LUNA Crypto News: Anonymous Takes Aim at Do Kwon After Terra Collapse

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Stacked Terra (LUNA) crypto tokens. Terra Classic Price Predictions.

Source: David Sandron / Shutterstock.com

The Terra (LUNA-USD) network is doing quite well today, up more than 20%. The gains are seemingly out of nowhere and they are causing a stir. But, there’s a piece of LUNA crypto news that’s drumming up even more chatter: Hacktivist group Anonymous is taking on Terra founder Do Kwon.

Do Kwon has found himself at odds with many of his once-devout followers. Since Terra’s collapse in mid-May, many Terra users have fled the project completely. Some of those who have stayed have been at odds with Kwon and Terraform Labs. For example, Kwon pushed forward with a hard fork to solve the issue despite disagreement in the Terra user base.

Lots of these users have come around, embracing the Terra Ecosystem Revival Plan. This plan was similar, creating a new Terra through launching an entirely new chain.

The weeks since launching this chain have been quiet. Terra Classic (LUNC-USD) remains far from its old prices, and its complementary stablecoin, TerraClassicUSD (USTC-USD) is nowhere near its $1 peg. The new network, meanwhile, saw a fast nosedive which brought prices more than 80%.

LUNA Crypto News: Hackers Promise to Uncover Truth

Both Terra and Terra Classic are starting to reverse their bad luck today. Indeed, both the new LUNA crypto and the LUNC coin are big gainers on Monday. LUNA prices are up more than 20% while LUNC prices are up nearly 60%. The price momentum follows a big piece of LUNA crypto news, pitting Do Kwon against one of the internet’s most infamous hacktivist groups.

The group, Anonymous, is well known for taking on Big Tech and the government. In its nearly 20-year history, the group has perpetrated high-profile data leaks targeting the likes of the Koch brothers, Mastercard (NYSE:MA) and even the Russian government.

Today, the group is exciting crypto investors as it identifies Do Kwon himself as its newest target. A YouTube video addressed to Kwon details the reasons behind the new campaign. The video points out unavoidable macroeconomic factors that have driven the recent crypto bear market. Yet, it also puts much of Terra investors’ losses on the shoulders of Kwon himself.

There are a number of rumors about Do Kwon springing up in the face of Terra’s collapse. As mentioned, the Terra revival plan was not very popular among community member at first. As rumors now suggest, Kwon was using his own secret stash of funds to manipulate the governance proposal and pass the plan.

These rumors come alongside allegations that Kwon was secretly behind another failed stablecoin project. Anonymous is now looking to bridge together all of these details. The group says it is working to uncover all details of Kwon’s crypto history which might not yet be public.

The post LUNA Crypto News: Anonymous Takes Aim at Do Kwon After Terra Collapse appeared first on InvestorPlace.

Do Kwon has found himself at odds with many of his once-devout followers. Since Terra’s collapse in mid-May, many Terra users have fled the project completely. Some of those who have stayed have been at odds with Kwon and Terraform Labs. For example, Kwon pushed forward with a hard fork to solve the issue despite disagreement in the Terra user base.

Source: https://styles.markets.businessinsider.com/news/stocks/luna-crypto-news-anonymous-takes-aim-at-do-kwon-after-terra-collapse-1031552567?op=1

Top 5 cryptocurrencies to watch this week: BTC, UNI, XLM, THETA, HNT

Quick Summary

Although Bitcoin is struggling to form a bottom, altcoins are on a roll and the current price action could benefit UNI, XLM, THETA and HNT.

If buyers drive the price above $6.08, the bullish momentum could pick up and the UNI/USDT pair could rally to $8.

Contrary to this assumption, if the price turns down from $1.55, it will suggest that bears continue to defend the resistance aggressively.

Article Details

Author / Journalist: Cointelegraph By Rakesh Upadhyay

Category: Crypto

Topics: Stellar Theta Network Uniswap Markets Bitcoin Price analysis Helium

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-26, 20:42:06

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Reading Time: 9 minutes read

Article Length: 1507 words

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Source: https://beamstart.com/news/top-5-cryptocurrencies-to-watch-16562758408092

France’s central bank says users have more trust in banks than cryptocurrencies – WEF22

France central bank governor François Villeroy de Galhau has suggested that the recent happenings in the cryptocurrency market characterised by massive sell-offs have pushed people to trust more in banks than digital currencies.

