Markets fluctuate. It’s natural. Buyers exert upward pressure. Sellers exert bearish pressure. And these swings in the price are related to the different changes in sentiment. Namely, the available information is interpreted. Then, various narratives are formed. These narratives form expectations. And expectations determine decisions.
Of course these “interpretations” are not always rational. In many cases, investors take their wishes, aspirations and assumptions to create a fantasy. And, for a time, the fantasy can become a self-fulfilling prophecy. Afterwards, the market recognizes their “exaggerations”. And try to pick up the error of judgment.
Right now, we are in corporate reporting season in the United States. During the week of the banks, with better results than anticipated, a wave of optimism invaded the markets. We cannot say that the results were good per se. In fact, the drop in income for the big banks was significant. However, much worse was expected. Then, due to cognitive deception, “not so bad” was interpreted as good.
This honeymoon lasted very little, because, shortly after, the reports from the big technology companies arrived and, this time, the results disappointed the Tyrians and Trojans. Investors were suddenly reminded that these quarterly corporate reports are actually a small window into the past. They also recalled that we still have a problem of inflation, debt and overheating. In other words, the United States Federal Reserve will surely be forced to continue raising credit costs at its next meetings. In other words, we had two fantasy days and we are already entering the correction period.
At the end of last week, the price of Bitcoin was at the bottom of the consolidation channel ($20.6k-$18.4K). Then, in the middle of the week, in a rally of two consecutive daily candles, the price managed, in an extraordinary way, to be at the top of the channel. In fact, the resistance was broken for a few hours. However, buyers soon got tired. Y we fell back into the prison of this “eternal” channel.
Now, let’s talk about the top crypto news of the week according to Cointelegraph in Spanish. This is not a news summary. This is an op-ed critical and skeptical of such news.
Mastercard launched its new program to help institutions ease the path of crypto adoption
Many in the crypto space come from politics. They are idiosyncratic investors. So their agendas are more political than financial. That means that the world is generally perceived as a battlefield. That is, the good guys (us) and the bad guys (them). They, of course, are our mortal enemies. The established order is oppressive. Therefore, promoting a libertarian revolution of the people against the establishment is a moral imperative.
According to this narrative, crypto is salvation. Mastercard: Friend or Foe? Enemy. We must remember that we are living in times of political extremism. Governments, corporations, private banks, central banks, the media and the dollar are enemies. This is a black and white world. And everything is interpreted in absolute terms. These extreme and theoretical views thrive a lot on social networks, because saying nonsense is very easy and cheap on social networks. There the fans play at being heroes.
I, on the other hand, come from the financial world. I think in terms of profit or loss. My agenda is monetary. And I choose pragmatism instead of ideology. In practice, Technological changes emerge slowly over time as different products, services, and capabilities integrate and merge. Fintech unites the old and the new to create practical, mixed and plural solutions.
Kraken is the next exchange to close the doors to Russian users
A code is an abstraction. So, in theory, a code cannot be regulated or confiscated because it lacks concrete reality. Nevertheless, users of a code do tend to be flesh and blood people residing in certain jurisdictions. True, a global decentralized network can be used to evade regulation in some countries. HoweverFor a company with employees, offices, creditors, customers, and investors, it is more difficult to escape the tentacles of regulation. If you want to be one of the greats, you have to follow the rules of the greats.
Hong Kong reportedly looking to legalize cryptocurrency trading
Hong Kong is a city and special administrative region of China. That implies that the trading of cryptocurrencies can be legal in Hong Kong and, at the same time, it can be illegal in mainland China. One might suspect that these special zones normally serve as a bridge to the gray economy. You don’t have to be a genius to know that legalize the trading of cryptocurrencies will be a big deal for Hong Kong.
Global Recession May Last Until Near Bitcoin Halving of 2024, According to Elon Musk
Elon Musk says one thing today. And he tomorrow he says another. Elon is a showman. He is addicted to self-promotion and publicity stunts. It is extremely difficult to distinguish between the reality of the trick. That is, his predictions cannot be taken seriously. Because we are talking about a subject who promotes his agenda by using words to create a reaction. He is the manipulator in chief. Personally, I must confess here that everything he does and says I analyze from skepticism and mistrust. Next.
Messi partners with Bitget to explore the areas of Web3, cryptocurrencies and football
I understand that Messi is a great Argentine footballer. And I know it’s quite common for an athlete to use his popularity to make money from endorsements. However, I don’t know how knowledgeable Messi is in the areas of Web3 and cryptocurrencies.
An exchange is a business. And here the goal is to make money. Of course the user should carefully weigh the reliability of his exchange. Is trustworthy? Is it solvent? Is it regulated? Has it been audited by an independent auditor? Are you insurer? In this list of considerations,The celebrity associated with the exchange is the least relevant of all.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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