We’re not having a great time in the cryptocurrency markets for now. Bitcoin (BTC) lost its last support at $35k, decreasing by over 13% in the last week. Meanwhile, the whole crypto market erased 11% during the same period [CoinMarketCap]. Beyond Bitcoin, some currencies managed to avoid the crash, though. Among them, Monero (XMR) and Tron (TRX) stand out.
The main reason behind the recent Bitcoin crash seems to point to the recent interest rate decision by the U.S. Federal Reserve (Fed). They’re going to raise the interest rates by 0.5% —the higher adjustment in over two decades. Additionally, the global economy is also stumbling.
Inflation isn’t growing only in the United States, but also in Europe. The latter hit a record high for the sixth month in a row, with over 7.5% in April. China doesn’t have good news either. A new outbreak of COVID-19 and its subsequent quarantine might cause a global supply chain crisis.
On top of all of this, volgens Meltem Demirors, Chief Strategy Officer at CoinShares, several governments may be looking to silently ban Proof-of-Work (PoW) mining —and thus, Bitcoin. They’d allege energy concerns, but perhaps the main reason would be to stop further decentralization. A proposal to ban PoW coins was recently rejected in the European Union, indeed.
If the circumstances continue as currently, Bitcoin could crash to a low of $28,000 – $21,000 soon, as indicated by some expert traders. On the other hand, other experts believe there’s still one All-Time-High (ATH) ahead before a neutral market.
Bitcoin crashed, but Monero and Tron resist
Probably thanks to its new algorithmic stablecoin, Tron (TRX) increased by over 14% in the last week. The new Decentralized USD (USDD) is now live on this blockchain, and it’ll be also available on Ethereum and BNB Chain via the BitTorrent network’s cross-chain protocol. As de aankondiging reads:
“USDD will be pegged to the underlying asset, TRX, and issued in a decentralized manner. When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD.”
Besides, the non-custodial exchanges Alfacash and Alfacash Store; and the payment processor ALFAcoins recently added this asset to their list. On the other hand, Monero gained around 7% in the last week. Deze privacy coin will have soon an update to apply a new feature: the “Tail Emission”.
The Tail Emission will ensure at least 0.6 XMR per block for the miners, independently of the usual transaction fees. That’s something done to secure the network in the future (when the mining rewards finish). The update also brings dynamic block sizes, in case of network congestion.
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