This Friday (22), without losing the 10% increase achieved in a week, Bitcoin (BTC) corrected almost 3% of its price in one day, trading now at US$ 63,600, according to CoinGoLive.
This drop did not affect the optimism of investors in Bitcoin, but due to the recent departures of Paulo Guedes’ team at the Ministry of Economy, the national market retreated a little.
The altcoin that was not intimidated by the fall was Solana (SOL) which from yesterday to today rose 6.16%, continuing its upward trajectory of 35% in one week.
Bitcoin investor is optimistic
News that the US will finally have its own Bitcoin ETF, even if it’s one of Futures, for now, brought significant gains for the primary cryptocurrency this week. When the first reports surfaced, the BTC quickly soared above $60,000.
After this peak, however, the bears attacked again and pushed the asset to the south – the blow was so strong that in some exchanges the price reached four digits. The event was called a flash crash.
Corrections of this type occur, because as the on-chain analyst Glassnode explains: “As the market moves towards ATH and investors have bigger and bigger unrealized profits, the incentive to sell also grows”.
It’s easy to see this on the chart, where it appears that 98.34% of currencies are now held with unrealized profits. Most are from long-term investors (LTH) – or rather, “diamond hands”.
As of now, the BTC has recovered some land and is above $63,000. The strength of bullish indicators for the currency can also be translated into investor sentiment now, which is quite optimistic according to the Fear&Greed index.
Its market capitalization is around $1.2 trillion, while its dominance over altcoins is 44%.
While the cryptocurrency investor is quite optimistic, the local economic scenario is a little different.
Disband of the economic team
The level of mistrust with the direction of public accounts reached new peaks yesterday and hit domestic assets hard. The recent movements around the creation of Auxílio Brasil were understood by national investors as a breach of the fiscal regime, which removed the parameter of asset prices.
With the demand for much higher risk premiums, future interest rates soared, the dollar went to R$ 5.66 and the Ibovespa fell close to 105 thousand points in the lows of the day.
The investor’s distrust is rational, since, before the spending ceiling was breached, 3 secretaries from the Ministry of Economy and 2 more assistants from Guedes asked to leave. The stampede takes place on the same day that the rapporteur of the PEC dos Precatórios, Hugo Motta, accepted the government’s request to change the fiscal rule.
The maneuver will help make room for another R$83 billion in the Budget. In this way, the amount would be used to fatten up the Auxílio Brasil program – a replacement for Bolsa Família – in order to pave the way for the electoral process for the reelection of the president.
In the Chamber, the text has already passed through the CCJ and, now, through the special commission. The text must now go through two votes in plenary. According to the president of the Legislative House, Arthur Lira, “the environment is favorable to approval.”
For the approval of a PEC, at least 308 votes are needed in the Chamber of Deputies and 49 in the Senate, in two rounds.
Since yesterday, altcoins are not making very significant gains. Ethereum (ETH) even came close to a new ATH, but now it’s trading at just over $4,130.
In contrast, Solana (SOL) was highlighted again with an increase of 6.39% in one day and more than 30% in the last week. Yesterday it stole Ripple’s place in CoinGoLive’s cryptocurrency rankings.
The result of the main altcoins in the last 24 hours is as follows: Ethereum (-4.24%), Binance Coin (-0.18%), Cardano (-3.54%), Solana (+6.39%), Ripple (-4.07%), Polkadot (+1.83%), Dogecoin (-3.31%), Earth (+7.13%), Avalanche (+2.45%), Shiba Inu (-0 .15%) and Wrapped Bitcoin (-3.21%).
The cumulative market capitalization of all cryptocurrencies was close to $2.7 trillion.
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