The Great Crypto Crash, The news of FTX’s collapse is sending shockwaves through the crypto community, many people put their faith in FTX and now they are left with nothing.
This will definitely have a ripple effect on the market and we will see more exchanges go bankrupt in the coming months. Investors who have put their money into cryptocurrencies are now facing huge losses. Some people are even calling for a complete ban on all trading activity. The question now is, what do we do? Do we give up on crypto entirely? Or do we find another exchange to trade on? Most traders are not ready to give up on crypto just yet. There are still too many good things about it. We believe that this market will rebound eventually and those who stick it out will be rewarded handsomely. In the meantime, it remains to be seen how this situation will play out, but one thing is clear: The crypto world is in for a bumpy ride.
“If I had an extra $40,000, that would make finding an apartment in San Francisco a lot easier right now,” said crypto investor Kimberly. She was on the hunt for a new apartment since her landlord was selling the condo she was leasing. Losing roughly $40,000 this year out of the $50,000 she put into her cryptocurrency investment made it difficult to find something affordable in San Francisco’s current market. “I’ve been looking at apartments for weeks and the prices are just outrageous,” Kimberly said. “With rent prices rising and my investment portfolio taking a hit, I’m struggling to find anything that’s within my budget.” But if she had an extra $40,000? “I would definitely be able to find something more easily,” Kimberly said confidently. “It would help me feel a lot less stressed about my housing situation.”
The Perfect Storm: The Fourth Crypto Crash
The recent collapse of FTX, the second-biggest cryptocurrency exchange, has dealt a major blow to the industry. Prices for bitcoin and ether have been pushed down further, hurting investors and the industry as a whole. Cryptocurrency experts say that this is just the beginning of a long downward spiral for the industry. They believe that many more exchanges will fail in the coming months, taking prices even lower. This is bad news for traders and investors alike. Many people have lost a lot of money in this latest crash, and it doesn’t seem like things are going to get better anytime soon.
2022 is shaping up to be a tough year for cryptocurrency. Professor Banafa, a tech expert and crypto professor at San Jose State, has said that the industry is set to lose 2/3 of its market value by the end of the year. This fourth crypto crash in 12 years will further damage the industry’s credibility, he says.
Too much money and no oversight are creating a perfect storm for bad decision-making in crypto land. Already, we’re seeing reports of exchanges like FTX being unable to process withdrawals. For investors like Evan Luthra, this means real pain as they try to get their money out of failing projects.
The company has raised over $1 billion from investors including Temasek, Tiger Global, and Blockfolio.
FTX was one of the fastest-growing exchanges in the industry with a wide range of products and services for both retail and institutional investors.
FTX, a cryptocurrency derivatives exchange, has seen tremendous growth in the past year.
In January of this year, FTX’s U.S. arm was valued at $8 billion after raising $400 million in its first funding round from investors including SoftBank and Temasek.
Just four months later, FTX had raised an additional $400 million from investors including SoftBank at a valuation of $32 billion.
This exponential growth is due in large part to FTX’s innovative products and services.
For example, FTX offers tokenized versions of popular assets such as stocks and commodities which allows traders to gain exposure to these markets without actually owning the underlying asset.
This has made FTX one of the most popular exchanges among traders looking for alternative investment opportunities.
The Story
It’s been a tough 24 hours for Sam Bankman-Fried and his crypto empire.
However, not everything has been smooth sailing for FTX.
In August 2019, the U.S. bank regulator ordered FTX to halt “false and misleading”
claims it had made about whether funds at the company are insured by the government.
Then in September 2020, FTX’s venture capital fund said it would buy a 30% stake in SkyBridge Capital
(a move that was later criticized by some).
Most recently, on November 2nd 2020, crypto news website CoinDesk reported a leaked balance sheet that showed Alameda Research (Bankman-Fried’s crypto trading firm) was heavily dependent on FTT (FTX’s native token).
Yesterday, Binance announced that it had reached a non-binding deal to acquire FTX’s non-U.S. businesses for an undisclosed amount.
This came as a surprise to many in the industry,
as FTX has been embroiled in a liquidity crisis in recent months.
However, it appears that Binance has had a change of heart and is now backing out of the deal,
tweeted today “But the issues are beyond our control or ability to help.”
And in another statement, the company said: “After further consideration,
we have decided not to proceed with the acquisition of FTX.
