US Fed hikes interest rates, Bitcoin plunges below $36K, and Argentina’s central bank says no to financial institutions offering crypto: Hodler’s Digest, May 1-7

Coming every Saturday Hodler’s compendium It will help you keep track of all the important news that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more – a week on Cointelegraph in one link.

Top news this week

The Fed raises interest rates by 50 basis points in an effort to fight inflation

On Wednesday, the US Federal Open Market Committee (FOMC) voted to raise interest rates by 0.5%, marking their biggest hike in more than two decades. It was the second rate increase of 2022, with seven increases expected in total for the year.

In a press conference following the FOMC meeting, Federal Reserve Chairman Jerome Powell further cemented the need to continue raising interest rates to combat inflation.

Coinbase Obtained First Bitcoin-Backed Loan From Goldman Sachs

Coinbase took an important step in bridging the mainstream world and the world of cryptocurrency through the use of Bitcoin. as collateral for a loan with Goldman Sachs. The actual mechanics of the deal involved Coinbase taking a loan from Goldman that was collateralized with some of the exchange’s BTC holdings. However, the amounts were not specified.

“Coinbase’s work with Goldman is a first step in recognizing cryptocurrencies as collateral that deepens the bridge between the fiat and crypto economies,” Brett Tejpaul, head of Coinbase Institutional, told Bloomberg.

Binance commits $500 million to co-invest in Twitter with Elon Musk

In April 2022, Tesla CEO Elon Musk revealed his intention to buy Twitter, pending certain approvals, for $44 billion. That $44 billion isn’t just out of Musk’s pocket, but includes contributions from 19 other players. Cryptocurrency heavyweights Binance and Sequoia Capital Fund are among the contributors, putting up $500 million and $800 million, respectively.

Court orders BitMEX founders to pay $30 million civil penalty

A court decision on Thursday resulted in BitMEX co-founders Benjamin Delo, Arthur Hayes, and Samuel Reed having to pay a combined $30 million in civil penalties ($10 million each) for legal violations related to their operation of the exchange. BitMEX.

Claimed offenses included failing to meet certain customer data requirements, failing to obtain proper regulatory approvals, and more. The $30 million ordeal comes after other previous legal troubles.

SEC Doubles Down on Cryptocurrency Regulation by Expanding Unit

The US Securities and Exchange Commission (SEC) plans to beef up its Crypto and Cyber ​​Assets Unit, a division of the SEC in charge of policing the crypto industry. Plans include adding 20 people to the unit, bringing the total team count to 50 members.

The additional staff will nearly double the unit’s current size in terms of staffing. SEC Chairman Gary Gensler spoke favorably of the plans, while Hester Peirce, one of the SEC’s commissioners, questioned the move.

winners and losers

At the end of the week, Bitcoin (BTC) I sat down $35,983ether (ETH) in $2,689 Y XRP in $0.59. The total market capitalization is $1.65 trillion, according to CoinMarketCap.

Among the 100 largest cryptocurrencies, the top three altcoin gainers of the week are TRON (TRX) at 27.92%, anchor protocol (AFRICAN NATIONAL CONGRESS) at 17.18% and Algorand (SOMETHING) at 10.21%.

The top three altcoin losers of the week are ApeCoin (BOW) to -39.48%, STEP (GMT) at -34.06% and Kava (KAVA) at -27.18%.

For more information on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.

most memorable quotes

“I think of Bitcoin the same way I think of the early days of the internet. [The government] I didn’t see it coming and now it’s a viable form of currency – you can actually buy things with it.”

joe roganpodcaster

“If you just did an overlay of the Nasdaq and the crypto markets, they are incredibly correlated right now, so I think that’s creating a lot of turmoil and pain in the markets. As that happens, billions of dollars are pouring into Web3.”

Antonio Scaramuccifounder and managing partner of SkyBridge Capital

“If you told me you had all the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it?”

Warren BuffetCEO of Berkshire Hathaway

“Why is a painting worth 10 million dollars? It is oil on canvas. So the value is in the eyes of the beholder.”

ken griffinfounder and CEO of Citadel Securities

“Why are you going to invest so much effort in developing a […] Stable currency payment system if the Fed is just going to put it out of existence?

randal quarlesformer vice president of supervision of the United States Federal Reserve

“The NFT market is crashing.”

Paul VineWall Street Journal reporter

prediction of the week

Bitcoin Drops to $35.5K as 1,000 Point Dow Correction Marks Worst Trading Day Since 2020

Bitcoin suffered some downward price action last week. On Thursday, the price of BTC fell below $36,000 in a sell-off that hit both crypto and legacy financial markets.

Some technical strategists consider the $37,500 level to be the pivotal line in the sand in terms of bullish versus bearish narratives. Bitcoin’s drop below that threshold suggests that its short-term outlook has turned bearish.

fud of the week

Warning: Smartphone Text Prediction Guesses Crypto Hodler’s Seed Phrase

Reddit user Andre, also known as u/Divinux, recently posted a warning on the social networking site explaining that a mobile phone’s predictive text can potentially guess the owner’s cryptographic seed phrase if the phrase has been entered into the device. . Andre tested his findings on various device brands and found similar results. This could put the mobile phone owner at risk of cryptocurrency theft.

Over $1.6 Billion Mined From DeFi So Far In 2022

Crypto-related theft through hacks and other malicious activity in 2022 has already eclipsed the previous two years combined, according to data from blockchain security firm CertiK. In total, 2022 has seen the appropriation of around $1.6 billion worth of crypto assets so far.

That said, context is everything. The value of the decentralized finance market has skyrocketed in the last two years and currently stands at approximately $200 billion in terms of total value locked, according to DeFi Llama.

Argentina’s central bank steps in to block new cryptocurrency offerings from banks

In Argentina, financial institutions are prohibited from providing crypto trading to clients, according to a resolution by the Central Bank of Argentina, or BCRA. In justifying its decision, the central bank cited familiar concerns surrounding cryptocurrencies, including a lack of proper regulation for the asset class.

Earlier in the week before the BCRA motion, a couple of notable Argentine banks revealed plans to offer certain crypto assets for customers to purchase.

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