Hello there, I’m James, great to have your company on Kalkine TV and this is The Daily
Crypto Catch brought to you by Crossgate Capital. Let’s now catch up on the top three news
from the crypto space.
Bitcoin briefly climbed above $US44,000 for the first time in a week as the most US inflation
in four decades revives the debate about whether the cryptocurrency is a hedge against rising
consumer prices. The largest digital asset by market value rose as much as 3.3 per cent,
following the release of the consumer price index, which climbed 7 per cent in 2021. That
means inflation in the US registered its biggest annual gain since 1982. Some market participants
had speculated that the increase would be higher, helping to send other so-called risk
assets such as stock higher.
Near 7am AEDT, bitcoin was trading at $US43,768.14 on bitstamp.net.
Crypto assets are solidifying their place in the investment economy as greater adoption
among both retail and professional investors sees crypto move more in sync with stocks,
according to the International Monetary Fund. A Tuesday report from the IMF highlighted
the explosive growth of the crypto market over the past half-decade, with the market
value of crypto assets rising from A$859 billion in November 2017 to almost A$4.15 trillion
in November 2021. Of course, volatility has been a defining characteristic of cryptocurrencies,
with the combined value of the market sitting at around A$2.77 trillion this week — a
far cry below the November 2021 record, but still more-than-double its value in 2017.
Alongside its major growth, the crypto market is also beginning to show a greater correlation
with traditional investments. Looking at Bitcoin as an example, the IMF said the flagship crypto
asset did not move in any particular direction with the S&P 500 from 2017 to 2019, with a
correlation coefficient of daily moves of just 0.01. This correlation coefficient, however,
increase to 0.36 for 2020-2021 as movements in the crypto and financial markets were more
in tune with each other.
And now let’s take a short break and we’ll be back with news from Iran as
the country plans to allow cryptocurrencies for international trade. Stay tuned.
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Welcome back to Crypto Catch on Kalkine TV, brought to you by CrossGate Capital – let's
now take a look at news --- Iran plans to allow cryptocurrencies for international trade.
Amid rising popularity of cryptocurrencies, Iran is contemplating to finalise a scheme
that allows merchants to use digital currencies for international payments. The Central Bank
of Iran has reached an agreement with the Ministry of Trade to link its payment platform
to a trade system allowing businesses to pay using cryptocurrencies, according to Mehr
News Agency. Alireza Peyman-Pak, Iran’s deputy minister of Industry, Mine and Trade
and head of Iran’s Trade Promotion Organization said that the ministry was exploring to establish
a groundwork for the use of cryptocurrencies in international settlements. He also said
that the new payment mechanism is expected to be finalised “within the next two weeks.”
The minister said that Iran can’t ignore the benefits of blockchain technology. Iran’s
trade partners including Russia, China, India, and Southeast Asia, “using cryptocurrencies
is common”, he noted. Meanwhile, El Salvador last year became the first nation to recognise
Bitcoin as legal tender. The country believes that being the first to open its doors to
bitcoin completely will boost its economy. President Nayib Bukele feels that this would
inspire Bitcoin investors to invest more capital in his nation. He even intends to use the
energy from volcanoes to mine Bitcoin utilising El Salvador's state-run geothermal utility.
ANNNND that’s all today for Crypto Catch. Stay tuned to
Kalkine TV for the latest market updates, business news and exclusive interviews. I’m
James signing off for now.