Crypto Market Overview May 16th | Dex-Trade
Unprecedented 7th Week of Red BTC
Clouds continue to gather over the crypto market, as evidenced by a new anti-record of crypto-gold: the coin closed the 7th trading week in a row in the red, which has never happened before in the entire history of cryptocurrencies. At the same time, the Bitcoin Fear and Greed index continues to remain in the zone of extreme fear — a bit above 10. Recall that the metric takes into account complex data, including polls, volatility, comments on social networks, etc., resulting in the general attitude of the community towards BTC on a scale of extreme fear (score 0) to extreme greed (score 100). And this is not surprising, since May 12 was one of the worst trading days in recent years: the price of BTC fell from just over $30,000 to $26,300, the lowest level since July 2019. This event was followed by a fairly quick rebound to $28,000, but the overall price dynamics of Bitcoin remained negative. However, it’s important to remember that Bitcoin tends to react fairly quickly to market events leading to extreme fear in the market. Recall at least the COVID-19 pandemic, when the index fell to 8 and BTC lost more than 50% of its value during the day. However, a few months later, crypto-gold recovered its losses and even managed to accumulate investor confidence so much that a new ATH was reached by November 2021.
Vitalik Buterin Called for Compensation to "Average Small Holders" of UST
Ethereum co-founder Vitalik Buterin commented on Twitter about the catastrophic collapse of the UST stablecoin, recommending that the Terra project give priority in recovering initial deposits (not profitability) to small “average” hodlers, that is, 99.6% of all coin holders. According to Buterin, this would contribute to the growth of the project's credibility and avoid reputational losses of its founders. Moreover, the Terra community is now actively looking for ways to restore the ecosystem of coins, so the issue of “surrender” is not yet considered. The businessman even advised to consider the possibility of cooperation with the Federal Deposit Insurance Corporation (FDIC), which provides government-backed bank deposits. By the way, against the background of the collapse of UST, the UK Treasury signed a declaration on the regulation of payments in stablecoins. The declaration will form part of the Financial Services and Markets Bill, which was mentioned in the Queen's recent speech. The future law considers the parliamentary agenda in the country for the coming years, within which two laws on crypto will be adopted. Similar rhetoric appeared in the US government, where they again called for the immediate regulation of stablecoins. However, Treasury Secretary Jennette Yellen believes that stability coins do not really pose a threat to the US financial system.
Government of El Salvador to Discuss BTC Adoption with Representatives of 44 Countries
Salvadoran President Naib Bukele invited delegates from 44 countries in South America, Africa and South Asia, including 32 representatives of central banks and 12 representatives of financial authorities, to discuss the payment accessibility and adoption of Bitcoin, as well as the potential digitization of the economy. It’s noteworthy that this event can be called a "forum of interests", since its participants represent developing countries with frontier markets, whose economies are growing very erratically. By the way, it’s these types of countries that are currently leading in the adoption of cryptocurrency. This trend is partly explained by the fact that BTC does not help much in the fight against inflation in developed Western economies. But in emerging markets that are facing much higher inflation rates, crypto can be seen to represent a much higher value. For example, in Turkey and Argentina, where inflation can rise to a staggering 50%, there has been a corresponding increase in the adoption of cryptocurrencies.