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Cryptocurrencies 03-06-2022: Bitcoin's Downturn

Cryptocurrencies 06-03-2022 witnessed the decline of the most famous cryptocurrency “Bitcoin” to drop at the level of 30 thousand dollars due to pressures of the US dollar and weak risk appetite among investors, that the price of the Ethereum currency and the Cardano currency fell, and this comes after the release of a number of US economic data Which affected the US currency, which led to the decline of cryptocurrencies.

Digital currencies

Cryptocurrency trading

The cryptocurrency bitcoin sessions fell during Friday’s trading by about 3.5% to $29,419, and the opening price was at $30,437.77 and recorded the highest level at $30,670, when Thursday’s sessions closed, it rose by 2.2%

The market capitalization of cryptocurrencies fell by about $35 billion to a total of $1.22 trillion, with the decline in transactions of Bitcoin, Ethereum, and other major currencies.

Ethereum price

The price of Ethereum at 20:30 GMT on the “Coin MarketCap” platform decreased by 3.7% to $ 1757.3, in light of a weak risk appetite.

Cardano trading

Cardano fell 4% to $0.5606, yet the cryptocurrency posted a weekly gain of 22.1%.

El Salvador suspends Bitcoin bonds!

El Salvador's Finance Minister Alejandro Zelaya said; The country will further delay the release of the expected $1 billion Bitcoin (BTC) bond; Pointing to price volatility and uncertain market conditions resulting from the ongoing Russo-Ukrainian war.

The news comes at the same time that Amnesty International has accused the Salvadoran authorities of "gross violations of human rights and the criminalization of those living in poverty".

The bond plan was initially announced in November 2021 by El Salvador's President Neb Bukele. Half a billion US dollars are expected to be funded to build a “ Bitcoin City ” built near a volcano with the idea that its geothermal energy can be harnessed by Bitcoin miners, the other half of the money raised will be invested in Bitcoin.

The $1 billion bonds were initially scheduled to be launched in mid-March 2022 but after an interview in March; Zelaya delayed the launch citing price volatility, giving a likely launch date around June with a timeline stretching to September 2022.

Growing fears that the country could default on an $800 million bond due in January 2023 led rating agency Moody's to downgrade El Salvador's credit rating on May 4, citing a "lack of a reliable financing plan".

El Salvador's government has been buying Bitcoin since September 2021 with Bukele announcing that the country had purchased another 500 BTC on May 9; It is estimated that El Salvador has lost more than $35.6 million from its Bitcoin investments so far.

11% of US insurance companies invest in crypto

US-based insurers are the most interested in investing in crypto according to a global survey conducted by Goldman Sachs (NYSE: GS) of 328 senior financial and investment officials regarding the asset allocation and investment portfolios of their companies.

The investment banking giant recently released its annual Global Insurance Investment Survey which included responses regarding cryptocurrencies for the first time, finding that 11% of US insurers indicated an interest in investing in cryptocurrencies.

Speaking about the company's exchanges on the Goldman Sachs podcast on Tuesday, Mike Siegel, global head of insurance asset management at Goldman Sachs, said he was surprised to get no result: “We surveyed for the first time on cryptocurrencies which I thought wouldn't get any participants, but I was surprised. . 6% of industry respondents indicated that they have either invested in cryptocurrencies or are considering investing in cryptocurrency.”

  • Asia-based insurers came next, with 6% currently interested or investing, and European insurers with only 1%.

The report found that cryptocurrencies were ranked fifth for the asset class insurers expecting to generate the highest returns over the next 12 months with 6% ranked as their first choice, outperforming the US and European stocks.

About 2% of companies have indicated an existing investment in the digital currency, and while a small number of companies indicate investment or interest, Goldman Sachs analysts wrote that this level of interest “remains remarkable.”

New York Senate Passes Resolution Banning Bitcoin Mining

The New York State Senate on Friday passed a bill targeting proof-of-work bitcoin mining in an attempt to address some of the environmental concerns related to cryptocurrencies, boosting the circulation of the most popular digital currency.

The bill, passed by the state general assembly last month, would impose a two-year moratorium on new carbon-fuelled proof-of-work mining projects, although existing mining companies or those currently undergoing permit renewal would be.

Meanwhile, the Senate voted 36-27 in favor of the bill that would allow operations to continue, and according to the bill's Democratic sponsor, Senator Kevin Parker of Brooklyn, only one plant currently operating would not be affected by the bill, with Kevin saying there is one pending order that could be deferred. until the end of the study.

During the moratorium, the state will conduct a study of the potential environmental impact of Proof of Work mining, and many had expected the bill to end up in committee — and last year's version of the bill met fate — after the Senate Environmental Committee refused to consider the bill during its last meeting of the session.

The committee chair, Senator Todd Kaminsky, said he was concerned that the bill could lead to "harmful economic consequences for New York if people view it as hostile to cryptocurrency."