Wednesday, 22 March 2023

Market Summary

Market Summary 22 March 2023

Bitcoin Price: US$ 28,105.47 (+1.40%)
Ethereum Price: US$ 1,801.23 (+3.95%)  

 

The 2023 Economic Report of the President, which is a 513-page annual report issued by the White House, criticised the design of digital assets like cryptocurrencies and warned that their volatility and susceptibility to fraud pose risks to consumers and investors. The report claimed that these assets frequently reflect ignorance of basic economic principles that have been learned in economics and finance over centuries. Meanwhile, an on-chain indicator called Network Value to Transaction (NVT) ratio suggested that bitcoin’s current price is cheaper compared to its relative valuation, despite the recent price increase, due to an increase in transaction activity, indicating bullish sentiment.

Crypto market participants hope that the US Federal Reserve will maintain the status quo and not raise interest rates, to prioritise banking sector stability amidst the recent bank failures. However, some analysts expect the Fed to hike rates by 25 basis points due to continued elevated inflation, which would lift the benchmark borrowing cost to the 4.75%-5% range and possibly reduce bullish exposure to bitcoin. On the other news, although bitcoin’s price has risen above the February 2023 highs of $25,200, institutional investors have been net sellers in 2023, and the largest two-week sell-off from investment funds since March 6 has erased the positive inflows for this year, with the net year-to-date flow equalling negative $177 million. Retail investors have been mainly driving the uptrend, while the divergence between whale and retail investment may lead to a short-term pullback in Bitcoin prices.

Decentralised exchange SushiSwap received a subpoena from the Securities and Exchange Commission (SEC) and has proposed a legal defense fund to cover potential legal costs. The platform is currently cooperating with the SEC. Meanwhile, the Internal Revenue Service (IRS) and the US Treasury Department may prevent non-fungible tokens (NFTs) from being included in individual retirement accounts. They also plan to issue guidance that could see NFTs treated similarly to physical collectibles like art, coins, and antiques, which cannot be added to retirement accounts, and could impact how they are taxed when swapped or sold on secondary markets.

Sony has submitted a patent application to create digital infrastructure to allow gamers to own and transfer digital NFT assets across different video game platforms. The tech giant wants to create a standardised format that can be read by different computer simulations and video game platforms, such as PlayStation and Xbox. In other news, non-fungible token (NFT) marketplace Magic Eden has launched a fully audited Bitcoin NFT marketplace, allowing traders to list, purchase and sell inscriptions, or NFTs minted on satoshis within the Bitcoin network. The company has integrated support for Bitcoin wallets Hiro and Xverse to help collectors do so.

 

Source:
https://cointelegraph.com
https://coindesk.com
https://decrypt.co 

 

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