Crypto Market Overview July 13th | Dex-Trade
BTC Ahead of US Inflation Data Announcement
The announcement of record inflation data in the US, announced for three months, will finally take place in just a few hours, and the international crypto community held its breath in anticipation of figures that could significantly change the rules of the game in the digital asset market. Many experts are sure that it’s the increase in interest rates from the US Federal Reserve, which will take place as an anti-crisis measure, that is one of the main reasons for the “crypto winter” in general and the fall in the value of Bitcoin in particular. But the key will not even be the very fact of raising rates, but the quantitative side of the question: how exactly will they rise? Summarizing the rhetoric of the Fed representatives, a number of crypto-analysts and investors came to the conclusion that if the inflation rate is 8.8% or higher, the Federal Reserve will further tighten monetary policy, which relates directly to crypto margin trading. On the other hand, if inflation is below 8.5%, the value of the dollar will fall, but the cryptocurrency market may, on the contrary, rise by 5%. To date, the total market capitalization of the crypto is $882.4 billion, which is almost $2.1 trillion below its record value, which was recorded on November 10, 2021. At the same time, technical analyst and co-founder of Fairlead Strategies, Cathy Stockton, said earlier in the week that there is an increase in bearish momentum in the long term. Therefore, it is definitely not worth expecting anything frankly good from today's news from the USA.
The ECB Started Talking About a Ban on Bitcoin Due to the Climate Crisis
On July 12, the European Central Bank (ECB) published an article comparing the energy-intensive Proof-of-Work algorithm powered by Bitcoin with fossil fuel-powered cars, and the Proof-of-Stake algorithm, which consumes about 99% less energy, with electric vehicles. Such rhetoric from the European authorities hints that the ECB is bearish on Bitcoin: “Public authorities have the choice of incentivising the crypto version of the electric vehicle (Proof-of-Stake and its various blockchain consensus mechanisms) or to restrict or ban the crypto version of the fossil fuel car (Proof-of-Work blockchain consensus mechanisms).” — says in the article. The article also contains previous data on the operation of the Proof-of-Work protocol, according to which Bitcoin and Ethereum consume energy in a year equivalent to the consumption of countries such as Spain, the Netherlands or Austria. In addition, the ECB claims that the current carbon footprint of BTC and ETH as of May 2022 negates any targeted reduction in greenhouse gas emissions for most euro area countries. As such, the article is open about the fact that, due to the existing European Union carbon reduction targets, it is “highly unlikely” that EU authorities will adopt a hands-off approach to regulating crypto assets on a Proof-of-Work protocol.
Blatant Crypto Ad Trolling with Matt Damon, Gwyneth Paltrow and Larry David from the Creators of South Park
Just a few months before the cryptocurrency market began to collapse on a massive scale and the crash of some tokens left hundreds of thousands of investors at a loss, several Hollywood stars had the imprudence to light up in poorly directed commercials for crypto companies, where there was not a single mention of the risks that linked digital assets. Of course, this could not pass by the creators of the legendary "South Park," in the latest episode of which the creators troll Matt Damon, Gwyneth Paltrow, Larry David, Naomi Osaka and Reese Witherspoon. According to the plot of the episode, Matt Damon advertises a "promising" product called Pee Pee Water, which he proposes to use for almost everything — from watering lawns and bathing to preparing food and drinks. And while drinking the same Pee Pee Water in the video, Damon's character pronounces the phrase "fortune favors the brave," which is the slogan of an advertising campaign with his participation from the American crypto exchange Crypto.com. Then other celebrities begin to promote the new "daring" product in their audiences. And here I want to say only one thing: “thank to the universe for South Park!”
