Cryptocurrency market last week: Bitcoin fluctuated up and down, nearing the $ 46,000 threshold
The Fed’s drastic move, as well as the fact that Tesla was accepting payments in Dogecoin, was notable news in the virtual currency market over the past week.
The virtual currency market reacts positively to the information from the Fed
The Fed has sent many signals that the era of ultra-loose monetary policy is coming to an end, while at the same time taking drastic monetary policy steps to counter rising inflationary developments.
First, the Fed announced it would accelerate the process of reducing monthly bond purchases, and the bond purchase program is slated to end in mid-March 2022.
After that, the Fed is expected to start rate hikes again, with a forecast of three rate hikes in 2022.
Bitcoin price rebounded over $ 49,000 after the above news. Observers assume that the world’s largest cryptocurrency reacts positively to interest rate information U.S. dollar The increase is due to the fact that these effects will not set in until mid or late 2022.
Professor Merav Ozair, Professor of Finance and Economics at the Rutgers School, commented, “The cryptocurrency market had a negative reaction prior to the meeting. When the results came it was more or less predictable. , the market did not react strongly, but adapted it. Inflation is sure to happen, and we’ve all seen it. ”
Elon Musk Says Tesla Accepts Dogecoin Payments
On December 14, Elon Musk said Tesla would accept payments in Dogecoin for some products. “Tesla will accept payments for some products in Dogecoin and see how things go,” the Tesla CEO said in a tweet.
Musk often talks good about Dogecoin, calling it his favorite digital currency, and mentions Dogecoin on NBC’s Saturday Night Live.
taste CEO Tesla also argues that Bitcoin is better suited as a store of value, while the Dogecoin meme coin is more suited to real-world exchanges. “Although it was made as a silly joke, Dogecoin is still better for transactions,” said Elon Musk.
According to information provided by Mr. Elon Musk, this digital currency sometimes rose by more than 20% before falling again. Throughout the week, Dogecoin only rose nearly 3% to 0.1694 U.S. dollar.
Thailand is in the process of introducing a series of “red lines” with the virtual currency market
According to Bloomberg, the Bank of Thailand is expected to issue a consultation document in January to seek consensus between the population and the relevant authorities on three “red lines” for private individuals. Individuals and organizations working in digital currency, green finance, and related fields.
The governor of the Thai central bank, Sethaput Suthiwartnarueput, announced this information in an interview on December 13th. These regulations are designed to encourage technological innovation, financial inclusion and systemic risk management, Sethaput said.
The Bank of Thailand is currently working with the Securities and Exchange Commission (SEC) and the Treasury Department to “draw red lines that we don’t want to see,” Sethaput said. As an example, he cited that “virtual money cannot become a means of payment”.
New coin Avalanche has entered the top 10 largest virtual currencies
On the morning of December 18, the Bitcoin price hovered at 46,325 U.S. dollar, down more than 4% in the past week. Meanwhile, Ethereum – the second largest digital currency – has hit the 3,900 mark. lowered U.S. dollar after a decrease of more than 3% in the last week.
This week there has been a notable rise in the price of a new digital coin with a steep increase of almost 34%. Avalanche has also entered the top 10 largest cryptocurrencies.
The market capitalization of cryptocurrencies drops slightly to 2,160 Billion USD, compared to 2,230 Billion USD 7 days ago.
Top 10 largest digital coins