Among the most notable news of the week is the fact that more bankers around the world have called for the regulation of bitcoin (BTC) to be accelerated. This, during the World Economic Forum in Davos. At the annual conference, which was held from May 25 to 26, a document called “Crypto Crash” was presented in which the current situation of the cryptocurrency market was analyzed since the collapse of Terra.
The bear market continues, although the price of bitcoin seems to have stabilized in a range between $29,000 and $30,000. The fall of the cryptocurrency in the last seven days is estimated at 2.6%. At the time of this writing, bitcoin is trading at USD 29,234, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.
These are the most important news:
- Bitcoin took center stage during the annual meeting of the World Economic Forum in Davos. Among the conclusions of the meeting of political, economic and business leaders, presented in a document entitled “Crypto Crash”, is the idea that cryptocurrencies are an undeniable reality, but requires countries to start working on regulation immediately. On the other hand, the Bitcoin network hash rate experienced one of the biggest drops in recent times. Bitcoin hashrate decreased by 12 EH/s in the last 15-day period.
- This week the European Central Bank (ECB) and the Federal Reserve of the United States (FED) published two studies that show a substantial increase in bitcoin adoption in their respective territories. The ECB survey revealed that up to 10% of households own bitcoin; while the FED report indicated that Americans are increasingly looking to cryptocurrency as a form of investment. For both regulators this increase is worryingbecause it increases the risk of interconnection between crypto assets and the traditional financial sector.
- “We should not compare bitcoin, which is the oldest and the largest in terms of market capitalization, with the newer cryptocurrencies.” This is the phrase used by the senior analyst Marion Laboure, of the German bank Deutsche Bank, which highlights the fact that banks are understanding the true meaning of Bitcoin and its difference with other cryptocurrencies. For its part, the payment and financial transaction platform, SWIFT, is already testing central bank digital currencies or CBDCs. The global provider is testing cross-border payments with CBDCs, considering the increase in countries planning to launch this type of coin.
- MicroStrategy CEO Michael Saylor; Caitlin Long, CEO of bitcoin Avanti Financial Group; and Senators Ted Cruz and Cinthya Lummis, participated in a Heritage Foundation event to highlight the positive potential of bitcoin in the context of inflation and macroeconomic problems facing the United States. All this, while the economic analyst and founder of Euro Pacific Capital, Peter Schiff, said that there is already an ongoing recession in the US and it will be worse than the one that happened in 2008. Schiff stated that already in the first quarter of this year the economy shows a negative performance and the gross domestic product fell in two consecutive quarters.
- JP Morgan investment company think bitcoin is currently undervalued. According to their estimates, BTC is almost 30% below its “fair price”, which should be around USD 38,000 per unit. According to the North American company, “the cryptocurrency market correction looks more like a capitulation relative to January/February” than a prolonged bear market. Traders, on the other hand, seeing the bitcoin price remain below $30,000, are looking for more investment options in altcoins.
- After declaring bitcoin legal tender, the president of the Central African Republic, Faustin-Archange Touadéra, announced that he will soon launch the Sango project, an initiative with which it plans to attract investors from the bitcoin sector and cryptocurrencies and that includes the creation of a Digital Bank of the Nation. Shortly after the announcement, a group of French-speaking bitcoiners arrived in the country’s capital. They arrived with the idea of addressing different aspects that facilitate complete learning about the pioneer of cryptocurrencies. Meanwhile, in Russia, the government debates the possibility of using bitcoin to make international paymentsgiven the liquidity “limitations” faced by its traditional payment system, which is sanctioned by the invasion of Ukraine.
If you want to know the meaning of several words of the terminology of the crypto world, you can consult them in the extensive Glossary of CriptoNoticias. Here’s a little preview with the word OCD.
OCD (Obsessive Cryptocurrency Disorder): translates as “Obsessive Cryptocurrency Disorder”, humorously referring to the alleged psychiatric disorder suffered by those who cannot stop checking the prices of crypto assets.