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The bitcoin rate over the past seven days has fallen by 3.98%. The highest values of the asset reached May 23, when 1 BTC was traded at $ 30,670, the minimum indicators were noted on May 26 – $ 28,019 per coin. As of May 27, 12:00 Moscow time, the bitcoin rate is $ 28,983 (according to Binance).
The cost of the second largest cryptocurrency by capitalization, Ethereum, has decreased by 12.58% over the past seven days. The native token of the cryptocurrency exchange Binance (BNB) lost 3.42%.
The total capitalization of the crypto market for the week decreased from 1.29 to 1.19 trillion dollars, with 46% dominance of bitcoin. The share of Ethereum is 17.8%.
Development of the situation with Terra
After the collapse of the rates of the terraUSD (UST) stablecoin and the LUNA token that provides it, the developers, with the support of the community, decided to launch a new Terra 2.0 blockchain.
The launch of Terra 2.0 will occur on May 28 (according to the latest update from the developers). The snapshot “before the attack” is considered to be May 7, 2022, and a snapshot will also be made before the launch of the new network. Based on these two snapshots, a drop of new tokens will be held. When creating Terra 2.0, the old blockchain will be called Terra Classic (LUNC), and the ticker luna will go to the new token.
The initial number of free LUNA tokens will be increased from 15% to 30%. Among the holders of LUNC “before the attack” will be distributed 35%, and the owners of the asset “after the attack” will receive 10% of the issue of tokens. UST owners “before” and “after the attack” will receive 10% and 15% of the new tokens, respectively.
The share of LUNA distribution among TerraUST holders who put their assets on Anchor (aUST) during the ecosystem collapse will be reduced from 20% to 15%. Initially, 30% of the funds will be unlocked at launch, the remaining 70% will be distributed within two years.
The Terra blockchain will burn 1.3 billion UST stablecoins, which is about 11% of the number of coins in circulation. UST from the community pool will be eliminated, as well as coins previously deployed on the Ethereum network to stimulate liquidity. The decision was made during a vote on proposal 1747, which was supported by more than 99% of the community members.
Insider trading on the largest crypto exchanges
Journalists of The Wall Street Journal reported on cases of insider trading on leading global platforms – Binance, FTX and Coinbase. They came to such conclusions after studying the report of the analytical company Argus, dedicated to the anomalous behavior of various crypto wallets. We are talking about the purchase of tokens a few days before the official announcement of the listing on the exchanges.
So, in August, one crypto wallet for six days bought Gnosis tokens worth $ 360,000. On the seventh day, the Binance exchange announced the listing of the asset. The price of Gnosis rose from $300 to $410 within an hour of publication, and an unknown investor was able to sell his tokens for $500,000, the profitability of the transaction was 40%.
On the Coinbase platform, a similar situation occurred. 46 crypto wallets participated in the purchase of Gnosis tokens totaling $ 17.3 million before listing on the exchange. The total profit of the owners amounted to more than 1.7 million dollars.
Forecasts for the bitcoin rate
The founder of the Delta Blockchain Fund, Kavita Gupta, said that the fall in the rates of major cryptocurrencies will continue over the next year and a half, and the price of bitcoin during this period may drop to $ 14,000. Also, according to Gupta, the correction will provide a chance for wider adoption of bitcoin, which will serve as an incentive to reach new price heights. The more companies that include an asset on their balance sheets, the greater the chances of new highs.
Cryptanalyst Michael van de Poppe suggested that there could soon be a rebound in the price of bitcoin above $ 30,000. In his opinion, to provoke an increase in the value of the first cryptocurrency can slow down consumer price inflation or reduce the number of applications for unemployment benefits. Van de Poppe explained that compliance with one of these conditions could prompt the US Federal Reserve (FRS) to relax monetary policy measures.
Analysts of the financial holding JPMorgan said that the fair price of bitcoin is at the level of $ 38,000, and noted the potential for further growth in the value of the asset and the cryptocurrency market as a whole. Experts stressed that the price correction that occurred is similar to capitulation, and the crypto market suffered more than such alternative markets for investment as real estate. Analysts believe that in this situation there is growth potential for both bitcoin and the entire market.
Crypto analyst and trader Kevin Swanshe stated that the price of bitcoin is ready for a rebound along with the US stock market. According to him, recently the asset has shown almost a 90% correlation with the S&P 500 index. The analyst said the S&P 500 is reaching “extremely oversold levels” on the weekly Relative Strength Index (RSI), a metric that measures trend strength. Swanson notes that the index has not reached such a low point since the market crash in early 2020 caused by COVID-19.
