The petrodollars’ days are numbered, and the “petroyuan ” could be about to take its place. Meanwhile, a newly created on-chain metric suggests bitcoin is in a period of major accumulation by long-term HODLers. Plus, the fight for bitcoin as legal tender may be getting a new champion, and a social media giant is incorporating NFTs. Also, with rising costs around the globe, guess who’s getting a raise?
All that, and more:
- BTC back above $40k.
- Bitcoin LTH deflation ratio.
- The death of the dollar.
- Market update (the calm before the storm).
- Newswatch: BTC champion, NFTs on a social media platform, petrodollar on the brink.
The big stories
- The petrodollar could be in danger, as Saudi Arabia is in supposed talks with China to price some of its oil sales to the country in yuan. According to ZeroHedge, Saudi Arabian officials are not pleased with the lack of support in the Yemen civil war from the US, and the Biden administration’s attempts to strike a nuclear deal with Iran.
The possible move away from the petrodollar could pose significant threats to the dollar as the world reserve currency, and adversely affect markets. The “petroyuan” could be about to make its presence felt on the world stage, which would mark a seismic shift in the geopolitical landscape.
This is after Jerome Powell stated there could be more than one reserve world currency in a senate hearing last week.
- According to David Puell of Ark Invest, bitcoin price proportional to long-term holder (LTH) supply sits at its most deflationary point in history. In simple terms, more bitcoins are being taken out of circulation than miners are releasing, at a rate of 7.4x daily issuance. A long-term holder constitutes an entity that holds longer than 155 days. And it appears they are accumulating at an astonishing rate.
Source: David Puell
- You couldn’t make this stuff up. The need for financial change is advertised everywhere you look. Congress just gave staff a 21% pay raise to accommodate for inflation they are partially responsible for unleashing.
Market update
Bitcoin (BTC) activity has dwindled in anticipation of the results of the Federal Reserve’s Fed Fund Meeting tomorrow. Bitcoin closed the US trading session down 0.99% to 39.2k. Don’t expect much action in bitcoin until the release of the rate hike and following the announcement tomorrow.
A few altcoins experienced gains last night, notably Fantom (FTM), The Graph (GRT), and Elrond (EGLD). Fantom spokesman, Harry Yeh, joined the show yesterday to clear the air on the project’s future after Andre Cronje’s departure.
| Protocol (Coin) | Price ($) | Gain |
| The Graph | 0.42 | 16% |
| Fantom (FTM) | 1.20 | 11% |
| Elrond (EGLD) | 156.33 | 09% |
| Basic Attention Token (BAT) | 0.79 | 09% |
| Lido DAO (LDO) | 2.67 | 16% |
| Tomb (TOMB) | 1.17 | 14% |
| Mirror Protocol (MIR) | 1.82 | 11% |
| Origin Protocol (OGN) | 0.46 | 10% |
| Dusk Network (DUSK) | 0.33 | 07% |
| Bitcoin Fear and Greed Index: | 24 Extreme Fear (+3) |
| “Crypto” Google Trends: | Not Operating |
| “Bitcoin” Google Trends: | Not Operating |
News Watch
- Cryptocurrency has entered the bloodstream of politics in recent months. The newest US senatorial candidate, Bryan Solstin, has stated his focus will be to make bitcoin legal tender in the United States if elected.
- The software company behind MetaMask, ConsenSys, has raised $450 million at a valuation of $7 billion, doubling its value since November 2021. According to documentation, the firm will convert the funds to Ethereum. SoftBank and Microsoft are among the new investors. Also noted on the announcement, MetaMask has 30 million monthly users. Source: ConsenSys
- Meta CEO, Mark Zuckerberg, announced that the firm is working on bringing NFTs to Instagram “in the near term” during a panel at Austin’s South by Southwest Festival (SXSW) yesterday.
- Kazakhstan has begun to crack down on illegal bitcoin farms which were initially banned in late January. According to officials, the farms were operating illegally and creating a strain on the power grids. The country is working on creating a regulatory framework for mining endeavors.
Other noteable events
- Bored Ape Yacht Club (BAYC) team, Yuga Labs, plans to sell virtual lands and drop an $Ape token.
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Banter’s take
The economic climate is bleak, inflation is on a 40-year high, and US government officials just got a 21% raise. Does that mean true inflation is 21%..?
The dollars’ role as the world reserve currency could be under threat, and global allegiances are shifting.
Everything suggests the world could be slowly reassembling itself before our very eyes.
In the short term, however, don’t forget to keep an eye on the Federal Open Market Committee (FOMC) meeting tomorrow: Today might just be the calm before the storm.
Thanks for reading!
Gabri
