Markets and news: April 21st, 2022

news

News in brief

Growth in Europe is likely to slow down and a recession is increasingly likely. But European stocks are not yet fully pricing in that possibility, Bloomberg reported. The risk of recession is also greater in the euro area than in the US because of weaker fundamentals, the proximity of the Russia-Ukraine war, which is hurting supply chains, and greater sensitivity to rising food and energy prices. The slowdown in China is also another obstacle for Europe. Regulatory crackdowns, draconian Chinese restrictions due to Covid-19 and a reluctance to turn on the taps of monetary policy have led to reduced growth.

Crypto markets

Bitcoin erased all losses from this Monday’s crash and even spiked to a ten-day high above $42,000, and so far maintained the level. Ethereum followed suit with a similar local peak. Altcoins also went through the same volatility at the beginning of the week, with notable price dumps on Monday and recovery  in the following few days. However, on a daily scale, most of the altcoins seem relatively calm.

Bitcoin (BTC) is now trading at 42,687 USD up by 1,5% in 24h

Ethereum (ETH) is now for 3,159 USD up by 0,3% in 24h

PlatonCoin (PLTC) is now for 0,631 USD down by 0,4% in 24h

Total marketcap is currently at 2.067 trillion USD up by 0.4% in 24h

(all data valid at the time of publishing, from Coingecko.com)

Crypto news

Binance and Russia: Binance has become the first crypto exchange to act on the European Union’s new crypto sanctions. The world’s largest crypto exchange announced that it has begun limiting its services in Russia following the European Union’s recently imposed ban on “providing high-value crypto-asset services to Russia.” Per the new rules, Binance has put the accounts of Russian nationals and persons and legal entities residing there with over €10,000 ($10,885) on the exchange on “withdrawal-only mode.”

Commerzbank and crypto licence: One of the largest banking institutions in Germany has confirmed that it applied for a local crypto license earlier this year, marking the first time a major bank has made a move toward cryptocurrencies in the country. Commerzbank serves over 18 million customers and over 70,000 institutional clients, and the cryptocurrency offering will reportedly target its institutional client base.

Morgan Stanley and crypto: Few people use cryptocurrencies to pay for everyday goods because transaction fees are high and merchants don’t accept crypto in payment, but that is changing, Morgan Stanley said in a research report Thursday. Morgan Stanley says partnerships with physical stores are a more important milestone in the “evolution of bitcoin usage as a medium of payment,” as over 85% of sales in the U.S. occur in shops rather than online.

EU and ban on trading crypto: A Document obtained through a freedom of information request reveals the measures that European Union officials have considered to help curb Bitcoin’s energy use. In addition to demanding the top cryptocurrency switch to a Proof-of-Stake validation mechanism, the document indicates an outright ban on trading is also on the cards.

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