Bitcoin loses 40,000 but market is bullish; The Bahamas is open for cryptocurrency

Fears of higher interest rates before Federal Reserve they paid the Bitcoin price Less than $40,000, at a level that hasn’t been touched for over a year, despite positive news on the adoption front by countries interested in the digital currency.

The Fed’s Impact on Bitcoin

Markets Cryptocurrency They declined earlier in the week, with Bitcoin failing to maintain the $40,000 level. Fears of a 50 basis point rate hike were boosted by Federal Reserve Chairman Jerome Powell’s comments last Thursday.

Powell said:In my opinion, it is appropriate to move a little faster, which represents a major shift in the direction of the Federal Reserve’s strategy; Rather than steadily raising interest rates to 25 basis points this year, Powell said the FOMC is more willing to raise rates faster and achieve the 2-2.5% target at a faster pace.

This means that a 50bps rate hike is very likely at the upcoming FOMC meeting on May 3-4. The Federal Reserve has clearly taken this aggressive stance because US consumers are still spending heavily, which is surprising after the Russo-Ukrainian war.

According to the analyst Marcos SoteroI think that while we have a more aggressive Fed that could inflict more pain on global markets in the short term, I remain cautiously optimistic about Bitcoin. This is because the market was already expecting a 50 basis point rate hike prior to Jerome Powell’s announcement last week, so this news was already highly valued. This could lead to a “buying the facts” event on the day of the FOMC meeting on May 3-4“.

Sotiriou is not the only optimist

Despite the aggressive Fed, the Bitcoin chain metrics are in the opposite direction. data glass It showed that the percentage of bitcoin supply that has not moved in a year has reached an all-time high.

This data tells us that while these macro headwinds are underway, Bitcoin is being distributed by those who see it as a risky asset to its long-term owners who have a strong belief in Bitcoin’s long-term potential.

Nigel Green is also optimistic about the price

Bitcoin will recover from the current crash and reach a new all-time high of $75,000 by the end of 2022, as CEO and founder He shouldAnd Nigel GreenThat is an explanation:Bitcoin briefly fell below $40,000, following global stock losses.

The correlation with stock markets is especially evident now with the tech-rich Nasdaq 100, which is traveling more than ever in tandem with Bitcoin.“.

still: “Investors appear to be reducing their exposure to risky assets, including stocks and cryptocurrencies, due to rising concerns about inflation and slowing economic growth.

There is a growing feeling that central banks, including the US Federal Reserve, the Bank of England and the European Central Bank, will not be able to achieve a ‘soft landing’, i.e. curb inflation without allowing a recession.“.

According to Green, Bitcoin is a credible inflation hedge for three main reasons: first, its scarcity: the limited supply of 21 million means that higher demand will cause prices to rise; Second, its accessibility: as a resource that has value and is accepted by the market; And third, its shelf life: Bitcoin will continue to attract more demand over time.

Other core values ​​of the crypto queen of being a decentralized, tamper-resistant and non-confiscation monetary system have been revealed “in recent weeks” due to geopolitical issues.

For these reasons, Green remains very bullish on Bitcoin

If nothing else, the case for bitcoin and cryptocurrency is getting stronger. Therefore, we expect Bitcoin to recover from the current recession and reach a new all-time high of 75,000 by the end of the year.The expert said.

Therefore, the”whales“Individuals or entities that own enough cryptocurrency to have the ability to shift valuations will ignore concerns about dips, use them as buying opportunities, and focus on longer-term trends.”

Nigel Green concluded by saying that “panic sellers are feeding whales who see the current bitcoin price drop as discounts.”

The Bahamas Interested in Using Bitcoin

The global adoption of cryptocurrencies continues to grow as Bahamas Citizens are now allowed Pay taxes on digital assets.

Bahamian Prime Minister Philip Davis said:We have a vision to turn the Bahamas into a major digital resource hub in the Caribbean“.

The announcement of the strategy to increase adoption of digital assets came just a week before the Crypto Bahamas conference, which was attended by guests such as the former British Prime Minister. Tony BlairFormer President of the United States Bill Clinton The most famous midfielder in the NFL Tom Brady.

In addition, the government will allow residents to use the Bahamian CBDC (Central Bank Digital Currency), called the Bahamian Sand Dollar, to access digital assets.

A report by PricewaterhouseCoopers last year showed that the Bahamas “sand dollars” are among the 60 currencies around the world that top the curve. PricewaterhouseCoopers ranked the top 10 online retail banking initiatives worldwide based on project maturity, with Sand Dollar at number one.

Central bank digital currencies aim to increase payment efficiency, reduce the costs of financial services, and strengthen control over cash fraud. According to PricewaterhouseCoopers, the vast majority of central banks are considering launching a central bank digital currency.

PwC analysts said:We expect digital central bank currencies to benefit greatly from cross-border transactions and the economies of all relevant jurisdictions“.

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