CoinLoan Weekly: Persistent red, UK stablecoin regulation, Emirates adopts BTC
Bitcoin had another rough week as it collapsed in the wake of UST’s unpegging. Following a brief rise above $32,000 on Tuesday, May 10, the price sank again. The bottom – $26,910.65 – was reached on Thursday, May 12.
The Fear & Greed Index fluctuated between 10 and 14 within the extreme fear zone. Thursday’s sell-offs erased $200 billion from the entire crypto market. Bitcoin tumbled down to its lowest level in 16 months, slipping to 39% of the all-time high.
As of now, BTC is trading at $29,685.10, with a 24-hour slip of -4.2% and a 7-day loss of -12.9%
For ETH, the 7-day losses came close to 20%. From over $2,400, its price tanked below $2,000 for the first time since June 2021. On Thursday, May 12, it plunged to $1,824.74.
Over the weekend, ETH stayed in a tight range, failing to reach $2,100. Like BTC, it is now at around 40% of the all-time high ($4,878.26).
As of this writing, ETH is trading at $2,019.50, with a 24-hour slip of -5% and a 7-day loss of -19.8%.
XRP’s downturn was the most dramatic – from $0.535224 on Tuesday, March 10, to $0.357045 on Thursday, March 12. Like BTC and ETH, the cryptocurrency was stuck in the red.
On Friday, May 13, XRP rallied to $0.439217 following the latest developments in the SEC’s lawsuit. Former SEC Corporate Finance director, William Hinman, ignited the case by stating that ETH is not a security.
As of now, XRP is trading at $0.425147, with a 24-hour dip of -2.9% and a 7-day plunge of -25.0%.
BTC’s unprecedented 7-week losing streak
On May 15, the weekly BTC/USD chart showed seven red candles in a row for the first time in history. The collapse of LUNA and UST sent shockwaves across the market. While its implications are not fully understood, the upended expectations are causing caution to linger on.
The Terra crash overshadowed other adverse factors – primarily, the downturn in the broader markets Bitcoin is correlated with. Over the past few months, it has moved in line with high-risk tech stocks.
The investor sentiment is still being affected by the Russia-Ukraine conflict, the growing inflation, and the Fed’s measures to mitigate it. These factors will apparently be broached at the World Economic Forum in El Salvador, which is scheduled to begin on May 22. Representatives from 44 countries – central banks and other financial authorities – will discuss the digital economy, financial inclusion, and the Bitcoin rollout in the country.
Despite the overall sentiment, the U.S. dollar index (DXY) is going strong. Another positive observation is that institutions are stepping up to buy BTC. Not only has the demand been relatively stable over the past year – these bids could mitigate the sell-offs triggered by Terra. Thus, it remains to be seen whether BTC’s fall will continue.
UK treasury determined to legalize stablecoins
According to The Telegraph, the UK Treasury is still willing to make stablecoins legal tender. According to the department, the corresponding regulation will be included in the legislation announced by Prince Charles. The Financial Services and Markets Bill aims to thwart illicit finance, fight economic crime, and foster business growth.
In view of the market meltdown, this decision has left some experts puzzled. As its spokesman has explained, Treasury is only considering 1:1 fully backed stablecoins, such as USDC and USDT. Meanwhile, UST shares “characteristics with unbacked cryptoassets” as it is tied to another cryptocurrency.
John Glen, Economic Secretary to the Treasury, tweeted, “The Bill builds on the Chancellor’s ambition for the UK to be at the forefront of technology and innovation, by supporting the safe adoption of certain cryptocurrencies for payments – sending a clear message to crypto firms that the UK is open for business.”
Emirates to allow Bitcoin payments
Emirates, the flag airline of the UAE, has announced that it will let clients pay with Bitcoin. What’s more, the Dubai-based company has plans to explore the metaverse and launch NFT collectibles as part of its foray into the crypto space. It may also implement blockchain technology to track aircraft records.
According to Emirates COO Adel Ahmed Al-Redha, the adoption of BTC stems from the desire to create new applications for monitoring client needs. “With the metaverse, you will be able to transform your whole processes – whether it is in operation, training, sales on the website, or complete experience – into a metaverse type application, but more importantly making it interactive,” he commented.
Emirates is not the first carrier to embrace crypto. In 2015, LOT Polish Airlines added BTC to its payment options. Yet the aviation industry on the whole has been hesitant to adopt it.