Speaking during a session at the World Economic Forum on June 26, Villeroy pointed out that the shift might be due to the nature of private cryptocurrencies that he said don’t foster trust. Consequently, he noted that citizens might seek to align with products that promote trust, like central bank digital currencies (CBDC).

According to the governor, cryptocurrencies are unreliable because they lack an entity that is responsible for their value. In this line, Villeroy noted that the trust issues would likely accelerate the development of CBDCs.

“In recent weeks, citizens have lost trust in cryptos, but more than in central banks without any doubt <…>Nobody is responsible for the value of cryptos and it must be accepted universally as a means of exchange,” he said.

Trust in banks despite high inflation

Interestingly, the official maintained that the trust still exists in banks despite most central banks being blamed for the skyrocketing inflation.

During the session, Villeroy stressed that there is a need for central banks and the private sector to work together in designing CBDCs. He suggested that banks guarantee trust while the private sector comes with the much-needed technology.

Previously, the governor hailed Bitcoin for introducing innovative technology, but the institution has maintained a sceptical approach towards cryptocurrencies.

Market correction

Notably, the crypto market has been trading in the red zone in 2022, with Bitcoin leading in the losses. The flagship cryptocurrency is currently struggling to sustain its price above $20,000.

However, the market has made slight gains aiming to reclaim the $1 trillion market capitalisation, while Bitcoin’s value has surged at least 1% in the last 24 hours to trade at $21,400 by press time.

Besides the collapsing prices, the market has also been hit with controversies like the Terra (LUNA) ecosystem crash that resulted in significant losses for investors.

The incident has raised questions over the triggers for the collapse. For instance, founder Do Kwon is facing allegations of fraud in the collapse.

Watch the full interview below:

Justinas Baltrusaitis

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

“In recent weeks, citizens have lost trust in cryptos, but more than in central banks without any doubt <…>Nobody is responsible for the value of cryptos and it must be accepted universally as a means of exchange,” he said.

Source: https://finbold.com/frances-central-bank-says-users-have-more-trust-in-banks-than-cryptocurrencies-wef22/

As #cryptocurrencies Reel Under the Global Downturn, Chinese State-run Newspaper Economic … – Latest Tweet by IANS India | 📰 LatestLY

The latest Tweet by IANS India states, ‘As #cryptocurrencies reel under the global downturn, Chinese state-run newspaper Economic Daily has warned investors that the price of leading cryptocurrency #Bitcoin is “heading to zero”.’

Socially Team Latestly| Jun 25, 2022 04:42 PM IST

As #cryptocurrencies reel under the global downturn, Chinese state-run newspaper Economic Daily has warned investors that the price of leading cryptocurrency #Bitcoin is “heading to zero”. pic.twitter.com/SW0crrq6UC— IANS (@ians_india) June 25, 2022

(SocialLY brings you all the latest breaking news, viral trends and information from social media world, including Twitter, Instagram and Youtube. The above post is embeded directly from the user’s social media account and LatestLY Staff may not have modified or edited the content body. The views and facts appearing in the social media post do not reflect the opinions of LatestLY, also LatestLY does not assume any responsibility or liability for the same.)

Source: https://www.latestly.com/socially/india/news/as-cryptocurrencies-reel-under-the-global-downturn-chinese-state-run-newspaper-economic-latest-tweet-by-ians-india-3871059.html

Cryptocurrencies in focus: This is how Bitcoin, Ethereum & Co. move in the morning|

The Bitcoin price rose in the morning. As of 09:41, Bitcoin gained 1.00 percent to $21,477.71. Yesterday the rate was $21,265.25.

Meanwhile, Bitcoin Cash is showing a plus. Compared to the previous day ($ 115.05), it is up 0.43 percent to $ 115.55.

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In addition, the Ethereum course is falling. As of 9:41 a.m., Ethereum is down -0.06 percent to $1,231.90, down from $1,232.70 the day before.

Meanwhile, Litecoin is trading at $56.98. Compared to the previous day ($56.13), this is a gain of 1.52 percent.

Ripple is also moving sideways. At 9:41 a.m., the rate was set at $0.3713. The day before, Ripple was trading at $0.3683.

Cardano is also moving sideways. At 9:40 a.m., the rate was set at $0.5048. The day before, the Cardano rate was $0.5013.

Meanwhile, Monero is up 0.15 percent to $126.98. The day before, Monero was worth $126.78.

