Obviously no one knows for sure what lies ahead. There is no clarity. And investors know it. We may be heading for a recession. Or, on the other hand, the possibility of a “soft landing” has not yet been completely ruled out. What is important for investors is an early slowdown in the economy. Why? Because the pace of the slowdown will dictate how aggressive the US Federal Reserve is in raising interest rates. If the labor market and inflation show no signs of cooling off in the near future, the Fed will be forced to withdraw liquidity more aggressively. Which is not very good for financial assets.
Not too little, not too much, but just right. It is not an easy task, because many things can go wrong right now. In addition, many of the elements at stake go beyond the control of the authorities. So the markets are worried. And this nervousness usually translates into volatility. Investors waver from day to day between optimism and pessimism as new information about the situation arrives.
On the other hand, the strength of the dollar is already wreaking havoc. A dollar that is too strong decreases the income of US companies operating in the international market. Microsoft, for example, this week lowered its projections for the coming quarters due to the situation. But a very strong dollar is also a problem for countries with dollar debt. The debt today is heavier.
Jamie Dimon, CEO of JPMorgan, caused a stir this week due to his statements about the “economic hurricane” that could be coming.. A hurricane, by the way, caused by the Reserve and the war in the Ukraine. The withdrawal of liquidity by a tightening monetary policy is always quite a painful process. And the situation in Ukraine presents a huge blow to the supply of oil, food and other goods. “You better get ready.”
Meanwhile in cryptoland, Bitcoin is still in its state of relative lethargy moving within a fairly narrow band. A tense calm dominates the atmosphere. The most devoted continue to shout the slogan “Buy the Dip” at the top of their lungs. And the most cautious continue to wait for greater falls to buy at better prices. Our luck right now lies in external factors. I am referring to macroeconomic and geopolitical factors. But, above all, investor sentiment regarding risk tolerance.
Now, let’s talk, with a critical eye, about the most popular crypto news of the week.
A major bank in Panama is in favor of Bitcoin and announces the launch of cryptocurrency services
Panama is one of the most important financial centers in the world. Undoubtedly, it has one of the most solid and reliable banking systems in Latin America. Its legal currency is the dollar. His government is full-fledged capitalist. And its democracy, despite its flaws, is not one of the worst in the region. In other words, Panama is not El Salvador. In other words, Panama is a crypto friend with better reputation and infrastructure.
Towerbank is a big bank, but it’s not one of the big ones. Welcome to the family. Nevertheless, It would be quite interesting if the banks most linked to Venezuela and Colombia also join the initiative in one way or another. Considering the volume of P2P activity between these countries, we would be talking about a boom.
The fall in the price of Bitcoin does not affect El Salvador: “Now it’s time to buy more”, reveals deputy Dania González
The young deputy in question, Dania González, belongs to the Nuevas Ideas party, Bukule’s party. In fact, it is the party with the majority in the Salvadoran Congress and the deputy is the president of the Finance Commission. Of course the deputy’s statements are made following the line of her party. Can you afford to contradict Bukele? That optimistic tone is not fortuitous. That is the characteristic tone of politicians who always seem to be campaigning. It is very difficult for a politician to admit a mistake.
El Salvador’s debt is practically equal to its gross domestic product. Its creditors are nervous about the risk of default. A fall of 50%, from its historical maximum, does not affect El Salvador? Beyond what the deputy says, it would be much more interesting to hear what citizens say on the street and what Salvadoran bond buyers say about the matter. What do the polls say?
Shiba Inu founder deletes his social media posts and withdraws from the community
This supposed “detachment” of these founders, it seems, is merely administrative. In other words, they give birth to the child. And then they leave wrapped in a cloud of mystery. Of course that “detachment” does not include the monetary. They certainly take their loot before they leave. Which is quite convenient. Investors buy motivated by great promises. But the founders, those who have made those promises, will not be among us to experience paradise.
Suppose we create a company based on a revolutionary idea. We raise capital with big promises. Finally, after a lot of promotion, we get the financing. At that point, we resigned in the name of decentralization. Not without first exchanging our shares. This is an extremely convenient narrative, because they leave the stage as altruistic heroes while we wash our hands like Pilate of their promises. It is the perfect business. Big profits without any liability.
Ethereum’s Ropsten testnet is ready for Fusion’s “first dress rehearsal”
Ethereum is a community of developers. Developers build things over the network. Developers build things to improve the network. Ethereum’s strength does not lie in its code. His strength lies in his community.
Daily Bitcoin mining revenue plummeted in May to its lowest level in eleven months
Of course low prices mean less income for miners. Lprice drops affect us all. Who are we kidding? Of course, a Bitcoin at $66K is not the same as a Bitcoin at $29K. The “feigned indifference” of many about the price does not convince anyone. The so-called idealists whose faith is proof of everything: “The price does not matter.” Of course price matters. During a down cycle, incomes go down for almost everyone.
During a down cycle, there is an opportunity to buy at better prices. But this opportunity is available to those who have the capital and those who are willing to wait. likewise, These are austere times for everyone. It’s our turn to tighten our belts. I mean, it’s not a party.
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