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    More Stress For El Salvador As Bitcoin Dips To $29,000

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    More Stress For El Salvador As Bitcoin Dips To $29,000

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    El Salvador has been on the radar of leading financial and economic institutions since it made Bitcoin a legal tender. It has mainly become a spectacle as cryptocurrency supporters and non-supporters alike watch on to see how this plays out. El Salvador which had made good on its bitcoin promise had made multiple BTC purchases at close to the height of the market last year and some this year. The country now holds at least 2,300 BTC since it made its first purchase in September of 2021. Now that the price of Bitcoin is down significantly since the country had begun buying, how is this playing out for the North American country? El Salvador And Its Bitcoin El Salvador had bought another 500 BTC in May after the market had declined to $1.68 trillion. These bitcoins which were purchased at an average price of $30,774 had brought the country’s holdings to 2,301 BTC so far. It would be the lowest price that the country had been able to purchase the digital asset and given that this purchase was only a small part of its larger holdings, the country still remains in loss from its multiple purchases. Related Reading | Funding Rates Fall To Yearly Lows Following Bitcoin’s Fall Below $29,000 The first time El Salvador had bought some BTC in September, it had been trading above $44,000. What this means is that the digital asset is down about 45% since then. Its entire stash is now worth about $70 million at present prices. So even with the dollar cost averaging method that has seen the country buy BTC at different prices, it is still down 28% from its total purchase value. BTC falls to $28,000 | Source: BTCUSD on TradingView.com The move to accept BTC has not only proved controversial on just the bitcoin price side, but it has also affected the country’s ability to receive international aid in the form of loans. Last year, it was made public that the country had been looking to secure $1.3 billion from the IMF. However, this does not seem likely to happen given that the IMF has expressed its disdain for the adoption of bitcoin as a legal tender.  It has advised the country to remove the digital asset as an official national currency, citing that this could cause problems for the economy in the long-term, revealing that the current account deficit for El Salvador’s remittance and the external financing-reliant economy is estimated to drift around $2 billion for the next three years. But President Nayib Bukele has turned a deaf ear to this. Related Reading | Crypto Carnage Causes Flight To Bitcoin Safe Haven, Dominance Demonstrates El Salvador is a country that is heavily reliant on remittances from citizens abroad who send money home to loved ones. For this reason, the president has said that BTC will greatly help make these remittances easier and cheaper for its residents. On the price side, the president is not much bothered by the recent decline either. He has said in the past that he expects the price of the digital asset to reach $100,000 sometime in 2022. If this happens, then the country will be in significant profit from its BTC holdings. Featured image from Coingape, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… 

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    Bitcoin Price Analysis: BTC Price Strikes $30000; Breakout Or Fakeout?

    Analysis

    Bitcoin Price Analysis: BTC Price Strikes $30000; Breakout Or Fakeout?

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    The Bitcoin(BTC) price retest of the overhead resistance trendline teases a breakout entry for interested buyers. However, 50 EMA offering constant resistance to the price action may interrupt the potential rally.  Key points:  The BTC price consolidates rally over the last few days  The BTC price bullish breakout to overhead resistance The intraday trading volume

    The post Bitcoin Price Analysis: BTC Price Strikes $30000; Breakout Or Fakeout? appeared first on CoinGape.

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    GoPlus Security Raises Multi-Million Dollar Private Funding Round From Multiple Chain Entities

    2021

    GoPlus Security Raises Multi-Million Dollar Private Funding Round From Multiple Chain Entities

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    [PRESS RELEASE – Please Read Disclaimer] In April 2022 GoPlus Security Engine, a leading Web3 Security Infrastructure provider, raised a multi-million dollar private funding round. This round was co-invested by several public chain entities including Crypto.com Capital, Huobi incubator, KuCoin Ventures, Arweave, Harmony, Avatar (Avalanche Asia Star Fund), and Neo, with participation from numerous parties […]

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    IFDP Paper: Monetary Policy and Homeownership: Empirical Evidence, Theory, and Policy Implications

    Authority

    IFDP Paper: Monetary Policy and Homeownership: Empirical Evidence, Theory, and Policy Implications

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    Daniel A. Dias and Joao B. Duarte

    We show that monetary policy affects homeownership decisions and argue that this effect is an important and overlooked channel of monetary policy transmission. We first document that monetary policy shocks are a substantial driver of fluctuations in the U.S. homeownership rate and that monetary policy affects households’ housing tenure choices. We then develop and calibrate a two-agent New Keynesian model that can replicate the estimated transmission of monetary policy shocks to homeownership rates and housing rents. We find that the calibrated model provides an explanation to the “price puzzle” and delivers two important results with policy implications. First, the homeownership decision channel amplifies the redistributive effects of monetary policy, with contractionary shocks benefiting more outright homeowners and disadvantaging more renters and homeowners with a mortgage. Second, a monetary authority that reacts to a price index that includes housing rents generates excess house price, rents, and output volatility and larger real effects.

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