2022 has been a year of great surprises. Russia invaded Ukraine. Of course, at first, the battle seemed very uneven. And some came to think that the operation would be brief and (relatively) simple. That is, it was thought that the contest would be an easy victory for Russia.
However, the Ukrainians (with the help of the West) have managed to defend themselves with particular competence. Russia has failed on many fronts. And Ukraine has held up amazingly. The West has imposed sanctions. Russian banks have been removed from the SWIFT system. Russian assets abroad have been frozen. Blocks have been placed. And many companies like Apple, Ford and Shell have left the country.
These measures have had an effect on the price of various items (oil, gas, wheat, edible oil, among others). The situation has added greater inflationary pressures to an economic system already under a lot of pressure. The world’s major central banks have been forced to raise borrowing costs quite aggressively to combat inflation that has obviously gotten out of control thanks to excessive monetary stimuli, disproportionate fiscal policy, failures in production chains, and global distribution, very high private spending and a fairly tight labor market.
This turn in monetary policy has caused a significant readjustment in the prices of risky assets such as big tech and crypto. Due to the volatility and uncertainty, investors have sought protection in stable instruments such as the dollar and T-bonds. Or, put another way, investors have become more conservative. Risk appetite has declined markedly. Which implies that the fear of losing is much greater than the greed of winning.
Bitcoin and cryptocurrencies have been hit particularly hard by the new macroeconomic conditions. Especially, after the collapse of FTX, with its CEO accused of fraud, investors are seeing this ecosystem with different eyes. It must be recognized that the blow to reputation has been enormous. Prices have fallen. Y buyers are waiting for the waters to settle. Other bankruptcies could be just around the corner.
And 2023? One might think that things will only change for the better in 2023.. After all, progress has been made in the fight against inflation. And many investors are anticipating a turnaround from the US Federal Reserve in the second half of the year. These assumptions are made based on a mild recession scenario. Will these expectations be met?
Investors’ hope is that the Federal Reserve will change monetary policy as soon as possible to avoid a major recession. However, this Fed has insisted on many occasions that, with or without a recession, it will not rest until it achieves the 2% year-on-year inflation target. In other words, 2023 could also be full of surprises.
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.
Sam Bankman-Fried is sent home after his parents put up his house to cover his astronomical bail
SBF is already in the United States awaiting trial. “I only have $100,000 in my account,” SBF confesses in a tweet. Do we believe him? True or false? We do not know. However, the most sensible thing to do is to question everything. Because, from a manipulator of that size, we cannot expect anything other than pure theater.
In Palo Alto, at his parents’ house, with surveillance and without a passport. $250 million bail. Here the risk of escape is very high. However, Now we have to wait for the development of the facts.
US Senate Banking Chairman Raises Cryptocurrency Ban
The evils come all together. And, in all crises, a politician always emerges presenting himself as the great savior. The solution is not a total ban. This would be thinking with your feet. What needs to be done is pave the way for proper regulation. Manipulation, cheating and lack of transparency are our daily bread in this space. Certain. But there are measures that can be taken beyond a total ban.
Visa plans to allow automatic bill payment from its cryptocurrency wallet
Those victories in the field of adoption are positive. However, they do not have the same force as before in the current context. Crypto is one form of payment among many others. And plurality is the new normal in Fintech. However, at this time, what most occupies the minds of investors is the price of Bitcoin. When will the buyers return?
Caroline Ellison, ex-CEO of Alameda, escapes a possible sentence of 110 years in prison thanks to an agreement with the prosecution
The big winners in all this will be the lawyers. Obviously. Of course there will be negotiations. Of course deals will be made. The head the prosecution wants is that of Sam Bankman-Fried. Because he is the main person responsible for all this disaster. He is the biggest fish. And the whole circle of him is “sacrificable”. But he not. So this deal is not surprising at all. This is a very high profile case. Here The prosecution will give everything for everything.
In Uruguay, the Chamber of Deputies has approved a bill that deals with the regulation of cryptocurrencies
Brazil and Argentina have taken some steps in this direction. So Uruguay must now catch up. Because interdependent economies must maintain coherent legal frameworks. Otherwise, there is chaos and friction. In other words, the regulation of cryptocurrencies should be a regional project.
Regulation, like it or not, is on the way. But the mistake is to go to extremes. Crypto-libertarians advocate a free-market fundamentalism. In other words, the idea of non-regulation. But extremism attracts extremism. Therefore, we fall into false dilemmas. No regulation, for one thing. Prohibition, on the other. What we must do is work together for proper regulation.
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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