How the ECB is endangering the euro – and what it means for bitcoin

How the ECB is endangering the euro – and what it means for bitcoin

As deflationary money, Bitcoin serves as a hedge against runaway inflation. This is already being felt in many developing countries. Why the ECB is putting the euro at risk and why we need Bitcoin now more than ever.

Inflation is one of those things. Even if the Bitcoin community likes to use the central banks‘ expansive monetary policy as a reason to call for high inflation rates: There is currently no talk of inflation. In fact, the price level in Germany is actually declining. To be Bitcoin Machine more precise, the inflation rate officially determined by the Federal Statistical Office for December 2020 was minus 0.3 percent.

And that is quite astonishing in view of the considerable flood of money with which the European Central Bank (ECB) has literally flooded the market over the last twelve months.

#ECB balance sheet back >€7tn ahead of this week’s meeting. Hit fresh ATH at €7,015.7bn as Lagarde keeps printing press rumbling. ECB’s total assets now equal to 69% of #Eurozone GDP vs Fed’s 35%, BoJ’s 130%, BoE’s 36.4%. pic.twitter.com/UVB0erhc2u
– Holger Zschaepitz (@Schuldensuehner) January 19, 2021

The ECB’s balance sheet has risen from just under five trillion euros to now over 7 trillion euros within a year. The balance sheet total now amounts to 69 per cent of the Eurozone’s approx. 18 trillion euro gross domestic product.

The purchase programmes that have made this unique monetary experiment possible have meaningful titles such as „Pandemic Emergency Purchase Programme“ (PEPP, volume: 1.85 trillion euros) or „Corporate Sector Purchase Programme“ (CSPP). Behind these are ultimately decisions by the ECB Governing Council to inject further liquidity into the market by purchasing assets such as bonds.

The abbreviated conclusion from the expansion of the money supply in the Eurozone would now be an analogous inflation. After all, more money with stagnating economic output suggests an increase in prices. But the inflation is not coming. Why is that?

The money is in the hoards

Economists like the former president of the Ifo Institute for Economic Research, Hans-Werner Sinn, don’t believe it. According to them, low inflation rates measured against the basket of goods give a false picture of the actual situation. In reality, Sinn said during his Christmas lecture, appropriately titled „Corona and the miraculous multiplication of money in Europe“, the ECB has fallen into the liquidity trap.

In a nutshell, this is a market economy situation in which low interest rates meet high savings balances. The large amount of money is not flowing into government bonds, but into consumers‘ savings accounts, as it is assumed that the economic situation will worsen and interest rates will soon rise again. In such a situation, monetary policy is ultimately ineffective.

In this context, one also speaks of „money hoards“, where all the money is kept.

Il s’agit du plus grand risque pour le marché de la cryptographie selon Pantera Capital CIO

Le trading à effet de levier est le plus grand risque pour le marché de la cryptographie en termes de ce qui pourrait faire apparaître «quelque chose sur toute la ligne», selon Joey Krug, co-chef des investissements (CIO) de la grande société d’investissement cryptographique américaine Pantera Capital . (Mis à jour à 19:20 UTC avec plus de commentaires par Joey Krug).

Il parlait hier lors de la conférence téléphonique de Pantera Capital

Selon Krug, certaines personnes deviennent complaisantes lorsqu’elles réalisent que la crypto est là pour rester. En conséquence, ils tirent leur épingle du jeu, pensant que cela ne peut pas baisser beaucoup parce que les institutions vont faire irruption et acheter, ce qui sauve la mise. Mais finalement, lorsque le couvercle se détache et que les offres ne sont pas là, les liquidations de positions achetées à effet de levier feront baisser le prix.

Lors du krach boursier des 10 et 11 janvier, plus de 3 milliards USD de positions longues ont été liquidées, selon les données de bybt.com. A titre de comparaison, le 12 janvier, plus de 200 millions USD de positions courtes et plus de 200 millions USD de positions longues ont été liquidées.

