Bitcoin is trading steady at $20.7k at the time of writing, after another slow trading day. The largest cryptocurrency by market capitalization is struggling to drive a real positive price change as the market continues to deliver pessimistic results in the face of an impending financial recession. Altcoins were also broadly flat for the third day in a row. This kind of low volatility is rarely seen in the crypto market. This may indicate a new price drop. More on that later.
In other news, markets around the world continue to fall as economists and financial experts paint a gloomy picture of the future. Lately, many of them have expressed fears of an impending recession. Bank of America’s top economists recently stated that the US economy is likely to plunge into recession later this year. The rest of the world is expected to follow suit. More on that later.
Russian President Vladimir Putin has signed a new law banning the use of digital assets as a means of payment. The move comes despite the country’s recent attempts to fairly regulate the crypto sector, even using it to circumvent Western sanctions over its aggression against Ukraine. However, it is becoming increasingly clear that the Russian government itself is unsure of the crypto sector and wants to limit its use, at least internally. The move effectively makes crypto payments illegal in the country.
Bitcoin is now officially in its longest “extreme fear” phase ever. The cryptocurrency has one of the worst 2nd and 3rd quarters in its history, mostly dominated by a consistent price drop.
When it comes to using cryptocurrencies, Germany and the United States are leading according to the latest classification system implemented by a rating company. Previously, Germany was the biggest user with the most positive outlook, but now the US is up several points and joins the first at the top. The ranking was created by CoinCub. The Netherlands, on the other hand, is number 7, which is not a bad position either.
The European Central Bank (ECB) is again making short-term comparisons between the crypto sector and other industries. The bank was recently criticized for comparing Bitcoin and Proof of Work (PoW) systems to fossil fuels and Ethereum and other Proof of Stake (PoS) systems to electric vehicles, in a recent report. This is despite the fact that PoS systems have a lot to prove and even its pioneers face great difficulties in keeping them functional over time. Ethereum itself has not yet migrated to PoS and is in the middle of both processes, but it nevertheless suffers from significant problems, including a slow network.
The popularity of illegal crypto mixers is growing over time despite measures to counter their use. Mixers are illegal measures used to mix multiple transactions in an attempt to convert crypto from dubious sources to something legitimate.
A large number of players want to use crypto in the metaverse. According to a recent study by the firm Globant, gamers are one of the most pro-crypto groups out there and are likely to demand that crypto be included in tomorrow’s immersive environment.
Bitcoin price is stable at $20.8k
Bitcoin continues to trade sideways above $20.5k. The cryptocurrency is generally reporting very muted action as the market slows further.
The last 24 hours started with the Bitcoin price around $20.7k. It traded sideways for a long time and didn’t really go below $20.5k or above $21k. Just before the publication of this article, it moved up to $21k, but it lacks power in general.
Bitcoin has been in this tight trading range for 72 hours now. Judging by the outlook for the crypto sector and the markets in general, it may stay here for a while, breaking records for low volatility. However, most analysts believe that we have not yet seen the bottom. Price targets between $10k and $15k are currently being quoted.
Bitcoin’s total market capitalization was around $400 billion at the time of writing, and its share of the crypto market was 42.51%.
Altcoins remain stable
Other cryptocurrencies also remained largely flat throughout the day. Only Ethereum (ETH, 2%), Shiba Inu (SHIB, 2.2%) and Uniswap (UNI, 2.5%) showed increases above 2%. This is record low volatility for the larger altcoin market.
In other news…..
Bank of America predicts US recession later this year
Bank of America (BoA), one of the country’s leading private financial institutions, has announced that the United States will likely experience the beginning of an economic recession later this year. The bank repeated many recent predictions of a global recession in the near future.
The relatively good news, however, is that the recession is unlikely to reach the level of the 2008 crisis. It will probably be a fairly mild economic downturn. The bank has predicted a 40% chance of this recession occurring, which is a pretty high probability. Total US GDP is expected to decline by about 1.4% as a result.