The first quarter of the year has ended on a very good note. Pessimism has subsided quite a bit, despite all the uncertainty surrounding bank collapses and inflation. The truth is that investors are buying again. Which translates into profit. During these three months, optimism has brought growth. Bitcoin and gold have been the big winners this season. In the case of Bitcoin, it is a spectacular growth of 71% in a very short period of time.
It is impossible to deny that the banking crisis has greatly benefited Bitcoin. For some reason or another, buyers now outnumber sellers. Obviously, the narrative has managed to sink in. The increases can be attributed to three combined causes: The enthusiasm of retailers, the liquidity of the bailouts and the low volume.
The big question: What year will this 2023 be? Will it be 2019? Or will it be 2020? In times of so much volatility and uncertainty, in the short term, anything can happen. Everything depends, to a large extent, on the narrative that manages to convince the largest number of people at any given time. Because there is nothing more powerful for a market than an expectation. If investors think that the price of an asset is going to rise, this expectation is the origin of the purchases. The price then goes up. And what we actually have is a self-fulfilling prophecy. Rightly or wrongly, a narrative can move the market.
During 2019, we had a very good first semester and a pretty bad second semester. Initially, the price went up a lot. But then the price fell just as sharply, wiping out the early gains. What happened? The narrative that drove the increases during the first half fell apart in the middle of the year. Facebook’s Libra project (now Meta) managed to capture the imagination of the community for several months. However, the project died before it was born. And the disappointment deflated the bullish enthusiasm.
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 opinion article. The intention is to reflect on the following headlines in a skeptical and critical way. This is an article for free thinkers.
Coinbase Could Face SEC Action For “Possible Securities Law Violations”
It is very likely that the main person responsible for all these legal entanglements is regulatory ambiguity. If the authorities do not define things well in advance, it is very difficult not to make mistakes.
What is a value? What is not a value? In general, it is not known, because the authorities have not clearly defined the rules of the game. So an investigation conducted with such regulatory ambiguity can find violations of all kinds. After all, without clear laws, everything is interpretedtion. Among so much confusion, everything is, without a doubt, possible. The only sure thing is that the lawyers will get the big bucks in these lawsuits.
The adoption of a CBDC could destabilize banks and help households, according to a US Treasury study.
In relation to money, what has worked best is the current mixed system. That is to saythe alliance between the private and the public. If all power lies in the public, excesses are committed. If all the power lies in the private, excesses are also committed. In a mixed system, excesses can be committed, but the risks are somewhat reduced. Because the two sectors become a counterweight.
Suppose the Federal Reserve creates a stablecoin. In times of “tension”, the user would surely feel much more secure having a direct relationship with the central bank. In this sense, it would be better for homes. And of course this would have a destabilizing effect for banks. However, that aforementioned counterweight would be lost. We would have a much more centralized system.
Binance Employees Reportedly Helped Clients in China Bypass KYC Checks
After the FTX collapse, the pressure from regulators is much higher. And Binance is the big apple. Certainly, many efforts have been made in the path of transparency and legality. I mean, Things are not like before. But it is not easy. The libertarian spirit in this space is very influential. It gives the impression that the law is complied with, but reluctantly. It is fulfilled to fulfill. However, it could not be said that there is much vocation to abide by the regulations imposed by the Government. Don’t know. Suddenly, I’m wrong.
Do Kwon is charged with fraud by the US Attorney’s office hours after his arrest
This now remains in the hands of the courts. I think it’s great that they found it. I think it’s great that they stopped him. And I think it’s great that you have so many charges against you. What is needed, in this case, is justice. What was lost was not three cucumbers. Of course someone has to pay for those broken dishes.
Binance and CZ sued by the Commodity Futures Trading Commission for regulatory violations in the United States
The authorities are tightening the nut. Obviously, they are investigating. And, apparently, they are finding things. Bitcoin is code on a decentralized network of computers. Naturally, a code cannot have problems with the law. And, due to its digital and decentralized nature, its power to evade is greater. However, the authorities can act against people and businesses.
Do you want an office in New York? Do you want to raise capital in the United States? There is no other option than to follow the laws of the country. Uncle Sam will go for you. Bitcoin is affected by the laws of the country. Because the demand is affected. And demand is the key to price. Bitcoin is an industry. And that industry is made up of people of flesh and blood. Those people of flesh and blood must comply with the laws of their Government.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here 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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