We have severe shocks in the cryptocurrency market and stocks are falling because US inflation is falling too slowly. As a result, Apple is no longer the world’s most valuable company. The government bravely finds solutions to the problems it once created, and the phenomenon of real wage growth is disappearing from the economic landscape. Here are five of the most interesting developments in the economy right now.
1. The earthquake in the cryptocurrency market
The world of cryptocurrencies is having a hard time all over the world. The price of bitcoin dropped overnight to its lowest level since December 2020 below 28,000. hole. Bitcoin has lost nearly 60% since the November peak ($ 68,991). its market value. Other major cryptocurrencies look similar.
The day before, the exchange rate of one of the largest so-called stable coins, i.e. cryptocurrencies, the value of which was always to be always the same as the US dollar, collapsed. Thanks to them, investors in the cryptocurrency market do not have to return to the real dollar after closing their investments but can keep their capital in something that mimics the dollar while still being part of the cryptocurrency market. At the beginning of the week, however, a large wave of supply “peeled” the Terra-USD stable coin rate from the dollar, so that its quotations fell to 62 cents on Tuesday, and below 30 cents on Thursday.
Anyway, no matter how much the Terra-USD now costs, this instrument has lost its meaning as it no longer costs as much as the dollar. Some investors perceive it as a collapse of a significant part of the architecture of the crypto world, hence a lot of nerves and the sale of the largest “ordinary” cryptocurrencies. Coinbase, the organizer of one of the cryptocurrency exchanges, also contributed to the deterioration of the situation, informing about the publication of the results that in the event of its bankruptcy, investors will not recover their cryptocurrencies.
Another issue is that in the previous months, cryptocurrencies have not been appreciated, and the turnover on them has gradually decreased. According to some economists, capital stopped flowing towards them, because in times of interest rate increases they definitely lost their attractiveness (similar to many companies on the Nasdaq stock market).