Weekly Crypto Update: Expansion and maturation
Cryptocurrency analyst, Saxo Bank
This week the entire crypto market cap fell 12.5%, according to coinmarketcap. Ethereum and Bitcoin fell similarly by 12% and 12.5% respectively since the start of the week. Combined, these two assets represent about 60% of the entire market cap for cryptocurrencies, while the next eight assets account for 23% of the market.
El Petro is largest ICO to date
Venezuela’s President, Nicolás Maduro, announced that the Petro raised $5 billion in its pre-sale. This amount of funding would make the pre-sale of the oil-backed crypto the largest ICO to date with individuals from 127 countries making bids for the cryptocurrency. While the country’s congress has declared the sale illegal, Maduro and his team continue forward hinting at the release of a gold-backed version of the Petro.
World’s largest crypto miner opens in the US
Bitmain, the world largest bitcoin miner and hardware provider is opening a US subsidiary according to leaked documents. Bitmain has an estimated 70-80% of the bitcoin miner market and 42% of the network hashrate is said to have made over $3bn in profits last year, putting it on par with chipmaker NVidia. This represents the expansion of the industry as many of the larger firms in crypto such as Bitmain and Coinbase are well-capitalised and looking to make acquisitions.
US industry follows the Japanese lead
The CFTC backs the Winklevoss brothers attempt to form a self-regulatory organisation (SRO) for the US crypto market. The proposed SRO would function as an independent non-profit to address the gap in today’s framework and potential future regulation. This announcement comes after the Japanese FSA allowed a group of Japanese crypto exchanges to form their own SRO after the Coincheck hack. This move could bring more certainty to the US crypto market.
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Outrageous Predictions 2023: The War Economy
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French President Macron resignsThe political stalemate in France and the rise of Marie Le Pen following the 2022 elections corners President Macron, forcing him to give up on politics and resign from his position. At least for now.
Gold rockets to USD 3,000 as central banks fail on inflation mandateAs markets and central banks realise that the idea that inflation is transitory is wrong, and that prices will remain higher for longer, gold is sent through the roof, hitting a price tag of USD 3,000
EU Army forces EU down path to full unionWith continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer.
A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve assetSanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
USDJPY fixed to the USD at 200 as Japan overhauls financial systemFollowing the challenges that faced the Japanese Yen in 2022, the Bank of Japan attempts to keep the currency from sliding. Unsuccessful on the long-term, Japan will launch a reset of its entire financial system.
Tax haven ban kills private equityWith the war economy comes an increased focus on national interests and sovereign nations' ability to assert themselves. In that regard, the OECD countries turn their attention on tax havens and pull the big guns out, banning them altogether.