Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
The crypto markets had started the week with a spring in their step.
Last Sunday, Elon Musk revealed that Tesla would be prepared to accept Bitcoin as a payment method again — once it could be proved that 50% of the energy used by miners comes from clean, renewable sources.
Traders reacted positively to the tweet, and there were green candles aplenty. Upbeat sentiment helped drive Bitcoin above $40,000 for the first time in over a fortnight. Unfortunately, though, it seems prices above this level were unsustainable.
A new wave of selling reared its ugly head days later after Federal Reserve chairman Jerome Powell suggested that interest rates may rise in 2023 — a year earlier than planned. Other officials went further, indicating the first increase could happen in late 2022.
Bitcoin wasn’t alone in suffering the sell-off. Stocks and gold also fell, eating away at the narrative that BTC is an uncorrelated asset.
With prices falling as low as $35,000, there are now fears that a “death cross” may be forming for Bitcoin. Some traders are forecasting that $32,500 could be the next stop before BTC revisits the swing low at $30,000.
As determined as El Salvador’s president may be to introduce Bitcoin as legal tender, a series of unfortunate events this week showed that it’s harder than it looks.
The World Bank has refused to assist the country in its transition, citing “the environmental and transparency shortcomings” associated with the digital asset.
Although prominent Bitcoiners weren’t pleased with the World Bank’s refusal, it’s fair to say that they weren’t surprised either.
One particularly sarcastic contribution came from Blockstream’s chief strategy officer Samson Mow, who tweeted: “BREAKING: WORLD BANK CANNOT HELP EL SALVADOR MAKE WORLD BANK OBSOLETE.” Miaow.
Elsewhere, an El Salvadorean minister denied reports that the country was examining the possibility of using Bitcoin for salary payments, warning such talk was “too premature.”
Economists have also been continuing to issue warnings about the potential ramifications of El Salvador’s move. Steve Hanke pulled no punches when he said going through with this law has the potential to “completely collapse” the country’s already fragile economy.
Striking a cheery note, he said the politicians who backed President Nayib Bukele’s Bitcoin Law were “stupid,” adding: “You’re not going to pay for your taxi ride with a Bitcoin. It’s ridiculous. […] 70% of the people in El Salvador don’t even have bank accounts.”
Billionaire crypto enthusiast Mark Cuban has called for stablecoins to be regulated after losing money in a dramatic “rug pull.”
Iron Finance fell victim to a “historical bank run” that detailed the price of the IRON stablecoin. Consequently, the value of its native token TITAN crashed by almost 100% over two days — from all-time highs of $64.04 to a mere fraction of one cent.
In an email sent to Bloomberg, Cuban wrote: “Even though I got rugged on this, it’s really on me for being lazy. The thing about DeFi plays like this is that it’s all about revenue and math and I was too lazy to do the math to determine what the key metrics were.”
Crypto Twitter, already reeling from the U-turn performed by Elon Musk, wasn’t a fan of Cuban’s remarks.
Kraken’s CEO Jesse Powell said a lack of regulation wasn’t the problem, tweeting: “Not doing your own research and YOLOing in to a terrible investment…