The strong recovery of most of the major crypto assets is particularly encouraging at this point in the face of rising interest rates and global geopolitical uncertainties. Both tend to direct investors from risky assets to safe shelters.
In this week’s crypto update, eToro market analyst and crypto expert Simon Peters will discuss Bitcoin rebounds, Bitcoin reserves, fee payments and crypto tax payments in Rio.
Bitcoin broke through key resistance levels last week and soared overnight on Sunday.
The world’s largest crypto asset rebounded in March, with tokens starting at less than $ 41,000 last week and now trading at around $ 46,400. This is an increase of over 13%.
Tokens broke through major resistance levels last night and traded at around $ 44,000 for most of the week. It has now reached a three-month high and has almost reversed all losses since 2022. BTC is priced at $ 45,000 and this week’s payment range is in the spotlight.
Meanwhile, Ether soared. It started in the week under $ 2,900 and traded up to about $ 3,100 on Sunday. However, it soared overnight and is now trading at prices just below $ 3,300.
The strong recovery of most of the major crypto assets is particularly encouraging at this point in the face of rising interest rates and global geopolitical uncertainties. Both tend to direct investors from risky assets to safe shelters.
In particular, interest rates can have the effect of depleting the market for capital, so making sure that cryptocurrencies are still working strongly is what investors see in the case of future crypto assets. Evidence of your unique strengths.
Luna Foundation builds reserves
The Luna Foundation has accumulated fresh reserves of approximately 24,955 Bitcoins. That’s about US $ 1.1 billion.
Stablecoin TerraUSD (UST) and the foundation behind its blockchain are accumulating Bitcoin to stabilize UST. Detectives in the crypto community follow the path of recent Bitcoin purchases and end up with a wallet believed to be owned by the Foundation.
Terra founder Do Kwon recently made a very probitcoin comment in the media. And now there is speculation that such large-scale transactions are beginning to move the crypto market positively over time. I used to buy about $ 2.2 billion worth of Bitcoin. This means that the Foundation is currently a serious whale on the market.
It’s hard to tell what this is saying about other ciphers. Terra was ultimately a competitor to something like Ethereum, and as a result, built an important DeFi ecosystem in a short period of time. The goal of the Terra Foundation is to build a $ 10 billion Bitcoin bank. Therefore, the support this move is providing to the market may continue for some time.
Vitalik Buterin admits that Ethereum pricing is an issue
The founders of the world’s second-largest blockchain acknowledge that the high prices of the Ethereum platform are a major challenge.
Vitalik Buterin acknowledges that high fees cause usability issues, especially except for pure financial transactions. He also blamed his own blockchain network for “social” issues that prevented significant technological changes from taking place. In addition to this, he warned that the network could be used by malicious individuals after personal gain.
Such statements are a concern from the founders of major networks like Ethereum. But in the end, many of its features are now beyond Buterin’s control and are managed in a way designed to be decentralized.
Major updates are underway to improve areas such as fees and staking. This can have a positive impact on prices as it lowers fees and makes tokens deflationary.
Rio is ready to pay cryptocurrencies
The Brazilian city of Rio de Janeiro says it will soon be able to accept crypto assets as tax payments, starting with property tax payments. However, the city will use the crypto company to return the crypto paid for tax purposes to the Brazilian Real.
There seems to be fierce competition between cities around the world, as seen at the forefront of crypto adoption and acceptance. From Miami to Denver to Rio, it’s becoming more and more real for people to be able to pay one of their most basic invoices, the tax, in cryptocurrencies.
The potential reward for this cannot be underestimated. One of the cryptographic problems at the moment is the limited difficulty between the holder and one of its largest creditors, the state. We pay governments taxes in a myriad of ways, so making cryptocurrency an acceptable payment method is huge. Rio is just one city, but this is just one step towards adoption by Brazil as a whole. This is a huge country with a very high probability of adopting cryptocurrencies.