We will continue to support the growth of the crypto ecosystem and look forward to working with other projects in this space.
The Drop
With customers demanded withdrawals to the tune of $6 billion
and the exchange’s CEO, Sam Bankman-Fried, deleted tweets from the prior day
indicating that FTX had enough assets to cover clients’ holdings.
This event has sent shockwaves throughout the industry and has called into question the stability of crypto exchanges. Binance CEO Changpeng Zhao issued a memo to employees on Wednesday saying that he “did not master plan” the collapse of FTX and that it is not good for anyone in the industry.
Source TradingView TM
This event is a reminder of how volatile and risky cryptocurrencies can be.
For investors and traders looking to enter this market,
it is important to do your due diligence and only invest what you are willing to lose.
First, OKEx suspended withdrawals amid rumours of founder arrest,
then KuCoin suffered a major hack, and now FTX has collapsed following mass client withdrawal requests.
FTT was trading at around $3.50 on November 8th when the exchange suddenly announced that it would suspend all withdrawals indefinitely. This led to a massive sell-off as clients rushed to exit their positions before the price dropped.
By the end of the day, FTT had lost 72% of its value and was trading at just $0.98.
Binance had initially offered to bail out FTX by purchasing $100 million worth of its tokens,
but after due diligence, they decided against it and pulled out of negotiations.
This left FTX with no choice but to liquidate all its assets in order to meet client withdrawal requests.
As a result, FTT is now worthless and many investors have been left holding useless tokens.
The Georgia property developer who stole approximately 50,000 Bitcoin from the cybercrime dark web site pled guilty to wire fraud on Friday.
Zhong, a former bitcoin trader and investor, has agreed to plead guilty to federal charges related to his involvement in a scheme to launder money through the purchase of luxury cars.
In 2013, a Chinese national named Zhong Yihao stole millions of dollars worth of Bitcoin from the Silk Road marketplace.
Here’s how he did it.
Zhong discovered that he could trigger Silk Road’s payment processing system into paying out excess amounts by creating an account and then making withdrawals within the same second.
That way, a deposit of 500 Bitcoin could result in a 2500 Bitcoin haul,
over the course of a few days, Zhong created about nine user accounts and made 140 transactions. U.S
Fall of the theft
James Zhong, of Gainesville, Georgia, pleaded guilty on Nov. 4 to one count of wire fraud and faces a maximum sentence of 20 years in prison.
The FBI arrested Zhong in 2013 after he logged onto the Silk Road illegal market emporium from his laptop as the system administrator using his assumed name of Dread Pirate Roberts.
Since founding the website in 2011, Zhong paid approximately $650,000 in murder-for-hire schemes;
however, none of the five intended victims actually died as a result.
This is a huge victory not just for those who were directly affected by this crime,
but also for all traders and investors who have been keeping an eye on this case.
For too long, Silk Road has been a haven for criminal activity, and it’s gratifying to see that its operators are finally being held accountable.
We can only hope that this will deter other would-be criminals from using cryptocurrencies to facilitate their illegal activities in future.
How Far would the Law go
The recent court filings against James Zhong “Jimmy”. As many of you know, Mr Zhong is accused of stealing approximately $577,000 worth of cryptocurrency from Silk Road users by exploiting a flaw in the wallet software. While this may seem like a large sum of money, it’s important to remember that Bitcoin values fluctuate rapidly and this amount could have been much higher or lower at the time of the theft.
Interestingly, Mr Zhong went to great lengths to hide his ill-gotten gains, storing them on devices in an underground floor safe and even inside a popcorn tin in a bathroom closet! This just goes to show that no matter how creative a person can be with hiding places, eventually, the law will catch up.
Under the terms of his plea agreement, Zhong could face 27 to 33 months in prison under recommended federal guidelines at his Feb. 22, 2023 sentencing before U.S. District Judge Paul Gardephe, though prosecutors can seek a longer sentence.
The defendant also agreed to forfeit his stake in a real estate company, plus $661,900
His lawyer Michael Bachner said Zhong has returned “virtually” all of the bitcoin.
“Mr Zhong is extremely remorseful for his conduct that occurred over 10 years ago when he was just 22,” Bachner said in a statement.
MasterCard Support of Cryptocurrencies, It seems that cryptocurrencies have begun to enter a new curve towards the development and self-proof and penetration into a brighter market,
as MasterCard has begun to provide a new service that allows the purchase
and sale of digital assets for customers who want to work in digital currency trading and keep them.