In addition, IOTA is moving sideways. At 9:40 a.m., the rate was set at $0.3115. The day before, the IOTA rate was 0.3079 US dollars.

In the meantime, there are hardly any rashes to be seen at Verge. After being $0.0033 the day before, the Verge rate is quoted at $0.0033 at 09:41.

In the meantime, there are hardly any rashes at Stellar. After reading $0.1283 the previous day, Stellar price is quoted at $0.1292 at 09:41.

In the meantime, hardly any rashes can be seen with NEM. After being $0.0432 the day before, the NEM rate is quoted at $0.0441 at 09:40.

Meanwhile, the Dash rate is rising. Dash is up 1.26 percent from $51.96 the previous day to $52.62.

Meanwhile, the NEO course is rising. NEO is up from $9.713 the previous day to $9.794 (0.84 percent).

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Source: https://taketonews.com/cryptocurrencies-in-focus-this-is-how-bitcoin-ethereum-co-move-in-the-morning/

Fosun International received S&P Global Rating’s latest report

Fosun has flexibility to replenish cash and has adequate resources to manage debt maturities

, /PRNewswire/ — Fosun International Limited (HKEX stock code: 00656, “Fosun International”) received S&P Global Rating’s latest report published yesterday, where it points out that Fosun has adequate resources to meet its upcoming debt maturities over the next six to 12 months and that it believes the company could rely on asset monetization and stable banking relationships to manage its liquidity.

According to Fosun International’s 2021 annual report, Fosun International has a sound and healthy financial position. As of the end of 2021, the total debt to total capital ratio dropped to 53.8%; the average cost of debt was at a historically low of 4.6%; cash, bank balances and term deposits reached RMB96.78 billion. In terms of cash and debt management, Fosun has always adhered to the principle of proactive management of maturing debts and continuous optimization of debt structure, and has built financing capabilities with diversified financing channels and wide recognition from the market. The Group and its subsidiaries have established partnerships with more than 100 Chinese and foreign banks around the world and have signed strategic cooperation agreements with many international banks and multiple Chinese banks. Facing the volatility of the public market, Fosun made full use of its diversified financing channels to maintain stable liquidity.

On 22 June 2022, Fosun International announced an update on outstanding tender offer to accept Any-and-All for full outstanding principal amount of its only two offshore bonds maturing this year. The two offshore bonds are FOSUNI 5.5% 2023 US dollar bond puttable in August this year, at the amount about USD380 million, and Euro bond FOSUNI 3.3% 2022 maturing in October this year, at the amount about EUR384 million. These two bonds are the Company’s only maturing offshore bonds this year. The expiration deadline is 4 July 2022 and the purchase price of these two bonds is redeemable at 100% of face value.

S&P Global Rating said the current market sentiment toward high-yield privately-owned enterprise (POE) issuers in both onshore and offshore markets is weak. Fosun’s tender offer on 22 June to repurchase all offshore notes due this year (totaling about US$800 million) reflects its efforts to ease recent market skepticism. S&P Global Rating believes that Fosun can use secured debts, bank borrowings, as well as asset sales to settle the maturities. S&P Global Rating believes Fosun can well manage its maturities and expects Fosun’s offshore and onshore bank facilities will increase this year, and the company’s banking relationships are unlikely to be hit in the near future. In addition, S&P Global Rating believes Fosun’s considerable asset scale with a global presence, its diversified investment portfolio and ability to strike a balance between investments and divestments, could offer Fosun’s flexibility to recycle assets and replenish cash.

On 8 June 2022, S&P Global Rating published a report, maintaining Fosun International outlook as “Stable”; and affirmed “BB” on Fosun International’s long term issuer credit rating and its guaranteed senior unsecured debt. In view of the recent volatile market environment, S&P Global Rating maintained “BB Stable” credit rating to Fosun, demonstrating its affirmation on Fosun’s efforts in debt management and endogenous growth strategy.

Fosun has been steadfastly fulfilling its mission of “creating happier lives for families worldwide”, strengthening its presence in four business segments: Health, Happiness, Wealth and Intelligent Manufacturing. It is also one of the few companies in China which has global operation and investment capabilities and has built up a solid technology and innovation capabilities. In the face of the volatile epidemic situation and many external uncertainties, Fosun maintained a stable leverage ratio, high risk tolerance with its multi-currency debts and stable debt maturity, maintaining a healthy financial position.

