Luc Smits van Oyen
Weekly crypto news: US inflation rises to 8.5%
It was a slightly quieter week this week (April 8, 2022 to April 15) in terms of news and price action than in previous weeks for the crypto market. Bitcoin dragged the rest of the market into a dip of about 10%, but the situation now seems stable again. At the beginning of the week, Bitcoin was at €40,000 and the number one cryptocurrency now stands at €37,500.
In this week's news summary you will find, among other things, more extensive price analysis of Bitcoin and other cryptocurrencies, but also, for example, the interesting news that the Amsterdam Stock Exchange now offers cryptocurrencies through ETP Valor. Read along for the most important crypto news of this week!
Swiss asset manager Valor Inc Exchange launched exchange traded products (ETPs) for Cardano, Polkadot and Solana this week. Valor Cardano, Valor Polkadot and Valor Solana are now tradable on Euronext exchanges in Amsterdam and Paris.
The following was announced in Valor's official press release:
"The ETPs will enable retail and institutional investors to easily and securely gain exposure to ADA, DOT and SOL tokens through their bank or broker."
These are important news items for the crypto market, as it is still "scary" and complicated for a lot of people to purchase crypto themselves. Now people in the Netherlands can also get exposure to cryptocurrencies through the stock market. This will ultimately benefit the adoption of crypto.
Inflation in the United States continued to rise in March, mainly due to higher fuel prices caused by the war in Ukraine. According to the U.S. government, inflation reached 8.5 percent on an annual basis last month. This is the highest level since December 1981.
In February, consumer prices in the world's largest economy still rose by 7.9 percent. Inflation in the U.S. has now been above 6 percent for six months in a row. Prices at the pump for Americans rose to record highs in March. But food products have also become more expensive due to the war in Ukraine.
Bitcoin is known for being a hedge against inflation, that is, Bitcoin (like gold) is supposed to serve as a kind of protection against inflation. If your money is rapidly becoming less valuable, then Bitcoin, and also gold, are seen as good alternatives. Rising inflation already caused hefty price increases in 2021, so it‘s interesting to see if this will be the same in 2022.
Two days ago, Bloomberg analyst Mike McGlone wrote that crypto is on an "unstoppable trajectory" to enter the global mainstream. And that BlackRock's investment in stablecoin issuer Circle only further underscores this development. Circle announced today that it has received $400 million in investments from a number of big names.
Circle is the publisher of the well-known and large stablecoin USD coin (USDC). Wealth manager Blackrock, financial services firm Fidelity and Marshal Walace were among the big names, but the investment from Blackrock is the most interesting. In fact, Circle and Blackrock are also entering into a broader strategic partnership with each other.
Reportedly, BlackRock will become the primary asset manager of the cash reserves that support USDC's value. In addition, the two will begin to explore how USDC can be used within the capital markets.
Bitcoin fell from a high of €40,000 this week to a low of €36,300. It now stands at €37,500, where it appears to have stabilized. If we look at a 3-month timeframe, we also see that Bitcoin makes a "higher low" each time, meaning that the lows are found at a higher price each time. This is generally a sign of an uptrend.
The highs are also higher each time, making it clear that Bitcoin is in an upward channel. The most recent high was at €43,000 and the two highs before that at €40,000 and €38,000.
As long as Bitcoin stays above €36,000, it will maintain this bullish trend. If it drops below that, there is a chance that a further decline awaits.
With the current inflation rate, it remains interesting to invest your money, rather than save it, which also keeps the crypto market popular. Nevertheless, it remains advisable to reconsider your positions often, as there is a lot going on in the world right now that can affect returns. For example, with the expected interest rate hikes later this year, stocks and crypto could receive a hit.
In this week's news summary you will find, among other things, more extensive price analysis of Bitcoin and other cryptocurrencies, but also, for example, the interesting news that the Amsterdam Stock Exchange now offers cryptocurrencies through ETP Valor. Read along for the most important crypto news of this week!
Amsterdam stock exchange offers cryptocurrencies through ETP Valor
Swiss asset manager Valor Inc Exchange launched exchange traded products (ETPs) for Cardano, Polkadot and Solana this week. Valor Cardano, Valor Polkadot and Valor Solana are now tradable on Euronext exchanges in Amsterdam and Paris.
The following was announced in Valor's official press release:
"The ETPs will enable retail and institutional investors to easily and securely gain exposure to ADA, DOT and SOL tokens through their bank or broker."
These are important news items for the crypto market, as it is still "scary" and complicated for a lot of people to purchase crypto themselves. Now people in the Netherlands can also get exposure to cryptocurrencies through the stock market. This will ultimately benefit the adoption of crypto.
Inflation US at highest point since 1981
Inflation in the United States continued to rise in March, mainly due to higher fuel prices caused by the war in Ukraine. According to the U.S. government, inflation reached 8.5 percent on an annual basis last month. This is the highest level since December 1981.
In February, consumer prices in the world's largest economy still rose by 7.9 percent. Inflation in the U.S. has now been above 6 percent for six months in a row. Prices at the pump for Americans rose to record highs in March. But food products have also become more expensive due to the war in Ukraine.
But what does this mean for Bitcoin?
Bitcoin is known for being a hedge against inflation, that is, Bitcoin (like gold) is supposed to serve as a kind of protection against inflation. If your money is rapidly becoming less valuable, then Bitcoin, and also gold, are seen as good alternatives. Rising inflation already caused hefty price increases in 2021, so it‘s interesting to see if this will be the same in 2022.
Blackrock and Fidelity invest big in USDC
Two days ago, Bloomberg analyst Mike McGlone wrote that crypto is on an "unstoppable trajectory" to enter the global mainstream. And that BlackRock's investment in stablecoin issuer Circle only further underscores this development. Circle announced today that it has received $400 million in investments from a number of big names.
Circle is the publisher of the well-known and large stablecoin USD coin (USDC). Wealth manager Blackrock, financial services firm Fidelity and Marshal Walace were among the big names, but the investment from Blackrock is the most interesting. In fact, Circle and Blackrock are also entering into a broader strategic partnership with each other.
Reportedly, BlackRock will become the primary asset manager of the cash reserves that support USDC's value. In addition, the two will begin to explore how USDC can be used within the capital markets.
Bitcoin price analysis
Bitcoin fell from a high of €40,000 this week to a low of €36,300. It now stands at €37,500, where it appears to have stabilized. If we look at a 3-month timeframe, we also see that Bitcoin makes a "higher low" each time, meaning that the lows are found at a higher price each time. This is generally a sign of an uptrend.
The highs are also higher each time, making it clear that Bitcoin is in an upward channel. The most recent high was at €43,000 and the two highs before that at €40,000 and €38,000.
As long as Bitcoin stays above €36,000, it will maintain this bullish trend. If it drops below that, there is a chance that a further decline awaits.
With the current inflation rate, it remains interesting to invest your money, rather than save it, which also keeps the crypto market popular. Nevertheless, it remains advisable to reconsider your positions often, as there is a lot going on in the world right now that can affect returns. For example, with the expected interest rate hikes later this year, stocks and crypto could receive a hit.