The report earlier this week of SK Group’s $1.6 billion investment over the next three years on chips follows a presidential campaign that made it an important issue.
Good morning. Here’s what’s happening:
Prices: Bitcoin and other major cryptocurrencies decline.
Insights: The South Korean crypto industry has had some good news lately.
Technician’s take: BTC is declining from overbought levels; support at $43K.
Bitcoin (BTC): $45,808 -2.7%
Ether (ETH): $3,292 -2.7%
|Solana||SOL||+3.2%||Smart Contract Platform|
|Algorand||ALGO||+0.7%||Smart Contract Platform|
Bitcoin, other major cryptos plunge
There were worsening inflation numbers and a vote by the European Union on cryptocurrencies that the industry viewed unfavorably on Thursday.
Over the past 24 hours, the largest coin in the market was trading under $46,00, a drop of 2%. The second-largest coin by market cap, ether, was off for the same period and changed hands at about $3,300. A number of prominent altcoins were worse than before, suggesting lessened risk appetite for investors. The coins were recently off by 4.5% and 3%, respectively.
Major cripts’ performances mirrored those of equity markets. The tech heavy index was down 1.5%. The U.S. and gold are safe havens. The 10-year Treasury yield continued to decline from Tuesday’s high of 2.5%.
The United States. The Bureau of Economic Analysis reported that the Personal Consumption Expenditures price index rose 6.4% in February. The rate of inflation rose from a month ago. The pace was high in February.
Some traders watch inflation readings closely to see if the market moves after the economic indicators are out. Some investors believe in protection against inflation. The report showed that consumer spending slowed. Initially, it didn’t react to the news.
The industry said the move would stifle innovation and invade privacy. The proposals aim to extend anti-money laundering requirements to conventional payments over 1,000 euro. For transactions with unhosted or self-hosted wallet, recipients and payers would need to be identified.
Lawmakers around the world continued to look for ways to protect consumers from further increases in energy prices. On Thursday, the Biden administration said it was considering releasing 180 million barrels of oil from the U.S.’s reserves at a rate of one million barrels per day. The price ofBrent crude oil, a frequently watched measure of energy prices, was recently selling at $105 per barrel, down 1%.
S&P 500: 4,530 -1.5%
DJIA: 34,678 -1.5%
Nasdaq: 14,420 -1.5%
Gold: $1,937 +0.1%
South Korea has seen a rise in the number of cryptocurrencies.
The Korean Herald reported earlier this week that SK Square, the investment arm of the South Korean conglomerate, would spend 2 trillion won over the next three years.
“This will mark the first year when SK Square creates new shareholder value by investing in chips and blockchain, the fields that we are familiar with, and we see a high growth potential,” Park Jung-ho, CEO and vice chairman of SK Square, told The Korean Herald on Monday.
SK, which has 95 separate companies in chemicals, logistics, energy and materials, has been looking to expand. It is a conglomerate in South Korea. South Korean investors and entrepreneurs’ interest in cryptocurrencies is reflected by the interest of a chaebol.
According to a report last week by the Korea Economic Daily, the firm will introduce a token before the end of the year. A task force is responsible for the project.
The token would be the first of its kind launched by any company in South Korea. According to the Economic Daily, the group’s businesses will be able to use the cryptocurrencies.
The world’s second-largest memory chipmaker is owned by SK Square. SK Telecom acquired a 35% stake in Korbit.
The election of one of two presidential candidates who promoted crypto-friendly proposals in an effort to win younger voters is behind the most recent initiative by SK Group. The conservative candidate who won the election said he would take legal measures to return the profits from illegitimate sources.
The bill’s opponents say India’s passage of a finance bill with high taxes will hinder the industry’s growth.
“Treating profits and losses of each market pair separately will discourage crypto participation and throttle the industry’s growth,” said Nischal Shetty, CEO of crypto exchange WazirX, in a statement. “It’s very unfortunate and we urge the government to reconsider this.”
The measures impose a 30% capital gains tax and a 1% tax deducted at source without offsetting losses. Lawmakers didn’t agree with the idea of limiting the source tax.
Bitcoin Dips From $48K Resistance; Support at $43K
There was a response to resistance at $48,000 by the sellers. The down move could be stopped by the support of $43,000.
The relative strength index (RSI) on the daily chart is showing signs of decline. The RSI is neutral on the weekly chart Buyers could be active at lower levels.
Similar to what happened in early February, when a brief price drop preceded a two week long uptrend, the price of BTC is attempting to break below a two week long uptrend.
To get an upside target toward $50,966, buyers will need to maintain the break above $45,000.
The most recent episode of “First Mover” is on CoinDesk TV.
The hackers stole $625 million worth of USDC and ether and used centralized exchanges to deposit thousands of dollars. Adam Darrah of ZeroFox shared his analysis on what may be the biggest hack in history. Mauricio Di Bartolomeo is from Ledn. Cordell Broadus explained their latest comic book.
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