Since the beginning of the existence of cryptocurrencies in the markets,
there have been several banks that supported their presence and retention,
and the vast majority were moving away from keeping encrypted currencies and
providing that service to their customers for fear that this system would not succeed
and get involved with customers and build a new organizational and
employment structure in Managing banks to deal with cryptocurrencies may continue and succeed or fail.
Thinking and demagogy still dominate most of the banks in the world,
but not yet with the presence of many bank partners that will support the
new MasterCard’s service for cryptocurrencies, which has been called CryptoSource.
As this service is scheduled to start experimentally at the beginning of next year in Brazil,
America, and Israel, despite reservations about the names of the banks
participating in this protocol by Ajay Bhalla Internet Artificial Intelligence in MasterCard,
who has confirmed the beginning of next year as the beginning of the launch of this service?
Despite the trouble faced by cryptocurrencies during the recent period and the number of declines,
collapses and bankruptcies that cryptocurrencies are exposed to, which exceeded a trillion dollars,
MasterCard’s hope still prevails in this sector, as it represents a large part of the features of the financial future in the new world.
Nasdaq, its partner, the global stock exchange, is also one of the supporters of this idea,
as it stated that it will start providing digital asset custody services to its customers.
The bright future outlook for this sector has not been shaken mostly due to the setback
that the sector is going through at this time, especially with the current difficult times for many sectors due to crises. Globalism.
The Impact of Cryptocurrencies
In order to keep pace with the current developments in the financial world, MasterCard will precede a lot,
as it was mentioned that the purchase of encrypted assets is something that consumers need greatly.
It is one of the specialists in this field,
and the company has specified that it will pay about five hundred employees and more specialists in the world of cryptocurrency in issuing the crypto source system,
which will work through the digital assets company Paxos Trust,
which will act on behalf of the banks by providing trading services for currencies and maintaining them as assets of the order who will bend the responsibility of maintaining assets for currencies in the balance sheets of banks,
this step may raise the saliva of many banks to enter this sector sooner or later.
Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), the two most valuable cryptocurrencies in the world,
are both on the rise this morning.
Bitcoin is currently trading above $19,300 while Ethereum has moved above $1,300.
These gains come as institutional investors continue to show interest in cryptocurrencies.
Last week, hedge fund manager Paul Tudor Jones revealed that he has been buying Bitcoin as a way to hedge against inflation.
Jones is just one of many high-profile investors who have become interested in cryptocurrencies in recent months.
The growing interest from institutional investors is helping to drive up demand for both Bitcoin and Ethereum.
With prices moving higher, it seems that there is no stopping these two digital assets at the moment.”
Bitcoin and Ethereum have been on a tear lately, with both cryptocurrencies hitting highs.
Ethereum has surged past $1300 and is now trading at $1340.
This is a major breakthrough for the second-largest cryptocurrency as it continues to close the gap with Bitcoin.
Traders are now eyeing further gains as Ethereum looks poised to continue its uptrend.
The next level of resistance is around $1,800, which could be tested in the coming days if buyers remain in control.
On the downside, support levels are at $1,700 and $1,600 respectively.”
Ethereum and the Metaverse
Joe Lubin, the co-founder of Ethereum and CEO of ConsenSys,
believes that the current state of the metaverse is comparable to the internet circa 1994.
While there are still many technical challenges to overcome,
he is confident that augmented and virtual experiences will eventually become a part of daily life for most people.
After being introduced to Ethereum by Vitalik Buterin.
He was immediately impressed by the potential applications of smart contracts and decided to join the project as a co-founder.
Since then, he has been a driving force behind ConsenSys.
While acknowledging that there are still many challenges facing developers who want to build metaverse applications, Lubin remains optimistic about the future.
He believes that augmented reality (AR) and virtual reality (VR) will eventually become ubiquitous, changing how we interact with each other and our surroundings on a fundamental level.
When it comes to the virtual world, we’ve still got a long way to go, this was the sentiment expressed by ConsenSys CEO Joseph Lubin during a recent interview with CNBC. Lubin’s comments come at a time when some of the biggest companies in the world are taking an unprecedented interest in the metaverse – otherwise known as virtual reality (VR). Facebook, for example, has fully reoriented its efforts towards dominating VR; while Apple and Disney are quietly exploring the space. Even traditional brick-and-mortar brands like Walmart are diving in head-first.