In the future, Fosun will protect itself against market risk with a diversified business portfolio, a global asset presence, and the “Profound Industry Operations + Industrial Investment” strategy, and will continue to adhere to strict financial and capital management systems, further consolidate the Company’s capital foundation, and grasp opportunities amid global market fluctuations and changes, thereby making solid yet bold progress for its growth and development.

About Fosun

Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth, and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). In 2021, Fosun International’s total revenue was RMB161.3 billion and total assets amounted to RMB806.4 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.

Cision View original content:https://www.prnewswire.com/news-releases/fosun-international-received-sp-global-ratings-latest-report-301574628.html

SOURCE Fosun

Markets Insider and Business Insider Editorial Teams were not involved in the creation of this post.

Source: https://markets.businessinsider.com/news/stocks/fosun-international-received-s-p-global-rating-s-latest-report-1031547584?op=1

Bill Gates blasts cryptocurrencies, NFTs as based on ‘greater-fool’ theory

Billionaire Bill Gates dismissed cryptocurrency projects such as nonfungible tokens as shams “based on the greater-fool theory” at a climate conference Tuesday, reviving past criticisms of digital assets.

“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Gates said sarcastically while speaking at an event in Berkeley, California hosted by TechCrunch. He said he’s neither long nor short the asset class.

Gates has criticized crypto before, sparring with Elon Musk last year over whether Bitcoin is too risky for retail investors and the environmental harm of mining coins. Speaking Tuesday as the founder of Breakthrough Energy Ventures, the climate-focused fund he began in 2015, Gates noted the difficulty of recruiting Silicon Valley engineers to work in industries like chemicals and steel production in need of lower greenhouse gas emissions.

Bitcoin plunged more than 15% Monday and another 5.4% Tuesday, part of a broader crypto selloff fueled by higher than forecast US inflation and the halt of withdrawals by the lending platform Celsius. Popular NFT collections, including the celebrity-favored Bored Ape Yacht Club (BAYC), are also being hit hard.

Gates also defended digital banking efforts he’s supported through his philanthropic foundations, which he described as “hundreds of times more efficient” than cryptocurrencies.

Michael Bloomberg, founder and majority owner of Bloomberg LP, is a backer of Breakthrough Energy Ventures.

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Source: https://www.business-standard.com/article/international/based-on-greater-fool-theory-bill-gates-blasts-cryptocurrencies-nfts-122061500129_1.html

American Investors Are ‘Desperate’ to Sell the Shiba Inu Crypto

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

A recent study has revealed that Shiba Inu (SHIB-USD) investors across the U.S. are eager to sell the SHIB crypto. The study, conducted by the team behind non-fungible token (NFT) project Los Muertos, analyzed Google Trends data to determine which crypto investors are trying to sell most in each state. In 19 states, the Shiba Inu crypto took the top spot for most searched name by prospective sellers.

“The cryptocurrency market has seen the biggest crash in history this year, with prices across all cryptocurrencies dipping as a result,” stated the founder and creator of Los Muertos, Gonku, in an email to InvestorPlace. “This study offers incredible insight into where various cryptocurrencies are potentially being sold from across America, with Shiba Inu being the most popular to sell on the internet. It will be interesting to see if these findings will be reflected in future prices.”

Bears Close in on the Shiba Inu Crypto

Bearish energy has been clouding crypto markets since the last Federal Reserve rate hike. And the Shiba Inu crypto is certainly not immune. Prices have been plunging since last week and show no signs of a rebound anytime soon. This is not unique to SHIB, but considering its recent performance, it is hardly surprising that investors would be desperate to jump ship before prices slip even more.

InvestorPlace contributor Omor Ibne Ehsan recently placed Shiba Inu on a list of cryptos to sell before they spiraled even further. According to Los Muertos’ research, many investors are eager to follow that advice. According to a statement from Los Muertos received by InvestorPlace via email,

“The analysis revealed that Shiba Inu had the highest number of states wanting to sell the cryptocoin with a total of nineteen states, including Florida, Nevada, New York and Tennessee. Shiba Inu is one of the most affected coins from the recent cryptomarket crash, however, it has been predicted that the coin will rebound and rise to $0.00015 in 2023.”

Next on the list is Bitcoin (BTC-USD), with top seller interest in 17 states, including Oregon, Kansas, Illinois and Pennsylvania. Dogecoin (DOGE-USD) ranked third, as it is the top searched crypto to sell in eight states. Ethereum (ETH-USD) and Cardano (ADA-USD) round out the list, with four and three states, respectively.

