Wall Street continues to ignore the Federal Reserve. The fight against inflation continues. Nevertheless, the market does not finish accepting the complexity of the situation. The United States Federal Reserve is expected to maintain its monetary tightening policy during the first half of 2023, seeking to reduce inflation to the 2% annual target. This is done through interest rate increases. However, it is not an easy task. And many things can go wrong. Well, investors tend to be overly optimistic, forming false expectations about it.
In their statements, the members of the Reserve have tried in many ways to communicate in the best possible way. Their efforts have not always yielded the best results. They are not always believed. Thenany progress in the fight against inflation is almost automatically interpreted as the end of the war. Here’s the exaggeration. The good news causes quite a disproportionate bullish enthusiasm. What becomes a headache for those responsible for monetary policy. PBecause irrational expectations generate unnecessary inflationary pressures.
How are the Big Techs? Microsoft already showed their numbers. And unfortunately, last quarter’s revenue was pretty disappointing. This is very relevant, because investors are hoping that 2023 will be a year of recovery for Big Tech. The demand for cloud services has decreased a lot. Which is a reflection of a decrease in spending by customers. Thus, the market is starting to get nervous.
The United States Department of Justice has denounced Google for its alleged anti-competitive practices in the digital advertising business. The lawsuit alleges that Google tries to limit the number of rivals through acquisitions. The outcome of this story remains to be seen.
In short, we cannot deny the existing correlation between Big Tech and crypto. It seems our destinies are intertwined.
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.
Spain: both gains and losses from cryptocurrency sales during 2022 must be reported
We can open a debate around the scope of a technology designed to separate money from the State. And it is true. Of course there are ways to evade the law. However, evasion is evasion. The law in the land is the law of the land. The citizen must comply with the laws of his jurisdiction. We are talking about a legal matter. I mean, it’s not just a matter of technology.
The liberatory current of the crypto community promotes deregulation and free market fundamentalism, inspired by a rather anti-statist spirit. Nevertheless, that complying with the law is not optional.
“He iincome tax produced by cryptocurrencies, or losses during 2022 must be reported.” As simple as that. Applies to Spanish citizens of all political currents.
FTX relaunch could fail due to lack of user trust, according to observers
Obviously, not a good idea. A name carries a lot of weight. In other words, you could say that the name “FTX” brings back bad memories. Personally, I don’t even put money there. Call it superstition. Call yourself like that. But I wouldn’t name a child after the villain in the movie.
I wouldn’t trust the team either. Well, if you create a whole new company with new people and a new name, all of a sudden, a relaunch is possible. Of course, as a general rule, if Sam Bankman-Fried agrees with the idea, I don’t like it and he doesn’t have my support. In my opinion, not even the ashes should remain from a fraud of this size.
Token dumping after listing on Binance raises suspicions of insider trading
It is no secret to anyone that in this market everything happens. This is not a convent for barefoot nuns. Nothing surprises anymore. Is privileged information used in this space? Of course. All time. ANDhe problem is that the authorities do not have the capacity to investigate everyone.
In this Wild West, everything happens. What is happening in this particular case? I don’t know. It may be unfounded suspicions. It can be about anything. But We can’t say much about it, because we don’t have the complete information.
Chilean Fintech Law recognizes cryptocurrencies as financial assets
I must confess that I like that definition: “financial assets”. I don’t really like it when the category of “coins” or “money” is used. confuses. Because “assets” is a pretty neutral term. However, with the term “currency”, we can fall into the political game of libertarians in their constant insurrection against statism. The dollar that. The dollar that.
Now, “financial asset” is a term without much baggage. Investors invest in financial assets to grow financially. Simple.
Blockchain project launched in Davos aims to be the “SWIFT” system of stablecoins and CBDCs
We well know that SWIFT is a system used as a political weapon by the United States and its allies. Then NIt is not a surprise that the most “controversial” actors look for alternatives. That is not new. China, Russia, Iran and others maintain their constant aspiration to break the hegemony of the dollar/SWIFT system. In this case, the problem is not technological. The problem is mainly political and economic. Who will be part of this network? What rules will be imposed? Will they respect the economic, political and social rights of users?
Technology is not a panacea. We cannot forget the human. Codes and algorithms can be made and undone. Technically, a new SWIFT can be formed. However, it is not easy in practice. What is your network? What happens if your main business partners refuse to join your network?
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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