There is concern about the possible deepening of the debt after the announcement of the US trillion dollars (European trillion) that is planned to be issued. That can reactivate the debt crisis and the rise in interest rates.
This week we have been surprised by the Central Bank of Canada, which has raised interest rates. It is considered a leading indicator of the Federal Reserve, the same as that of Australia.
The central bank of Canada is not only a leading indicator of the Federal Reserve, it may also be a leading indicator of crypto adoption. Check out this official video from their youtube channel about the Canadian Digital Dollar, they are hands on the business:
Although there is controversy between the use of blockchain technology for cryptocurrencies and its use for central bank digital currencies (CBDCs). There are those who affirm that the CDBC are NOT crypto.
Complex times lie ahead due to the excessive level of debt, as important managers such as Rey Delio have pointed out.
Next week the decision of the Federal Reserve and the European Central Bank on interest rates is eagerly awaited. An increase in spending is expected in the coming years, but it is unknown where the debt ceiling is.
The S&P500 and the Crypto market could move significantly higher in response to the US trillion dollar move, just as we saw with the bubble created when millions of dollars were pumped into the market to compensate the covid measures.
The S&P500 could move significantly in response to the US trillion dollar move.
Bitcoin is in a short-term corrective phase, but it remains an interesting risk investment in the medium and long term. A major bullish movement is expected for Bitcoin in the next year due to the halving. Free your agenda for the next month of April or May, the halving is coming 😉
China is moving forward
Some claim that CHINA is changing its policy on crypto, I think that it is very clear about its roadmap and that it is following the path of its adoption and its attempt to maintain a position of privilege and dominance. He’s one of the biggest BTC holders of the planet for a reason 😉
Now it seems that we have gone from a complete ban to a radical change that allows and encourages the adoption of cryptocurrencies. This is a small summary of his latest movements.
- Tencent Involvement: Tencent, a large tech company in China, has obtained permission to connect to various blockchains and projects, which was unthinkable a few months ago.
- Investment in Blockchain and Crypto: China is allocating million-dollar budgets for the development of the cryptocurrency industry.
- The Chinese Government launches a plan to boost Web 3.0: China has released a plan for the development of Web 3.0 in the country over the next 10 years, highlighting its focus on the metaverse and digital identity, which coming from China is not It means greater financial freedom. Papers are beginning to leak about it.
- Blockchain Training: China has started running blockchain courses at its major universities and plans to train more than 500,000 blockchain specialists. This is great news for the Belobaba Academy who should start speaking in Chinese 😉
- Hong Kong, a special administrative region of China, has launched licenses for crypto businesses. This could be a first step towards full crypto adoption in China.
China, being the world’s first economy, could start a bull market if its population starts buying crypto.
This is in contrast to the US government’s political battle with Binance and Coinbase. By the way, Binance has leaked that Gary Gensler, head of the SEC, applied to work for Binance in 2019 and was turned down.
As you already know the United States Congress has passed the law to suspend the debt ceiling, what you may not know is that part of this agreement also removes a law that proposed to charge 30% tax on Bitcoin mining.
And meanwhile, in the crypto sector: Tether, the largest stablecoin on the market, has announced that it will buy Bitcoin with its profits and start mining it. This decision by Tether could mean purchases of almost a billion dollars each year in Bitcoin, potentially fueling a bull market. The gains that Tether makes from Bitcoin could strengthen its reserves, reducing the risk of a stablecoin collapse. Tether has also announced that it plans to mine Bitcoin in Uruguay or El Salvador. It’s important to understand that they are not buying Bitcoin with USDT reserves, but with the company profits.
Interesting market situations here.
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