Cryptocurrency prices fell on Monday, April 18, with bitcoin hitting a one-month low, as investors looked for signs that the Federal Reserve could raise interest rates next month.
Bitcoin was down nearly 3% to $39,218 when last checked, according to CoinGecko, Ethereum was down 3.8% to $2,934 and Dogecoin was down 5.1% to $2,934. $0.136349.
“A falcon pivot to brake”
Winston Ma, managing partner of CloudTree Ventures, author of The digital war – How China’s technological power is shaping the future of AI, blockchain and cyberspace,” said bitcoin is hovering around the key $40,000 level these days as the market keeps its eyes on on the Fed.”
“In the coming days, the Fed Chairman may bolster bets that the Federal Reserve will raise interest rates by half a point next month,” Ma said. “Jerome Powell will speak at the an event on Thursday and later in the day he will participate in a panel hosted by the International Monetary Fund.”
Ma said comments from his Fed colleagues over the past few weeks have bolstered expectations that they will make the move, “as officials extend a hawkish pivot to rein in runaway inflation.”
If the Fed chairman reinforces the expectation of a 50 basis point hike in May, bitcoin and other cryptocurrencies could come under further downward pressure, he said.
Meanwhile, David Lesperance, managing partner of immigration and tax consulting at Lesperance & Associates, said that “one of the unintended consequences of Putin’s decision to go to war in Ukraine is that the blockchain and booming Russian technology could be permanently crippled”.
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“More than 70,000 IT workers have fled the country since the Russian invasion of Ukraine began in February,” he said. “Industry groups and investors with close ties to Russia are warning that this exodus is just the first wave and that many of the country’s other most talented entrepreneurs and tech leaders will soon flee as well.”
He added that “although most of the so-called Golden Visa programs are closed to all Russian nationals – not just sanctioned oligarchs – there are still a variety of other routes, including skilled workers, start-up visas , the refugee and digital nomad options available to those fleeing Russia.”
MoonPay becomes Hollywood
On the regulatory front, Lesperance said that while the blockchain world awaits the outcome of the current jurisdictional battle between the Securities and Exchange Commission and the Federal Trade Commission, Hollywood stars are taking a brisk walk through the NFT universe.
“A key legal question is whether digital assets such as NFTs are securities,” he said. “Previously, the SEC has ruled that it is illegal for anyone to tout a security, such as a stock, without disclosing a financial relationship or ownership to the source.”
In other words, Lesperance said “celebrities who are compensated should disclose their payment.”
“To gauge celebrity interest in NFTs, look no further than the recent funding round announced by crypto-payment company MoonPay, which focused on the payment experience of buying and selling. the sale of NFT.” he said.
Lesperance added that MoonPay said up to 16% of its initial $555 million funding round came from musicians, actors and other personalities such as Ashton Kutcher, Gal Gadot, Gwyneth Paltrow and Matthew McConaughey. .