Despite all this activity from mega-corporations and web3-native companies alike, however, VR still has yet to catch on as the accessible, entertaining, and smooth-functioning virtual haven it was initially promised to be. In order for that to happen, Lubin believes we need better technology – specifically around user experience (UX) design – and more investment from both public and private sources.
Weekend gain
The cryptocurrency markets gained over the weekend, with global market capitalization pushing one % higher to US$929.7bn. Ethereum outpaced Bitcoin and has fared particularly well in the past 24 hours with a 2.1% jump to US$1,337, although it has been drawing back in Monday’s early trading hours.
Bitcoin’s price was last seen at $11,162 on the Bitstamp exchange after climbing as high as $11350 earlier in the day – its highest level since September 1st. On Saturday morning (UTC), bitcoin had already surged 5% following news that Chinese President Xi Jinping had endorsed blockchain technology during a speech at a Communist Party meeting. The move sent shockwaves through crypto Twitter and other online communities dedicated to digital assets.
The total cryptocurrency market capitalization stands at around $929 billion at press time – up from just under $920 billion yesterday.
Mastercard’s Big Crypto Move, the deal, which is set to be announced later today,
will see Mastercard act as a middleman between the banks and the crypto platform Paxos.
It’s expected to drive the adoption of crypto to investors who aren’t ready to jump ship to startups like Coinbase and Crypto.com.
This move by Mastercard comes hot on the heels of Google’s announcement that it would be partnering with
Coinbase offers crypto trading through its Google Pay app.
This latest partnership is yet another sign that mainstream financial institutions are starting to take cryptocurrencies seriously.
While details of the deal are still being finalized, it is thought that Paxos will be responsible for custody and trade execution,
while Mastercard will provide its network infrastructure and processing power.
This could potentially make it easier for small-to-medium-sized banks that don’t have their in-house cryptocurrency expertise or resources,
to offer digital asset trading services without having to build everything from scratch themselves.
Paxos has been a pioneer in the cryptocurrency space,
being founded in 2012 and becoming the first bitcoin exchange to be licensed by the
New York State Department of Financial Services.
Through its expansion with Mastercard,
Paxos will continue to provide innovative solutions that make it easy for consumers and businesses to use cryptocurrencies.
New Crypto Trading
The adoption of cryptocurrencies has been slow due to a lack of understanding
and trust from both investors and banks.
Mastercard is looking to change that with its new Crypto Source program.
This program will help banks with crypto analytics, transaction monitoring,
anti-money laundering, compliance, cybersecurity, and biometrics.
In addition, it will also include crypto spending and cash-out capabilities through products
like crypto cards, open banking and cross-border services.
This is a much-needed step in the right direction for the cryptocurrency sector.
With the backing of a major financial institution like Mastercard,
we could see mass adoption of digital currencies shortly.
The company is expanding its partnership with the crypto trading platform Paxos Trust.
With this expansion, banks will be able to offer their customers cryptocurrency
trading and custody services through the Mastercard network.
This will allow consumers to seamlessly trade cryptocurrencies through their bank’s interface.
Jorn Lambert, the chief digital officer at Mastercard,
discusses the payment processor’s pilot program to let banks offer crypto trading.
The program is designed to help banks meet customer demand for crypto services
and provide a way for them to participate in the growing market.
Lambert says, that Mastercard is committed to helping its customers navigate the evolving world of payments
and that this pilot program is one way it can do that.
He also notes that cryptocurrencies are still a relatively new phenomenon
and that Mastercard is constantly monitoring developments in the space
to ensure it can provide safe and secure services to its customers.
The benefits
Last year was a big one for a cryptocurrency (BTC / ETH) where
Mastercard made it easier for banks to offer rewards in the form of cryptocurrency,
and also began allowing startups focused on digital assets to join its Start Path program.
This gave these fledgling companies access to the network’s executives and technology, which helped them grow.
The purchase of Bakkt also showed that Mastercard is serious about making cryptocurrency a mainstream payment option.
2020 is shaping up to be an even bigger year for crypto, and Mastercard is leading the charge.
The announcement of a deal between Mastercard and several banks is big news for the crypto world.
For too long, cryptocurrencies have been the preserve of early adopters and tech-savvy investors.
But with major financial institutions now getting involved, that is all set to change.
This deal will allow banks to offer crypto trading services to their customers who might not otherwise consider investing in digital currencies.
