Currently, it is common to say how cryptocurrencies interfere in the global financial system. That is, the new thing affecting the old thing!
Considering that, in recent months, this market has strained on one side, in favor of cryptocurrencies and on the other, against the adoption of cryptocurrencies by several banks and financial institutions, it was to be expected that there would be no significant interference from the traditional market on the cryptosystem .
However, in this first week of August, many things happened that interfered, and a lot, the mood of investors - especially the biggest ones.
In the US, the Federal Reserve, the FED, continues to buy bonds from the central government's debt, which means that in the medium term, interest rates there will remain constant.
Thus, investors who were waiting for this, in order to exchange the bonds, ended up withdrawing part of the volume traded in bitcoin and returning to the bonds that remain in the market and which, now, have an appreciation of an average of 16%.
In Europe, the European Union is beginning to adopt the general regulatory system for all countries, which will determine, in a few months, the way in which cryptocurrencies and their mines will be able, formally, to operate in the EU.
As a result, ALTCOIN saw their values plummet, so investors could wait if they could actually trade cryptocurrencies on European stock exchanges in the form of investment funds.
Furthermore, large automotive companies - which are beginning to merge to reduce the damage caused by the pandemic - are beginning to dispose of part of the bitcoins purchased at the 2020 high.
In China, fear has three causes:
The poor performance of the Chinese economy, especially with many small Chinese investors selling their cryptocurrencies (the Chinese central bank gave until the end of August to cut off all transactions other than its own cryptocurrency!) and too many Western assets in the face of several international falls.
The Chinese government, this time targeting gaming sites and content developers related to games, which made tecent lose its value. A detail: to keep capital, TECENT sold part of its bitcoin stock as well.
The opaque regulation that is taking place in China, where primary rights are now state.
In Brazil, the increase in institutional crises and the increase in the dollar against the local currency made it more attractive to buy dollars than to keep cryptocurrencies, that is, people take their ether and bitcoin and convert it to dollars, as a way to earn more through volatility Brazilian.
In addition, Evergrande, the Chinese real estate conglomerate that dominates much of Asia, is forcibly regulated by the Chinese government: fears of a new real estate bubble would make China's trade balance unfeasible to sustain the Chinese economy. Part of the inputs comes from south america.
Soon, despite the resumption of bitcoin, traditional factors start to contaminate the recovery!
Meanwhile, in the world of Ethereum, Ether remains constant, as the volume of business that uses the platform starts to grow again at the levels before the pandemic.
Large European stores are beginning to sell products based on blockchain ethereum technology.
The deficiency of bitcoin, as an insertion in the commerce, is the strength of the ethereum.
In this way, the main cryptocurrencies balance, however, it is convenient to check the steps of the world's largest economies to see if the recovery will be sustained or will fall again.
Days to observe and learn!