Il s’agit du plus grand risque pour le marché de la cryptographie selon Pantera Capital CIO 102

Comme indiqué , Willy Woo, chercheur et analyste en cryptographie, a fait valoir que „contrairement aux crashs précédents des 2 dernières années, où les marchés surendettés mènent à la liquidation des traders, celui-ci a commencé sur les marchés au comptant, puis a été considérablement amplifié par un seul échange en échec partiel, mais ne s’est pas éteint pour le bien de l’écosystème. “

Le trading avec effet de levier fait référence à l’emprunt de fonds afin que vous puissiez prendre une position plus importante que vous ne le seriez avec vos fonds existants afin que vous puissiez potentiellement générer un profit plus élevé. Cependant, si le trading sur marge permet aux traders d’amplifier leurs rendements, cela peut également entraîner une augmentation des pertes et des liquidations, raison pour laquelle les traders expérimentés ont tendance à conseiller aux nouveaux arrivants de rester à l’écart du trading à effet de levier.

Quant à Pantera Capital elle-même, la société a retiré un certain risque de la table lorsque le ratio de la valeur marchande sur la valeur réalisée (MVRV) a atteint son plus haut niveau depuis 2017 il y a quelques jours. L’indicateur montre combien de gains non réalisés les détenteurs de Bitcoin (BTC) sont assis. Lorsque cette mesure devient élevée, cela signifie que le marché est surchauffé, et s’il commence à décliner, les gens vendent afin de bloquer les gains par panique ou par peur, a expliqué Krug lors de l’appel.

Selon Krug, ce récent crash a été un résultat sain pour cet espace, notant que les gens ont réalisé des gains et que le marché a reculé un peu en période de consolidation.

XLM again in top 10 coins by market capitalization after 30 percent plus

Stellar Lumens has grown significantly after the Stellar Development Foundation signed an agreement with the Ukrainian government.

Stellar Lumens ( XLM ) is now the ninth largest cryptocurrency by market capitalization and has overtaken Chainlink (LINK) and Binance Coin ( BNB ), according to data from the major crypto-tracking website CoinGecko .

At press time, Stellar’s market cap is $ 6.6 billion

The market caps of LINK and BNB are $ 6.1 billion and $ 5.8 billion, respectively.

Stellar returns to the top 10 list amid XLM’s recent parabolic surge 80 percent in the past seven days, according to the Cointelegraph Stellar Price Index. At press time, XLM is $ 0.302, up 27 percent over the past 24 hours.

XLM also saw great growth over the past year.

According to data from CoinGecko, Stellar has achieved an increase of over 500 percent since the beginning of the year

As Cointelegraph previously reported, Stellar recently won the blockchain payment networks battle against Ripple due to a major shift in sentiment. Shortly before, on January 4, 2021, the Stellar Development Foundation had signed an agreement with the Ukrainian government to work together on a new digital asset ecosystem, including a digital central bank currency. The partnership immediately resulted in massive XLM growth, which resulted in a 30 percent daily gain on January 5th.

Despite the current rally, Stellar is still a long way from its all-time high of $ 0.78 on January 3, 2018.

Elon Musk, l’uomo più ricco del mondo

Elon Musk, l’uomo più ricco del mondo, vuole essere pagato in Bitcoin

Elon Musk, il miliardario fondatore di Tesla TSLA +7,8% e SpaceX e che è appena diventato l’uomo più ricco del mondo, ha detto che non avrebbe mai rifiutato di essere pagato nell’impennata del bitcoin criptovaluta.

Rispondendo a un tweet di Ben Mezrich, l’autore del film The Social Network scrittore di Bitcoin Billionaire, che diceva „Non rifiuterò mai più di essere pagato in bitcoin“, Musk ha risposto: „Nemmeno io“.
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Elon Musk, l’amministratore delegato miliardario di Tesla e SpaceX, noto per essere un fan del bitcoin, … [+] Getty Images

Musk, che nell’ultimo anno ha cavalcato l’impennata del prezzo delle azioni Tesla fino a raggiungere la vetta delle ricche liste mondiali, è noto per essere un fan del bitcoin, twittando regolarmente su di esso e su altre criptocurrenze (anche se spesso in modo ironico).

Con il prezzo del bitcoin che ha raggiunto livelli mai visti prima nell’ultimo mese, il bitcoin e le valute digitali simili sono tornate alla ribalta della coscienza globale per la prima volta dal boom del bitcoin del 2017 e dal successivo busto.