Customers trust these banks and would be more likely to invest their money with them,
knowing that they won’t be scammed. Of course,
there is no escaping the volatility of investing in cryptocurrencies.
Prices fluctuate wildly, as we have seen over the past year.
However, this should not deter people from considering investing in digital currencies.
After all, what goes down must eventually come up – and when it does,
those who have invested early could stand to make a lot of money.”
Coinbase Singaporean Crypto License, the Monetary Authority of Singapore has given
“in-principal authorization” to the Singapore-based branch of the
US cryptocurrency exchange Coinbase to conduct crypto services in Singapore (MAS).
Hassan Ahmed, CEO of Coinbase Singapore and the exchange’s regional
director for Southeast Asia stated that Singapore is a significant institutional market for the exchange in
Asia since firms in the region continues to demonstrate an interest in and develop exposure to cryptocurrency.
This is good news for Coinbase and the cryptocurrency sector as a whole,
as MAS has been famously tight-lipped on digital assets.
Last year, the MAS warned investors that they might lose all of their money if they invest in cryptocurrencies.
So, getting “in-principal approval” from them is quite a big deal, this implies that Singapore’s institutional
investors will now have access to one of the most user-friendly platforms for buying and selling cryptocurrency.
This will undoubtedly enhance demand for digital assets such as Bitcoin and Ethereum in Singapore, and prices may climb as a result.
The city-state is one of the leading financial centres in Asia and has been at the forefront of adopting innovative technologies.
Coinbase’s expansion into Singapore will allow it to better serve its clients in the region
and expand its product offerings, according to Ahmed, the city-state also functions as
Coinbase’s Asia-Pacific tech centre, with an on-the-ground team of engineers
in charge of the company’s international expansion efforts and platform localization,
Coinbase was already offering services, including its institutional platform, under an exemption given by MAS.
Coinbase obtains Europe
It’s been a tough year for cryptocurrency investors. With key tokens like bitcoin and ether in the red,
the market has lost almost $2 trillion in value.
Contagion from the failure of big projects and corporate bankruptcies has spread throughout the sector,
leading to mass layoffs across many companies, despite this difficult environment,
Coinbase has managed to obtain a regulatory license that will allow it to operate in Europe.
This is a significant achievement given the current climate, and it underscores
Coinbase’s commitment to expanding its business despite challenging conditions.
The European market presents a huge opportunity for Coinbase,
and obtaining this license is an important first step in tapping into that potential.
With careful planning and execution, Coinbase can continue to grow its business
even during these tough times for the cryptocurrency industry, Coinbase, one of the
world’s most popular cryptocurrency exchanges, has been granted a license to operate in Singapore.
The Impact of Coinbase’s Expansion
Ahmed stated that with its new authority to provide Digital Payment Token services,
it will want to work with local platforms and increase its fiat capabilities,
the exchange claims to be working with local Web3 community organizations such as the
Association of Crypto-Currency Enterprises and Start-ups in Singapore
(ACCESS) and the Singapore Fintech Association on an ongoing basis (SFA).
Ahmed claims it is collaborating with the Singaporean sector to secure fair
legislation from regulators and to send information to Advisory. sg,
a youth-focused NGO, Coinbase has seen an interest in expanding through the Asia-Pacific region,
with a local entity in Japan since August 2021 and an Oct. 5 expansion of its retail-focused services in Australia.
This is part of Coinbase’s larger strategy to expand its presence in the Asia-Pacific region,
which began with the launch of local exchange in Japan earlier this year.
The latest expansion into Australia is just another step forward for
Coinbase as it looks to solidify its position as a leading digital currency exchange platform globally.
Coinbase’s Plans to Enter New Markets
Coinbase’s vice president of international and business development Nana Murugesan
spoke about the company’s plans to enter new markets throughout Southeast Asia.
“We see Southeast Asia as a crypto-forward region with a lot of demand for holding and using crypto,”
she said. “There is also great potential for innovation around Web3 gaming trends like we’re seeing emerge from Vietnam.”
The Philippines and Indonesia are two markets where Coinbase sees strong potential growth for cryptocurrency adoption.
In addition, Vietnam has emerged as an exciting hub for blockchain and gaming innovation –
two areas that hold great promise for future growth on the Coinbase platform.
Crypto Gigantic Move Incoming, on Oct. 4th, Mr. Musk proposed a deal to acquire Twitter for $44 billion,
the price he agreed to pay for the company in April.