What It Means

This presents an interesting paradox. It’s hardly surprising that investors want to sell a meme coin with little real-world utility amid a severe crypto crash. That also applies to Dogecoin, the first meme token, which has remained relevant mostly because of Elon Musk. If investors see crypto as an unstable investment, they will see meme coins as the biggest risk of all. A survey from market research firm Finder recently revealed that 70% of experts see the Shiba Inu crypto hitting $0 by 2030.

But Bitcoin is the leader of the crypto market and the largest by market capitalization. Where Bitcoin goes, so go other major cryptos. Ethereum has the second-largest market cap, and Cardano isn’t far behind. Trust in BTC is declining quickly, but many investors still consider ETH and ADA as more stable investments.

This may be because both cryptos still seem to have significant utility. As InvestorPlace contributor Alex Sirois noted, “An emerging NFT marketplace, increasing transaction throughput speeds and a research partnership … could lead to positive developments for Cardano.” And Ethereum has garnered praise for its 2.0 upgrade, credited with increasing utility and reducing energy use.

Price predictions for Shiba Inu crypto remain fairly bullish. But it’s clear that right now, investors don’t want to take their chances.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Source: https://styles.markets.businessinsider.com/news/stocks/american-investors-are-desperate-to-sell-the-shiba-inu-crypto-1031528985?op=1

Cryptocurrencies lose $2 trillion in value since 2021 peak

The total value of cryptocurrencies dropped below $1 trillion on Monday, as bitcoin and other crypto assets plunged in price. The fall marked a new low that has seen more than $2 trillion wiped off the value of cryptocurrencies since the peak in November 2021.

According to crypto data website Coinmarketcap, the market capitalization (total value) of cryptocurrencies reached a peak of $2,977 billion on November 10, just $23 billion short of $3 trillion. Since then, the value of cryptocurrencies has fallen in steps, with small recoveries, to less than $977 billion, a fall of over $2 trillion since the peak.

The last trillion in value has been lost in just 60 days. Overall cryptocurrency market cap was over $2 trillion on April 13.

The recent decline has been dramatic. Bitcoin—the largest crypto currency—has lost more than 10 percent in the last 24 hours, and is now trading at below $24,000. It was as high as $67,000 in November.

Crypto market cap June2022

Investors in cryptocurrencies are facing several drivers of negative sentiment. Increasingly, cryptocurrencies have become correlated with traditional stock markets—the NASDAQ in particular—rather than being an alternative asset or hedge.

The interest rate rises from the U.S. Federal Reserve to try to curb inflation have pushed prices down in markets generally. Combine that with the Russian invasion of Ukraine which has made investors more risk-averse, and 2022 has been a tough year for crypto.

Antoni Trenchev, co-founder and managing partner of crypto lender Nexo told Bloomberg: “Cryptos remain at the mercy of the Fed and stuck in a merry dance with the Nasdaq and other risk assets.”

He added: “We’re hearing Bitcoin forecasts in the mid-teen and single-digit thousands which tells you the type of macro environment crypto is facing for the first time—and the levels of fear.”

The effect has been dramatic. One coin, Luna, has effectively become worthless in recent weeks, crashing from $87 to zero in May. Coinbase, the crypto exchange, reported a $430 million net loss in the first quarter and a decline of over two million active users.

On Monday Celsius, a cryptocurrency lending platform, said it was pausing all withdrawals and transfers.

The company said in a memo: “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”

Celsius has emerged to become one of the leaders in crypto lending, with the company stating in a recent post that it has over 1.5 million users holding over $17 billion in total assets.

Crypto illustrationAn illustration picture taken in London on May 8, 2022, shows gold plated souvenir cryptocurrency Tether (USDT), Bitcoin and Ethereum coins arranged beside a screen displaying a trading chart. Crypto market cap has dropped below $1 trillion. Getty Images

Source: https://www.newsweek.com/cryptocurrencies-lose-trillion-value-since-peak-1715207

First Mover Asia: Bitcoin Tumbles Below $27K Amid Heightening Inflation Concerns

Good morning. Here’s what’s happening:

Prices: Bitcoin and other cryptos have a lost weekend.

Insights: Is there a case for inflation?

