US Fed hikes interest rates, Bitcoin plunges below $36K, and Argentina’s central bank says no to financial institutions offering crypto: Hodler’s Digest, May 1-7
The US Federal Reserve raised their interest rates last week and the market reacted accordingly with a few minor dips in price, however cryptocurrency markets have been hit hard by this news. Bitcoin fell below $36K as Argentina’s central bank said they will not allow financial institutions to offer crypto services. A quick recap of recent events that could affect the future of blockchain-powered games:
The “bitcoin price” is the world’s most popular cryptocurrency and has been on a wild ride in recent weeks. The US Fed has announced that it will be hiking interest rates, which could have an impact on the Bitcoin market. Argentina’s central bank said no to financial institutions offering crypto, but this was not enough to stop the Bitcoin plunge.
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the finest (and worse) remarks, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
In order to fight inflation, the Fed raises interest rates by 50 basis points.
The Federal Open Market Committee (FOMC) of the United States decided on Wednesday to raise interest rates by 0.5 percent, the largest increase in almost two decades. It was the second rate hike in 2022, with a total of seven hikes predicted for the year.
Following the FOMC meeting, Federal Reserve Chair Jerome Powell reiterated the need to keep increasing interest rates to fight inflation at a news conference.
Goldman Sachs provided Coinbase with the first Bitcoin-backed loan.
By utilizing Bitcoin as collateral for a loan with Goldman Sachs, Coinbase made a significant step toward bridging the gap between the mainstream and the crypto sector. The agreement involves Coinbase taking out a loan from Goldman Sachs that was secured by part of the exchange’s Bitcoin assets. However, no figures were given.
According to Brett Tejpaul, CEO of Coinbase Institutional, “Coinbase’s partnership with Goldman represents a first step towards the acknowledgment of crypto as collateral, which strengthens the bridge between the fiat and crypto markets.”
Binance will invest $500 million in Twitter with Elon Musk.
Tesla CEO Elon Musk announced his intention to buy Twitter for $44 billion in April 2022, subject to certain clearances. The $44 billion comes not just from Musk’s wallet, but also from 19 other investors. Binance and Sequoia Capital Fund are two of the largest donors, each putting up $500 million and $800 million.
BitMEX founders must pay a $30 million civil penalty, according to the court.
Following a court ruling on Thursday, BitMEX co-founders Benjamin Delo, Arthur Hayes, and Samuel Reed were ordered to pay a total of $30 million in civil fines ($10 million apiece) for legal violations related to the BitMEX exchange.
Among the alleged violations were a failure to meet certain consumer data obligations, as well as a failure to get required regulatory permissions. The $30 million legal saga follows a string of past legal troubles.
The SEC has increased the number of units regulated by the agency.
The Securities and Exchange Commission (SEC) aims to expand its Crypto Assets and Cyber Unit, which is in charge of overseeing the crypto business. The unit will be expanded by 20 personnel, increasing the overall team size to 50.
In terms of people, the new employees will approximately double the unit’s existing size. SEC Chairman Gary Gensler praised the measures, although one of the commission’s members, Hester Peirce, expressed reservations.
Losers and Winners
Bitcoin (BTC) is at $35,983, Ether (ETH) is at $2,689, and XRP is at At the end of the week, Bitcoin (BTC) is at $35,983, Ether (ETH) at $2,689 and XRP at $0.59. The total market cap is at $1.65 trillion, according to CoinMarketCap..59 at the conclusion of the week. According to CoinMarketCap, the overall market cap is $1.65 trillion.
TRON (TRX), Anchor Protocol (ANC), and Algorand (ALGO) are the top three altcoin gainers this week, with gains of 27.92 percent, 17.18 percent, and 10.21 percent, respectively, among the top 100 cryptocurrencies.
ApeCoin (APE), STEPN (GMT), and Kava (KAVA) are the top three cryptocurrency losses this week, with -39.48 percent, -34.06 percent, and -27.18 percent, respectively.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“When I think about Bitcoin, I think of the early internet.” [The government] was caught off guard, and now it’s a legitimate kind of cash that can be used to purchase stuff.”
Podcaster Joe Rogan
“If you simply overlay the Nasdaq and cryptocurrency markets right now, they’re insanely connected, so I believe that’s causing a lot of churn and misery in the markets.” During this time, billions of dollars are being invested on Web3.”
SkyBridge Capital’s founder and managing partner, Anthony Scaramucci
“I wouldn’t accept it if you told me you had all of the Bitcoin in the world and gave it to me for $25 because what would I do with it?”
Berkshire Hathaway CEO Warren Buffett
“What makes an artwork worth ten million dollars?” It’s an oil painting on canvas. As a result, value is determined by the beholder.”
Citadel Securities’ founder and CEO, Ken Griffin
“Why are you going to put so much work into establishing a […] stablecoin payment system if the Fed is just going to wipe you out?”
Former Vice Chair of the Federal Reserve’s Supervision Committee, Randal Quarles
“The NFT market is in free fall.”
The Wall Street Journal reporter Paul Vigna
The Week’s Prediction
Bitcoin falls 1,000 points to $35.5K. The Dow has had its worst trading day since 2020.
Bitcoin’s price has been falling over the last week. The price of Bitcoin fell below $36,000 on Thursday, affecting both crypto and traditional financial markets.
In terms of optimistic vs bearish storylines, some technical analysts believe the $37,500 level to be the dividing line. Bitcoin’s decline below that level indicates that its short-term outlook has shifted to negative.
The Week’s FUD
Warning: Smartphone SMS prediction predicts the seed phrase of a crypto hodler.
Andre, a.k.a. u/Divinux, recently issued a warning on Reddit, noting that if the owner’s crypto seed phrase has been typed on the device, the phone’s predictive text might possibly guess the phrase. Andre replicated his findings on a variety of devices, with comparable results. This might put the owner of the mobile phone at danger of crypto theft.
So far in 2022, DeFi has yielded more than $1.6 billion.
According to statistics from blockchain security company CertiK, crypto-related theft through hacks and other criminal behavior in 2022 has already surpassed the two previous years combined. In sum, nearly $1.6 billion in crypto assets had been appropriated in 2022.
Having said that, context is crucial. According to DeFi Llama, the decentralized finance industry has risen in value over the last two years and now stands at over $200 billion in total value locked.
Argentina’s central bank intervenes to prevent banks from launching fresh cryptocurrency offers.
According to a regulation by Argentina’s Central Bank, or BCRA, financial institutions are prohibited from offering crypto trading to consumers. The central bank justified its decision by citing well-known issues about cryptocurrency, such as a lack of effective regulation.
A couple of prominent Argentinian banks announced intentions to sell some crypto assets to consumers earlier this week, just before the BCRA’s move.
Cointelegraph’s Best Features
Here’s how blockchain games may succeed in the mainstream.
According to one notable investor, most P2E games are “crap.” But they have the potential to be so much more.
Blockchain technology is gradually making its way into everyday life.
Blockchain technology is making its influence known in households, from green seafood to Bored Apes.
The Metaverse’s creator economy will boom, but not under Big Tech’s control.
Decentralization should allow independent innovators and artists to resist Big Tech’s restrictions, particularly in the Metaverse.
The “US Fed hikes interest rates, Bitcoin plunges below $36K, and Argentina’s central bank says no to financial institutions offering crypto: Hodler’s Digest, May 1-7” is a blog post written by Hodler. The article discusses the US Fed raising interest rates, Bitcoin crashing to $36K, and the Argentinean Central Bank refusing to allow financial institutions offer cryptocurrencies. Reference: fed interest rates crypto.