Bitcoin is still trading at $30,000 as Asia begins its trading day, while ether is unchanged. According to Coinglass data, there were $7 million worth of long liquidations within the previous twelve hours compared to $6.73 million worth of short liquidations.
Ether Chen, the lead financial engineer at Bybit, wrote in a message to CoinDesk that “the stock market is on standby mode, anticipating signals of a rise in prices assuming a decrease or slowdown in increases in rates in the second quarter of the year, and is usually associated with liquidity inflow.” Bybit’s staff, according to Chen, anticipates a possible market price increase in the fourth the previous one, but a full bullish market might not occur until 2024.
Is the market on standby?
Rate increases would have to stop, BTC would have to be cut in half, and legislative storms would have to blow over before the economy could recover.
Tim Frost, CEO of the digital wealth management platform Yield App, calls the Federal Reserve’s recent announcement that interest rates will rise despite decreasing inflation data a “mixed message” and scorns a recent forecast from Standard Chartered that predicted bitcoin would reach $120,000 by the end the current year.
Bitcoin appears to be holding steady around $30,000 at the present, up about 100% from January, when the year began at $16,540, he wrote in a message. Few securities do so effectively in a “bear” the marketplace, and savvy seasoned traders are likely to have profited this year on Bitcoin. Irrespective of whether Standard Chartered’s price forecast is accurate, Frost anticipates a bull market in 2024.
“This change in the trend of the market will also be followed by a long period of stabilization. In the way for the next era of any crypto adoption,” the author writes in his conclusion.
A stablecoin that is pegged to the Chinese Yuan (CNY) is preferable to a Central Bank Digital Currency (CBDC), according to Circle CEO Jeremy Allaire. However, neither a yuan stablecoin nor a Chinese CBDC will pose a threat to the dollar. Why? Because Beijing’s monetary strategy is fundamentally opposed by the yuan’s unfettered convertibility.
The foreign exchange value of the yuan is subject to stringent regulation by the People’s Bank of China (PBoC), which restricts it to a small range and prevents it from floating freely on international markets. China is able to achieve this while still maintaining control over both its internal economy and export prices. However, it also means that unlike the Euro or the USD, the yuan cannot be used abroad, and there are stringent limits on the amount that may be exported. The more control you are ready to give up, the more your money will be accepted internationally.
These aren’t the qualities of a world currency, as Gita Gopinath, the IMF’s first deputy director for management, said in a 2022 speech. After all, as of January 2022, just about 3.2% of worldwide payments were made using the yuan. Gopinath is reported as saying, “If a nation wishes to be an international currency, then it must have that case, you understand, fundamentally fully and openly mobile capital, full financial account liberalization, and full currency conversion of the exchange rate, which wouldn’t be the case at the moment in China.
Relationships between the United States and China have been strained by the topic of currency manipulation; in 2019, the U.S. Department for the Treasury designated China as a currency manipulator. This is how the market is on the standby. Read the latest cryptocurreny news on Coinography.
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