Technician’s take (Editor’s Note): In place of the usual technical analysis, First Mover Asia is republishing an essay by CoinDesk columnist David Z. Morris on this weekend’s Consensus 2022 event.

Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis. And sign up for First Mover, our daily newsletter putting the latest moves in crypto markets in context.

Prices

Bitcoin (BTC): $26,759 -5.9%

Ether (ETH): $1,447 -5.4%

Biggest Gainers

There are no gainers in CoinDesk 20 today.

Biggest Losers

Asset Ticker Returns DACS Sector Chainlink LINK −10.9% Computing Cardano ADA −10.8% Smart Contract Platform Solana SOL −9.3% Smart Contract Platform

Bitcoin Falls and Then Falls Some More

Still stinging from Friday’s inglorious consumer price report that showed inflation rising, crypto investors spent much of the weekend in a defensive crouch.

Bitcoin was recently trading around $26,700, off more than 8% since late Friday. The largest cryptocurrency by market capitalization had been lingering around $30,000 for a month.

Altcoins were harder hit with ether falling to its lowest level in more than 14 months. The second largest crypto by market cap was recently trading at roughly $1,450, off more than 15% over the weekend. Ether had spent much of the past month at roughly $1,800. AVAX and AXS were each recently down by over 20% since Friday. The price plunges underscored investors’ risk wariness – the more risky the asset, the more wary.

“Altcoins have historically underperformed BTC during bearish phases, and currently they have the added pressure of potential regulatory roadblocks given the nature of their issuance, especially via token sales and such,” Joe DiPasquale, the CEO of crypto fund manager BitBull, wrote to CoinDesk. “Only a small number of Altcoins can realistically survive such market movements and even fewer are likely to see previous all time highs in terms of price.”

Cryptos’ declines tracked equity markets, which plummeted Friday after the latest CPI, which some observers thought would tick slightly better for consumers, rose to 8.6% annually, a more than 40-year high that suggested rising prices would be around for awhile. The tech-focused Nasdaq plunged 3.5%, while the S&P 500 and Dow Jones Industrial Average were off over 2.5%.

In the CPI, airline fare prices jumped over 12%, a result of rising fuel prices that have worsened since Russia invaded Ukraine in February. U.S. gasoline prices topped $5 per gallon, and as demand increases during the traditional summer travel season, seem likely to ripple not only through family budgets but businesses who must now factor in additional fuel costs into their pricing. The University of Michigan’s consumer sentiment plunged more than eight points to its lowest level in 14 years with more than half of those individuals surveyed tying their opinions to rising prices.

Investors are widely expecting the U.S. central bank to boost interest rates a half percentage point later this week as part of an ongoing effort to quell inflation. Last week, the central banks of Australia and Canada, where inflation has also soared, increased rates 50 basis points, while the European Central Bank said it would end asset purchases and begin rate hikes later this summer.

“We expect major central banks to quickly and methodically continue removing accommodation via quantitative tightening (QT) and policy rate hikes into 2023,” First Republic Bank said in a weekly review for investors.

“Markets will also remain very fragile, as today’s negative reaction to the higher than expected inflation print demonstrated,” First Republic added. “We expect this fragility to continue whipsawing markets.”

For cryptocurrencies, which have correlated with equity markets increasingly over the past year, the path forward is at best uncertain, DiPasquale said.

“Last week, we mentioned that the probability of a breakdown was higher despite BTC showing signs of support,” he wrote. “That breakdown is currently in play, and we will be looking for potential new lows and reactions to them as we assess market sentiment. The inflation figures definitely don’t bode well for markets.”

Markets

S&P 500: 3,900 -2.9%

DJIA: 39,392 -2.7%

Nasdaq: 11,340 -3.5%

Gold: $1,876 -0.2%

Insights

Is There a Case for Inflation?

Cryptocurrency evangelists trumpet digital assets’ ability to hold if not decrease the price of goods and services more loudly than perhaps any other of their benefits.

They argue that deflation is more desirable than inflation, and have been conveniently able to highlight the havoc that the current inflationary surges have played with investor nerves and the global economy. Last Friday’s consumer price index (CPI) showing an 8.6% jump in prices, the highest in more than four decades, only heightened fears that central banks’ more hawkish monetary policies were failing to lower costs or prevent a recession.

Yet in an op-ed Friday, Paul Brody, the global blockchain leader for consulting powerhouse EY and a CoinDesk contributor, asserted that inflation is preferable to deflation and that the current spike in prices is temporary.

