February 7, 2023

This Week in Coins: Twitter Speculation Sends Dogecoin Higher, Bitcoin and Ethereum See Green

This Week in Coins: Twitter Speculation Sends Dogecoin Higher, Bitcoin and Ethereum See Green

This week in Coins. Illustration by Mitchell Prever for decoding.

If it was last week Variety bag flatness of the largest coins, This week provided the first real signs of gains in the aftermath of the disastrous FTX bankruptcy rush.

Bitcoin (BTC) is up 2.7% over the past seven days and is currently trading around $17,000. Its nearest competitor Ethereum (ETH) is up 6.7% and is trading for $1,285 at the time of writing, according to data from Queen Gekko.

Both leading cryptocurrencies appear to be embarking on a modest recovery, after starting the week with a bearish drop when news of civil unrest in China emerged. Risky assets such as technology stocks and cryptocurrencies rocked. Protesters have been demonstrating against the ongoing strict COVID measures in the country, raising fears that the world’s second-largest economy could crash.

The market also fell on Monday after news that cryptocurrency lender BlockFi was bankruptcy application. BlockFi is the latest in a long line of crypto companies to be hit after the collapse of cryptocurrency exchange FTX.

risk assets He recovered on Wednesday When the Chairman of the Federal Reserve, Jerome Powell, said in a speech that December would lead to lower interest rate hikes. This signals the end of the cycle of highs –three so far This year, all 75 basis points — it was the sharpest Since 1994.

Although all major currencies posted growth, the gains were mostly small. However, several names enjoyed turbocharged gains, including Chainlink (LINK) – up 11% to $7.59, Uniswap (UNI) exploded 12% to $6.12, and Polygon (MATIC) – up 8.4% to $6.12. $0.922278.

Dogecoin (DOGE) has enjoyed a staggering 21.5% rally and is trading for nearly 10 cents at the time of writing.

It was DOGE’s weeklong run stimulate by a tweet From Twitter’s new CEO, Elon Musk, which includes slides from a recent Twitter corporate talk he gave. One slide mentions “Payments” but doesn’t give details. However, that was enough to send the doge army into speculation that their currency of choice could be Twitter’s official digital currency; It is, after all, Musk’s favorite, too.

Lawmakers and regulators voted on FTX

Lawmakers around the world continue to seriously monitor and debate space, especially in the wake of the year’s two biggest disasters: Terra and FTX. On Monday, Brazil’s Congress took it a step further than most and Bill passed Legally approving cryptocurrencies for payments of goods and services in crypto.

The bill, which still needs presidential approval, includes travel rewards on cryptocurrencies and airlines in the definition of “payment agreements” under the supervision of the country’s central bank.

The next day, the European Central Bank published a damning paper that argued that a prolonged Bitcoin price stabilization at around $20,000 before the FTX crash might beOne last artificially induced gasp Before the road to irrelevance.

In the blog postDirector General of Market Infrastructure and Payments at the European Central Bank, Ulrich Bindsel, and Chancellor Jürgen Schaff also argue that “Bitcoin’s conceptual design and technological shortcomings make it questionable as a means of payment.”

US Senator Cynthia Loomis (R-WY) Bitcoin Friend – Co-Sponsor of Bipartisan House Bill Responsible Financial Innovation Act Advocating for the Commodity Futures Trading Commission (CFTC) to be the primary regulator for the industry — the collapse of FTX highlights the need for Congress to “learn more” about cryptocurrencies, he said Monday in a pre-recorded speech at the Financial Times’ Crypto and Digital Asset Summit.

Known as the “Bitcoin Senator” for her defense of the cryptocurrency on Capitol Hill, Loomis described her bill as a “framework” for understanding how to prevent an FTX disaster.

She also noted that FTX was “heavily involved” in crafting the Digital Goods Consumer Protection Act (DCCPA), which Senate Agriculture Committee Chair Sen. Debbie Stabenow (D-Mich.) and Sen. John Bozeman (R-Ark.) are supporting – a bill It says it “needs to be rewritten in a way that is more effective and neutral about business models, but very focused on consumer protection”.

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