An agreement at the original price would be a victory for Twitter shareholders who have seen the stock languish since
Mr. Musk first announced his interest in buying it nearly six months ago, but it is also a sign that
Mr. Musk is serious about using Twitter to promote his businesses and causes —
and that he believes the social media platform can help him achieve his goals, whatever they may be.
For investors in cryptocurrencies, this move could signal that Mr. Musk sees value in digital currencies as well
and could start accepting them as payment for Tesla products or services, in fact, some believe that this might
be one of the reasons why he was so interested in acquiring Twitter in the first place –
so he would have direct access to millions of crypto enthusiasts through tweets.
Europe Finalizes Landmark Crypto Rules
After two years of back-and-forth, policymakers reached an agreement on the legislative package in June.
The regulation will require anyone wishing to issue cryptocurrency to publish a “crypto-asset white paper”
containing information about their project. This means that stable coin issuers will be subject to specific capital
requirements and will be required to hold reserves to back up
the value of their tokens in an amount proportional to the amount issued.
Meanwhile, the legal text will be submitted to the European Parliament for approval before being published
in the Official Journal of the European Union early next year, with the rules set to go into effect in 2024.
The EU has chosen a cautious but pragmatic approach to regulation, balancing investor and consumer
protection while enabling innovation to flourish.
The new restrictions will assist to combat crime and fraud
while still allowing genuine firms to grow.
This is a significant step forward for the Bitcoin business,
which has frequently been plagued by regulatory uncertainty.
With these new laws in place, Europe is sending a clear statement
that it is open to the cryptocurrency industry.
This is wonderful news for investors and traders who wish to engage
in this market with confidence because clear guidelines are in place.
How the U.S. Framework Could Back Crypto
One of the most encouraging aspects of Biden’s assessment is that the White House did not immediately declare
its intention to crack down on cryptocurrency. While they obviously want to get a grasp on any unlawful financial
activities that may occur through crypto, the US president did not indicate he is against crypto in general. Instead,
the White House appears to be warming to digital money. According to the framework,
creating a CBDC or a central bank digital
currency might have “substantial benefits” for the United States.
That would essentially be a digital format for the US currency.
Some cryptocurrency industry insiders have already seen the writing on the wall. They predict the
The United States will eventually develop its own digital currency.
The blueprint does not provide a timeline,
but it does state that the Biden administration will “engage with the business sector, Congress, and other
stakeholders” on the concept of a digital dollar, which includes a framework that was also critical of China’s digital money.
The creation of China’s digital currency
“The creation of China’s digital currency might generate distinct standards for global digital currencies,
lessen the dominance of the US dollar, and empower China with greater control over how its currency is used abroad,
” according to the plan. The plan also stated that the United States should do a better job of regulating crypto assets,
and it called for greater openness and responsibility in the crypto sector.
There is now a lot of ambiguity around how crypto assets are purchased and traded,
and the United States needs to do a
a better job of comprehending crypto assets and their risks.
The United States must do a better job of countering money laundering
and terrorist funding, and it must exert greater
pressure on cryptocurrency exchanges to comply
with anti-money laundering legislation also should think about whether
additional restrictions are required to safeguard investors and consumers from fraud and manipulation.
They need to make sure that persons who invest in crypto assets pay their taxes.
Overall, the Biden administration’s plan is a great step forward for the crypto sector.
It demonstrates that the US is taking cryptocurrency seriously and is prepared to collaborate
with the sector to develop a regulatory framework that works for everyone.
US President Joe Biden signs US anti-inflation bill
To control the climate change crisis and reduce the high cost of medicines in the United States,
US President Joe Biden decided to sign the “Inflation Reduction Act.”
“This law is not only concerned with the current situation but also focuses on the future, ” Joe Biden said during his signing.
The law came to fight inflation including investments worth 369 billion dollars
to support climate and energy policies and 64 billion to reduce health insurance costs.
This law went with the support of Democrats in Congress.
The law also includes setting a minimum tax for companies that
generate more than one billion dollars in annual revenues, for the tax to be 15% The results of the vote indicated a majority of 51 members against 50 votes in the Senate,
with reservations that any member of the Republican Party would vote in favor of the law.
At the same time, the House of Representatives approved
this plan by a majority of 220 votes against 207 votes.
