We have had many consecutive weeks in the red. Well, we had a break. Of course it’s not a big celebration. Remember that even the most bearish markets have their rallies from time to time. It could be said that it is a truce before a long weekend. While it is true that the quarterly reports from Wal-Mart and Target created pessimism last week, the reports from Macy’s, Dollar Tree and Dollar General renewed some lost hope this week. In general, consumer confidence is still holding up. On another positive note, the latest reports from the Department of Commerce (USA) reveal that inflation has dropped a bit. Cross our fingers.
The aspiration of investors is, of course, to control inflation without causing a recession.. That is the importance of corporate reports. With prices adjusting in the stock markets due to the new monetary paradigm, hope lies in the performance of the economy. All eyes are now on the profits. If inflation becomes too high, this jeopardizes profits. If liquidity squeezes slow demand too much, this also jeopardizes earnings.
The recently released Fed minutes show us the Fed’s commitment to hike rates in half percentage point increments during upcoming meetings. Here the priority is to lower inflation. Which is very good for price stability. But it is problematic for financial assets. Which means the worst is not yet over. A long bumpy road awaits us.
Meanwhile in cryptoland, Bitcoin is in something of a lethargy. Downside pressure is high, but buyers’ faith is not dying. Very few are those who risk making price predictions now. And hardly anyone wants to decree the bottom. Whether we like it or not investors are looking to invest in more stable options right now.
Now, let’s take a critical look at the most popular crypto news of the week.
El Salvador: Max Keizer and Stacy Herbert Fund Receives Investment from Bitfinex
Beautiful photos of Max with Bukele. What is a “hyperbitcoinization” fund? One could assume that a fund specialized in hyperbitcoinization invests in companies and startups related to this process. What are those companies and those startups? Where are they? What is your profitability? What is its potential?
Max Keiser invested in Bitfinex in the year 2013. Now his fund receives money from Bitfinex. Curious. I think this fund is starting with the promotion and collection to then look for opportunities. Will you be able to find quality opportunities in El Salvador?
Tether Launches a Stablecoin Pegged to the Mexican Peso on Ethereum, Tron, and Polygon Networks
The launch of a new project is always very exciting. And besides, stablecoins are extremely useful. Obviously we need stablecoins pegged to the dollar and the euro. But I suppose it is also very useful to have stablecoins pegged to other currencies. The Mexican peso is a very important currency. Surely, a stablecoin pegged to the Mexican peso would be invaluable in reducing friction. The issue of remittances comes to mind.
Now let’s talk about the elephant in the room. Tether are in the hot pot. The situation is, in fact, quite worrying. Does the company really have the backing to guarantee its anchorage? Regulators have their eye on stablecoins. And Tether is the first on the list. Tether’s lack of transparency does not inspire much confidence. In my opinion, the company should focus all its efforts on changing its ways. You must open your books. And it must prove in a thousand ways that there is no reason for concern.
The United States Department of Commerce is requesting proposals to help develop a cryptocurrency regulatory framework
“What, if any, is the future role of digital asset mining in the US digital asset industry? How can the US government and business drive competitive and sustainable development (for the environment)? environment and energy consumption) of digital assets?”
Freedom taken to an extreme is licentiousness. Y debauchery is chaos, fraud and manipulation. Very few trust a market outside the law. Investors prefer clear rules. We need regulations in order to prosper. This is not something that is imposed exclusively from above. This is something that the same users are requesting. Investors want to participate in a legitimate market. I think it is very important to send our proposals to get the best possible regulation. The time has come to mature.
Biden’s Pick for Fed Vice President for Oversight Calls on Congress to Act on Stablecoins
Michael Barr, a law professor and former member of the advisory board of Ripple Labs, chosen by the president of the United States, Joe Biden, to occupy the vice presidency of supervision of the Federal Reserve, has joined the call of many around the regulation of stablecoins. Users at this time are totally unprotected. What about “personal responsibility”? Why Dad State Should Protect Citizens? One thing is the promotion of statism and quite another is to create the perfect conditions for the “bandits” to do their misdeeds with total impunity. The free market is not perfect. The Wild West is not a paradise.
WEF 2022: PayPal seeks to cover all possible services related to cryptocurrencies and blockchain
The World Economic Forum in Davos returned after two long years of pandemic. What have been the most recurrent themes in the corridors? Inflation, oil, the war in Ukraine, the situation in China, monetary policy, the possibility of a recession and falls in the stock markets. The Fintech sector has made an appearance in the place. It is a sector that has been hit quite a bit by market declines, but, at the same time, it is a very creative sector with many aspirations and a lot of potential. This bad streak is temporary. Sooner or later, things will get better. Fortune favors patients.
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