The European Union has tightened restrictions on Russia with the eighth round of sanctions introduced late last week. What does this have to do with cryptocurrencies? These new measures have effectively tightened bans on cryptocurrency assets and transactions. The EU now bans all cryptocurrency wallets, accounts and custody services. Previously, wallets and accounts could hold up to $ 9,701 in cryptocurrencies.
13 years ago – and we should only be writing 13 years – the website New standard of freedom became the first to allow the buying and selling of bitcoins. Transactions were made possible through the PayPal payment processor. The trading price was simply based on the average mining cost of one bitcoin. It was then possible, as this old screenshot shows, to buy 1,579 BTC for $ 1 USD. A dollar that would be worth more than $ 30 million today. Sometimes it is good to remember how far we have come from the beginning of the decentralized project!
We look forward to next week’s update, when we should have gotten plenty of answers to the currently open questions. In the meantime, we are back on the defensive, with only half of the fund’s capital exposed to BTC.
This article was brought to you by Fonds Rivemont. The Rivemont cryptocurrency fund is the first and only actively managed cryptocurrency fund in Canada. Suitable for RRSP and TFSA. Accredited investors can find out more here.
Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..
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