“Let’s start with the most foundational error common across multiple crypto ecosystems: the idea that deflationary systems are better than inflationary ones,” Brody writes, noting that Ethereum advocates are as adamant as “bitcoin maximalists.”

“The theory is appealing: If you have crypto and the rate at which new crypto is added goes to zero or starts to go negative, the value of your crypto should rise,” he writes. “The hidden assumption in there is that demand for said crypto remains the same or goes up.”

Yet Brody writes that “deflationary ecosystems” have historically failed, including most notably during the Great Depression when the U.S. abandoned its gold standard.

Brody notes that consumers in times of deflation are more likely to hold currency that they expect will gain value over time, boosting savings but sinking demand for products and services, while during inflation, they are apt to spend. But he also makes the key point that perfect price stability is “an impossible and unreasonable target.”

“All things being equal, a little inflation is better than a little deflation,” Brody writes, adding that central banking efforts the past two years first to boost the economy by keeping interest rates low and then to control inflation are not the disaster that some critics are contending. “Inflation and central banks seem to be performing exactly as intended,” he writes.

“Monetary and fiscal policy isn’t an exact science,” he writes, and compares the issues created by the pandemic to post World War II when inflation rose 18% before settling.

Some crypto advocates mistakenly believe that digital assets offer a solution to inflation. But they may be targeting the wrong issue. “Pushing for ever more deflationary architectures will certainly please the HODLers,” Brody writes, but it won’t further Ethereum’s cause, bitcoin or any other cryptocurrency.

Technician’s Take

(Editor’s Note: In place of Technician’s Take, First Mover Asia is republishing this essay by CoinDesk columnist David Z. Morris on this weekend’s Consensus 2022 event.)

No One Is Saying ‘Crypto Winter’ at Consensus

AUSTIN, Texas — We’ve wrapped up the first full public day of Consensus, and I’ve been asked to share my thoughts about what I’m seeing from the ground. But it’s hard to think of anything more meaningful to say than simply:

Wow.

Woah.

Dang.

For a bit of context, CoinDesk held the very first Consensus event just under seven years ago, in 2015. Attendance was a whopping 500 people.

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Consensus 2022: Day One Recap

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This year’s Consensus is the first in-person iteration of the conference since the start of the coronavirus pandemic in 2020. The most recent attendance number I’ve heard for this year’s event is 17,000.

So yeah. Wow. Woah. Dang.

I’ve attended most of the Consensus conferences since 2016, and one point of reference in particular stands out – the infamous 2018 conference at New York’s Marriott Marquis. It was the height of post-initial coin offering mania, and though the mood was beginning to turn sour, the event attracted nearly 9,000 attendees.

See also: US Stablecoin Law Could Actually Pass This Year, Lawmakers Say

That was seemingly too much for the Marriott’s space to handle: The registration lines give attendees trauma flashbacks to this day. That grim memory is one reason we made the move to Austin, Texas, where I’m ecstatic to report that I’ve seen no such traffic jams so far despite almost double the attendance.

An even more interesting comparison to 2018 is the vibes, man. The 2018 event came after a brutal market crash, with bitcoin (BTC) trading at about $6,600 during the event (down 66% from the local peak just shy of $20,000 the preceding December). The mood was fairly grim.

This year’s event was also preceded by a market crash. Bitcoin is down 57% from its all-time high of $67,000 set last November. But unlike in 2018, it’s hard to find a downcast eye or frowning face at Consensus 2022.

The convention center is packed with curious attendees hungry for knowledge about decentralized autonomous organizations (DAO), Ethereum scaling solutions and all kinds of relatively arcane, future-forward or speculative matters that don’t have much to do with the current market but could pay off big-time in the long run.

It’s true that markets in crypto are highly tied to sentiment – but for the most dedicated, it’s increasingly clear that sentiment isn’t entirely tied to markets. And that group is growing.

Another notable new presence at Consensus: real, widespread, in-your-face diversity. We’ve been talking for years about how the openness of crypto would make it accessible for a much broader spectrum of people, and we’re starting to see that really happen. As someone who grew up and lives in a multiracial environment, it made me feel particularly great to see a lot of Black folks in attendance, onstage and backstage. No small kudos for that has to go to the efforts of CoinDeskers and contributors including Isaiah Thomas, Tyrone Ross and Spencer Dinwiddie.

