After a panic, it is not unusual to return to optimism. In these cases, after reflection, investors understand that short-term exaggeration by markets is not uncommon. Suddenly, things are not so serious. It can be “wrong”. But there are many levels to “bad.” In fact, the worst may already be over. We may have found our flat. Consequently, with those assumptions, rebounds arise. What could be termed as bear market rallies. Nevertheless, Everything seems to indicate that, once again, the week is ending with a lot of pessimism after an even more pessimistic start to the week. Did we get to the floor?
Certainly, inflation does not affect everyone equally. For example, the price of fuel does not affect a cyclist in the same way as a road worker. If you are not a lover of olive oil or vegetable oil, suddenly, you are not the first to shout to heaven with the increase in their prices. If they are not on the market for a vehicle or property, your suffering may be less than those who are interested. People who eat a lot of local vegetables and fruits are not having the same experience as the more carnivorous. Now, hehe latest reports from Wal-Mart and Target reveal that consumers are starting to spend less thanks to the heavy weight of inflation. In other words, the middle class has been hit hard by inflation. Y this is not very encouraging for those of us who still want to lower inflation without a recession.
Of course, the way inflation, the CPI, is measured in the United States is not entirely reliable. Very important items (energy, food and housing) are minimized and others not so essential for the average consumer are highlighted. Housing, energy and food. In these three items, the salary of the majority is practically gone. Now, with the possible entry of Finland and Sweden into NATO, things could get more ant-colored for us when it comes to the supply of oil, gas, corn, barley, sunflower seeds and wheat. With the Covid-19 situation in China, bottlenecks continue to wreak havoc. I ended up emphasizing that the aforementioned is outside the control of the Federal Reserve of the United States and its monetary policy. Indeed, we could be heading for a stagflation crisis.
Meanwhile in cryptoland, despite huge bearish pressure, we failed to hit new lows. We still have a support. Which is quite positive. Now, we are still digesting what happened with Luna-Terra. The elephant in the room is, of course, Tether. There is a “scare” throughout the ecosystem around Tether and its supposed “secret sauce”. Many fear that this “secret sauce” has more air than substance.
Now, let’s talk, with a critical eye, very critical, of the most popular crypto news of the week.
El Salvador President Nayib Bukele met with a group of central bankers to discuss Bitcoin
It is much easier for the president of a third world country to organize a meeting than to attract international capital. In these cases, you have to look beyond the headlines and photos. Because nowadays public relations offices do wonders. Let’s get right to the cheese on this toast. Do Salvadoran bonds inspire confidence? Governments pass, but debts remain. It is not what Salvadorans say about their president. We know that Bukele has the political capital within his country. We can’t trust Bitcoin fans too much either, because most Bitcoin fans support everyone who says something positive about Bitcoin without much question. If North Korea’s Kim Jong Un publicly adopts Bitcoin tomorrow, I wouldn’t be surprised to see several of these Bitcoin fans on the next flight to take photos with the dictator.
Do you want to know the true opinion of the bankers about El Salvador? Let’s look at country risk. What do international capitals think about Salvadoran bonds? El Salvador is a sovereign country. But at the same time, sell bonds on international markets. How much confidence does El Salvador inspire among investors? If you sell bread, perhaps it is not a very good idea to antagonize the buyers of the bread.
The Bitcoin market in Latam continues to fall in this month of May
Cryptocurrencies are very popular in Latin America. But this bearish streak affects us all equally. The region depends a lot on what happens in the United States, Europe and Asia.
The US Senate confirms Jerome Powell for another four years as chairman of the Federal Reserve
Jerome Powell has bipartisan support. As simple as that. It is true that there are sectors that criticize Powell’s work. But those sectors, it seems, do not have many seats in the US Senate. Is the Fed to blame for the current situation? The most conservative say yes. Too much money printed out of thin air. But that opinion, whether we like it or not, belongs to a minority (libertarians, conservatives, anarcho-capitalists, and others). The majority supports the work of the Fed, despite the fact that it is recognized that the Fed has been more reactive than proactive in the face of inflation. In other words, it is acting too late. Leaving that aside, it seems that the consensus thinks that inflation is a multifactorial phenomenon with more than one culprit. Liquidity is definitely one. But it is not the only variable in this puzzle. There is more. Putin? China? Covid? Problems of globalization? Logistics crisis? The truth is that we will have Powell for four more years.
Russia Will Inevitably Legalize Crypto Payments, Trade Minister Says
Before issuing a judgment in relation to this legalization, you must first read the law. When? Than? How? Why? So that? There are laws that are designed to protect the user. And there are others that are designed to increase the power of the state.
Bitcoin Trades at $29,000 as Tesla Exit from ESG Wreaks Havoc on Stocks
What are the criteria to remain on the ESG list? Are those criteria reasonable? Why doesn’t Tesla meet these criteria? Is the ESG rating “ridiculous” or a “scam”? Harassment is about “fake warriors of social justice”? Well, It would be very interesting to do a serious study of working conditions at Tesla. Is it true that the working conditions of the companies on the list are much better than those of Tesla? It is very easy to disqualify the judge with adjectives after obtaining a result contrary to our wishes. However, it would be great to fix the nitty-gritty by doing an independent audit on it. And demonstrate with evidence that the agency has, in fact, done an injustice by removing Tesla from the list. Anyone can write a tweet with “adjectives”. Not everyone undergoes such an audit and publishes the findings.
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