Bank of America: 58% of investors expect a recession in the US economy
In light of the economic crisis,
fears are rising about the fear of an economic recession in the United States,
but at the same time, expectations of price increases are receding.
In a survey by “Bank of America” of investment fund managers, 58% of investors expect that the US economy
will go through an economic recession within the next 12 months,
which is its highest level since May 2020, compared to 47% in the previous poll. The bank’s poll also showed that 88% of investors expect a calm in inflation over the next year,
in light of concerns about an economic downturn.
Investors focused that the greatest risk comes from high inflation,
then global recession, and tightening monetary policy by central banks around the world.
The US Federal Reserve issues signals to banks before they enter the crypto-asset industry.
In the context of regulating work in the cryptocurrency market,
the Federal Reserve decided to issue regulatory guidelines in order to impose them
on lenders under the supervision of the Central Bank before starting the digital currency industry.
The statement also indicated the danger of investing in encrypted assets,
because of the risks and rapid fluctuations related to consumer protection and financial stability
Meanwhile, US regulators are still studying the volatility of the cryptocurrency market
and its negative impact on the broader financial system.
artıcal name “Biden” signs a bill to reduce inflation
Summary of the Reserve Bank of New Zealand’s interest statement for August 2022.
Early this morning, Wednesday, the members of the Reserve Bank of New Zealand met,
for the interest rate and monetary policies and the development of new decisions for them,
in addition to the upcoming vision for the New Zealand economy.
The most important water came in the monetary policy statement issued by the Central Bank of New Zealand:
The Bank decided to raise interest rates by 50 basis points,
to bring the total interest currently at about 3%,
and this came within the framework of the New Zealand Reserve’s
decision to continue tightening monetary policy.
He also praised the flexibility of domestic demand inside his country
and facing internal and external obstacles during the first half of this year 2022.
The New Zealand Reserve also indicated an increase in visitors to New Zealand,
which will support demand and increase the income of the tourism sectors.
The unemployment rate is very low at 3.3%,
and economic data indicates that employment rates have exceeded
their maximum sustainable rate.
As a result of pressures in the labor market,
inflation is increasing, as measured by the consumer price index,
with an increase in wage rates.
He also pointed out that the supply chain crisis in the world
also has an impact on the slowdown in his country’s production.
The bank’s expectations indicate a decline in home and real estate prices to sustainable levels.
The bank also stressed the tightening policy and raising interest rates,
which is a basic measure to return in order to achieve the goal of inflation and employment,
after inflation in New Zealand reached 7.3% in the third quarter of this year.
artıcal name “Biden” signs a bill to reduce inflation
Cryptocurrency market gets a positive boost after Fed decision.
In a step that is considered positive in the framework of regulating access to digital currencies in the United States,
which is one of the largest economies in the world,
by establishing frameworks to regulate banks with regard to dealing in the cryptocurrency market.
After the issuance of these decisions by the US Federal Reserve,
it came very supportive of the cryptocurrency market,
which led to the cohesion of cryptocurrencies,
and the market became more interactive with decisions regarding the future of interest.
Today, markets are awaiting the minutes of the US Federal Reserve meeting,
which will clarify more regarding the next steps regarding interest rates.
The cryptocurrency market remained consolidation for the third day in a row,
near the total capital of 1.15 trillion dollars,
At a time, Bitcoin remained trading near the levels of 24 thousand dollars,
after it was at its lowest level during the day at 23.9 thousand dollars,
and this confirms the positive reaction to the news,
and Ethereum also rose at levels of 1.9 thousand dollars.
In a statement
the Fed said that digital currencies can present “potential opportunities for banks,”
and companies must know the capacity of their systems in order to ensure the safety and protection of consumers from volatile assets.
The agency said that banks should notify the Federal Reserve before they engage
in any cryptocurrency-related activities,
and that banks that already want to engage with crypto
initiatives should inform the Federal Reserve of their participation in the digital asset space.
In light of the regulation, the Federal Reserve requested
that banks have appropriate controls to manage risks before entering into digital
currencies in order to ensure consumer protection,
and this regulatory step was the most comprehensive
after some Democratic senators demanded to rescind its previously issued directives on digital currencies and
replace them with a comprehensive approach.
Coordination with other parties.
Companies must know the extent of their ability to keep digital assets on their balance sheet
and facilitate trading in digital currencies on behalf of customers.
artıcal name “Biden” signs a bill to reduce inflation
