Cryptic ball: time to build new stablecoins.
As anticipated yesterday, not much is happening in the markets and such boredom shall continue for a while. Powell is speaking now in a WSJ conference, with some arguing that the Fed's Chair isn't say much of interest. Is that the case?
- Initially yes, but Powell just answered another question saying that "the economy is too uncertain to provide guidance" and both US stocks and crypto started dumping. Not much, but it's crazy how the man moves the markets.
- Bitcoin just fell 2.5% in 15 minutes, while the S&P 500 dropped 1%. I'm expecting these moves to be bought up again as traders understand this was just short-term manipulation of the most powerful central banker's speech.
- On other news, did you know China is back to mining Bitcoin? The country currently accounts for roughly 20% of the BTC hash rate, after Cambridge data showed it fell to 0% last year. Let's hope China doesn't try to ban it again!
- As for the next days, let's see for how long can bitcoin keep trading around $30k. Any deviation from that level will be widely felt in alts, which haven't recovered since last week's implosion of Terra and its UST stablecoin.
Oh, and if you're curious about the topic, check my latest project: Yug Network. It is a fully collateralised stablecoin that is backed by government bonds, an idea which was recently floated by Su Zhu from Three Arrows Capital and for which we already have a patent in the US. This is the time to build!
Chart art: time to be early.
Three things: time to regulate.
- a16z discusses the State of Crypto in 2022. A must-read.
- Tascha Che shares 5 lessons from the Terra/Luna fall-out.
- Jake Chervinsky offers some thoughts on stablecoin regulation.