See also: Consensus Compared: Why 2022 Feels Different | Opinion

Unfortunately, Consensus’ growth also means more chances for attendees to misbehave. If you want to keep your dignity and reputation intact, you might want to avoid having full-length conversations while watching a panel, sneaking into unauthorized areas to pitch journalists or bringing a loudspeaker to disrupt panels (all behaviors I’ve seen in the last two days).

There’s a lot to gain at Consensus – but there’s even more to lose, if you leave people in the industry convinced you’re a jackass. Just because we have fun and make our own rules doesn’t mean we’re not respectful of each other.

Amid everything else, I managed to moderate a few panels on Thursday at the Big Ideas stage, put together by the Layer 2 features and opinion team. I got to talk about DAO design with Ellie Rennie from RMIT and others, and also had a VERY weird and fun conversation with Chris Gabriel, AKA YouTube’s MemeAnalysis. For those who couldn’t make it or watch the streams of those events, we’ll likely have some clips and write-ups available soon.

Of course, it would have been a whole lot cooler if you’d seen it all in person. Here’s hoping that next year you’ll join us.

Important events

2 p.m. HKT/SGT(6 a.m. UTC): U.K. trade balance (April)

2 p.m. HKT/SGT(6 a.m. UTC): U.K. gross domestic product (April)

2 p.m. HKT/SGT(6 a.m. UTC): U.K. Industrial production (April/YoY)

CoinDesk TV

In case you missed it, here is special coverage from Consensus 2022 on CoinDesk TV:

The Pseudonymous Philosopher: Punk6529’s Vision for Our Decentralized Future

Punk6529 joined Consensus 2022 in Austin, Texas. Moderator: Michael Casey, CoinDesk Chief Content Officer.

Headlines

Binance CEO Changpeng Zhao Questions SEC Investigation into BNB: The founder of the world’s largest crypto exchange stopped short of denying SEC interest in Binance’s exchange token

‘You Will Be Fired’: Coinbase CEO Brian Armstrong Lambastes Anonymous ‘Operation Revive COIN’ Petitioner: An online petition claiming to come from a Coinbase employee(s) called for the removal of a number of company executives.

Edward Snowden Says Use Crypto, Don’t Invest in It: Speaking remotely at Consensus 2022, the whistleblower also described most of those who signed a recent anti-crypto letter to Washington as “prolific public trolls.”

Wanna Bet? Crypto Prediction Markets Could Be a New ‘Source of Truth’: Andrew Eaddy and Clay Graubard made the case for empowering individuals through technology as trust in institutions declines.

Texas Feels Like Bitcoin Country (Maybe Because I Was There for a Bitcoin Conference): A Bitcoin developer conference last week put three important Bitcoin themes in focus: lightning, design and education.

Longer reads

Consensus Compared: Why 2022 Feels Different: There are echoes to 2018. But, on many metrics, this year’s event isn’t the same at all, says CoinDesk’s chief content officer.

Today’s crypto explainer: Location, Location, Location: Investing in Real Estate in the Metaverse

Other voices: Who Pays for Crypto’s Collapse? (The Wall Street Journal)

Said and heard

“The breadth of inflation pressures in the economy should alarm the Fed,” (ING Chief International Economist James Knightley in The Wall Street Journal) … “This year’s event was also preceded by a market crash. Bitcoin is down 57% from its all-time high of $67,000 set last November. But unlike in 2018, it’s hard to find a downcast eye or frowning face at Consensus 2022. The convention center is packed with curious attendees hungry for knowledge about decentralized autonomous organizations (DAO), Ethereum scaling solutions and all kinds of relatively arcane, future-forward or speculative matters that don’t have much to do with the current market but could pay off big-time in the long run. (CoinDesk columnist David Z. Morris) … “Through informed decision-making, users can reduce their exposure to the wild risks seen with Terra. So while the current atmosphere may seem hostile, we have a unique opportunity to show the world that secure, regulated stablecoins exist.” (Binance CEO Changpeng Zhao for CoinDesk) … “More than a half of all merchants agree to accept crypto.” (Ukraine Deputy Minister of Digital Transformation Alex Bornyakov to CoinDesk)

This story originally appeared on Coindesk

CoinDesk TV

Source: https://markets.businessinsider.com/news/currencies/first-mover-asia-bitcoin-tumbles-below-27k-amid-ongoing-inflation-concerns-1031523775?op=1