The head of the analytical company CryptoQuant Ki Yang Ju said that in the worst scenario, the bitcoin rate will fall to $ 14,000. The analyst came to such conclusions after studying historical metrics. According to Ki Yang Joo, the fall in the price of BTC may occur due to the macroeconomic crisis. At the same time, he added that the bearish trend will bring guaranteed profits to investors.
Guggenheim Partners allowed the price of bitcoin to fall to $ 8,000 This may happen due to higher interest rates and tightening of the Fed’s monetary policy, says the company’s investment director Scott Minerd.
Crypto Market Regulation in Russia
A new version of the law “On Mining in the Russian Federation” was registered in the State Duma of the Russian Federation. The previous version of the document was withdrawn, and a number of provisions on the register and tax amnesty for mining participants were also excluded from it. The decision was made due to the fact that these initiatives could entail additional costs for the federal budget, according to the recall of the legal department of the State Duma on the first version of the bill. Earlier it was assumed that the register will include individuals engaged in the production of cryptocurrencies, as well as mining operators. Otherwise, the new version of the bill repeats the previous one.
The Bank of Russia postponed the start of the pilot version of the digital ruble project on real operations and clients from 2024 to April 2023. The decision was made in connection with anti-Russian sanctions. First Deputy Chairman of the Bank Olga Skorobogatova said that smart contracts will be added to the pilot version of the digital ruble. Earlier, she also noted that transfers in the national digital currency will be free for Russian citizens and are available in all regions.
For the first time, a Russian court recognized cryptocurrency as a means of payment. In 2018, the victim G.A. Shemet transferred to the attackers 5 million rubles in cash and cryptocurrency in the amount of 55 million rubles. Then the court took into account only 5 million rubles and noted that cryptocurrency “is not a means of payment on the territory of the Russian Federation, so it cannot be recognized as an object of civil rights and the subject of a crime.” At the stage of subsequent appeal, the Third Court of Cassation stated that cryptocurrency is still a means of payment. The final verdict included 55 million rubles in cryptocurrency.
The IMF called unsecured stablecoins a financial pyramid. This statement was made by the head of the organization Kristalina Georgieva in connection with the collapse of the Terra blockchain ecosystem. She explained that a stablecoin can be called stable if it is backed by assets in a ratio of 1: 1. And if “the coin is not backed by an asset, but promises an annual income of 20% – this is a pyramid.” Georgieva noted that such schemes collapse over time.
Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler expressed the opinion that the “unrest” in the digital asset market will not stop after the collapse of the LUNA token and the UST stablecoin. He believes that many more coins will “fail,” which will hurt even more investors.
Tether CTO Paolo Ardoino called the UST stablecoin a “poorly constructed house of cards” that was set to collapse at any moment. At the same time, he does not see the consequences of direct fraud in the collapse of the Terra ecosystem. Ardoino noted that the rapid growth of UST capitalization has led to the fact that the stablecoin has lost its peg to the US dollar. He explained that there were not enough reserves to maintain the peg, but they were enough for a further collapse of the market.
The UK Financial Conduct Authority (FCA) intends to take into account the situation with the collapse of Terra when creating crypto regulation rules together with the Treasury.
Circle, the issuer of the USDC stablecoin, has urged the Fed to abandon the issuance of the central bank’s digital currency (CBDC). In its letter to the regulator, the company argues that the digital dollar will adversely affect the private sector of stablecoins. Circle believes that its USDC stablecoin already provides “many of the potential benefits” of the future cryptocurrency of the US government.
Circle has also started publishing weekly reports on USDC reserves. The initiative is aimed at increasing confidence in the stablecoin from investors amid the collapse of the UST rate and problems with the pegging of other stablecoins to the US dollar.
Briefly about the important
Coinbase started the blockaccounts of Russians. In letters to users, the platform refers to the requirements of the US Financial Crimes Enforcement Agency (FinCEN).
Large holders of bitcoin for the month increased assets by 25%. In addition, over the past two weeks, there has been a massive withdrawal of funds from exchanges to depository accounts.
MetaMask will add coinbase Pay service to its platform. Customers of the crypto exchange will be able to buy digital assets using debit cards and bank accounts specified in the account.
PayPal announced the integration of blockchain and all types of cryptocurrencies into its system. In particular, the company intends to work with digital currencies of central banks.
The largest deal in history is planned in the metaverse market. Financial publishing company Curzio Research has entered into an agreement to purchase virtual real estate in the TCG World metaverse for $ 5 million.
eBay will release an NFT-collection with famous athletes. It features animated and 3D interpretations of photos from Sports Illustrated covers.
Manchester City FC will release its own NFT with images of players. The football club has entered into a partnership agreement with the Quidd marketplace.
Fashion house Balenciaga has started accepting crypto payments in the US. Bitcoin and Ethereum are available for payment, the company has not yet decided with which payment solution provider an agreement will be concluded.
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