• Sat. May 21st, 2022

In China and India, cryptocurrencies are in a precarious position; Bitcoin and Ether are on the rise

ByHazel R. Lang

Apr 16, 2022

The world was still grappling with rising prices and bad news from Ukraine. But bitcoin, ether and other major cryptocurrencies had a strong day on Wednesday.

Those prices were consistent with major stock indexes, which rose for the trading day, with the tech-heavy Nasdaq climbing more than 2%. Gold, a riskier asset, was also up.

After nearly two weeks of virtually continuous falls, the largest cryptocurrency by market capitalization was recently trading at around $41,100, up more than 2% in the past 24 hours. Ether, the second-largest cryptocurrency by market capitalization, was trading at over $3,100, up by roughly the same amount over the same period. CoinDesk’s other top 20 coins were all in the green, with AAVE, GRT, and AVAX all gaining over 8% at times.

Crypto trading was light as investors continued to digest the flood of economic data and events that threatened to trigger a global recession.

The fee follows similar moves by Walmart (WMT) and ride-sharing services Uber and Lyft to help offset gas prices. These prices have seen an accelerated ascent since the start of Russian aggression in Ukraine and could continue to rise as countries backing Ukraine’s defense seek to wean themselves off Russian energy supplies.

Natural gas prices closed at their highest level since 2008. Corn prices hit a 10-year high. Amazon (AMZN) has announced a 5% fuel and inflation surcharge for independent sellers using its packaging and shipping services – a first for the online retail giant – from 28 april.

Following a visit to Ukraine, the chairmen of three key German parliamentary committees have urged the European Union to halt imports of Russian oil as soon as possible, even as the German government has continued to resist such ban for fear of triggering a recession. Brent crude, a widely watched measure of energy prices, hit nearly $109 a barrel, up about 40% year-to-date.

The latest developments dampened some glimmers of hope on Tuesday when some economists reported seeing indications that inflation, which hit a four-decade high of more than 8% in the United States, is plateauing.

Crytpo Finance AG’s head of trading, Mike Schwitalla, told CoinDesk TV’s First Mover show that the market is consolidating. “it’s a quiet market” and with the “macro story of rising yields, it’s expected, so the market is fading”. “People are losing interest,” he said. “You see the media attention fading.”

Schwitalla described the crypto as being in “a normal market cycle. We are in the larger range of $35,000 to $45,000. But he warned of “extreme potential risk” if events in Ukraine worsen significantly or if other problematic events in crypto or otherwise occur. Tricky times for crypto in China and India

Despite all its growing popularity around the world, cryptocurrency remains in a delicate position in Asia’s two largest countries, which have played such a significant role in the rapid growth of the industry. In recent months, China and India have created a new, less nurturing environment for digital assets by tightening regulations. Their authoritarian-leaning governments do not appreciate the decentralized nature of crypto that does not take initiative from anyone. Consider the main events of this week. On Wednesday, three major Chinese banking groups – the Internet Financial Association, the China Banking Association and the China Securities Association – announced their intention to “resolutely curb” the tendencies of non-fungible tokens (NFTs) to be converted into financial products and securitized. . , and to limit the risk of illegal financial activities related to the tokens.

In a statement, the three associations said NFTs have the potential to promote “digitalization of industries and digital industrialization”, but warned of financial risks associated with asset hype, money laundering and other illegal financial activities. The latest announcement comes amid China’s year-long crackdown on bitcoin mining and trading. “We should be more vigilant and research potential risks,” according to a statement posted on a Chinese government website last May, adding that the government wanted to “prevent individual risks from being transmitted to society as a whole.” .

China was the world leader in crypto mining and its investors were among the most active in the world. The crackdown triggered an immediate drop in bitcoin’s price – long since recovered – and a reorganization of the mining industry that continues today. Wednesday’s statement cautioned that NFTs are not underlying assets like securities or precious metals, and outlined five other guidelines for consumers in considering these assets. The statement also called on consumers to protect themselves by adopting the “correct concept of consumption”, resisting speculative investments and staying away from illegal financing activities.

Summary of news:

  • In China and India, cryptocurrencies are in a precarious position; Bitcoin and Ether are on the rise
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