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Il valore del mercato combinato bitcoin e criptovaluta è ora salito a oltre 1 trilione di dollari. Il prezzo del bitcoin ha superato i 40.000 dollari per bitcoin questa settimana, con il valore totale della più grande crittovaluta del mondo che ha superato i 750 miliardi di dollari – e ha spinto il bitcoin in cima ai grafici dei più grandi asset globali.

Il prezzo del bitcoin, dopo aver sofferto per tre anni il mercato dell’orso, ha iniziato a rialzarsi in ottobre, irrompendo in un nuovo territorio il mese scorso come un’ondata di grandi investitori di nome bitcoin come potenziale copertura contro l’inflazione.
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Il prezzo del bitcoin è salito ben oltre il picco del 2017 di circa 20.000 dollari nell’ultimo mese, aiutato da … Moneta base

A dicembre, Musk ha scatenato la speculazione selvaggia che la sua azienda di auto elettriche potrebbe aggiungere bitcoin al suo bilancio durante uno scambio pubblico su Twitter.

Musk, rispondendo all’amministratore delegato di MicroStrategy MSTR -0,8% MSTR -0,8%, una società di business intelligence che ha attirato una notevole attenzione negli ultimi mesi acquistando oltre 1 miliardo di dollari di bitcoin, ha chiesto se fosse possibile convertire miliardi di dollari di Tesla in bitcoin.

Una settimana dopo, Musk, che vuole rendere una missione con equipaggio su Marte una realtà in pochi anni, ha twittato che una futura economia marziana potrebbe essere basata sulla crittovaluta, come il bitcoin.

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Bitcoin beats Warren Buffett’s Berkshire Hathaway for market capitalization

Bitcoin records a further increase in commercial activity as it approaches $30,000 and general interest increases.

Bitcoin (BTC) has recorded its highest trading volume since early 2018, as data points to more and more investors entering the market.

Figures from the chain analysis source Digital Assets Data highlight that in December 2020 the second highest transaction volumes of Bitcoin Pro have already taken place.

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BTC transaction volume records a record

With a total of $252.37 billion, the remaining 24 hours of December can take the count even further, as they rival December 2017.
Graph of Bitcoin transaction volume in a month.

Other indicators, such as the size of the unprocessed transactions in Bitcoin mempool and network transaction rates, also suggest an increase in overall activity.

As further reported by Cointelegraph, wallets containing both large and small balances also continue to increase to levels never before seen.

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For its part, Google Trends has captured the highest levels of search interest for the keyword „Bitcoin“ worldwide since February 2018.

Google’s search interest for the word „Bitcoin“.

The reason that is attracting the attention of the main sources, as well as experienced crypto traders, lies in the upward trend of prices that continues unabated this week. At press time, Bitcoin was challenging the $29,300 level amidst a persistent refusal to consolidate downwards.

On Dec. 30, the largest kryptonie surpassed Berkshire Hathaway’s market capitalization of $539 billion, the finance giant whose CEO, Warren Buffett, famously compared Bitcoin to „rat poison squared.

Ether continues to improve

However, despite its 290% performance so far this year, Bitcoin continues to pale in comparison to the performance of the higher Altcoin Ether (ETH). As confirmed by Digital Assets data, ETH/USD has sealed gains of nearly 500% since January 1st. Compared to the March lows, performance is even stronger.

Bitcoin vs. Ether performance chart so far this year.

In a series of Wednesday tweets, Bobby Ong, creator of the price data site Coingecko, gave his predictions for the crypto market in 2021. Among the main signals, Ether would record a return of the highest transaction rates, but would pass its current historical high from 2018.

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„ETH will surpass its $1,500 peak mainly driven by the DeFi sector. Gas rates will soar again and highlight scalability issues,“ he wrote.

„Most of the year will be spent coordinating a layer-2 scalability solution. My bet will be that ZK Rollup will gain traction by the end of the year.“

For Bitcoin, Ong predicted a price trajectory of about $100,000, along with the launch of a much-anticipated exchange-traded fund (ETF) and the first central bank adding Bitcoin to its balance sheet.