Bitcoin (BTC) continued to slip south over the weekend after uncertainties surrounding the stablecoin TerraUSD (UST), marking a new historical low of USD 32,064 on Monday, May 9th.

Reasons for Bitcoin price weakness

• In addition to the well-known reasons for the persistently strong US dollar and the simultaneous weakness of the US technology index Nasdaq , liquidity uncertainties in the Terra (LUNA) ecosystem in the meantime caused the rumor mill to seethe.
• Several factors caused the in-house TerraUSD (UST) stablecoin to be temporarily de-pegged over the weekend. TerraUSD lost its peg to the US Dollar for several hours.
• According to various tweets, there was a concerted sales cascade of the stablecoin UST.
• Users Mudit Gupta and Life in DeFi describe the start of the UST sell-off as a coordinated attack on the Terra ecosystem.
• Accordingly, 84 million US dollars of TerraUSD were dumped on the market to trigger panic among Luna investors.
• Although UST was able to recover shortly after the sell-off attempt and regain its peg to the US dollar, the interim devaluation led to a massive price slide for Terra (LUNA) to currently USD 59.80.
• The ninth-largest cryptocurrency is trading a good 25 percentage points below its closing price on Friday, May 6th.

Terra Labs countermeasures provide stabilization

• In order to stabilize the Terra ecosystem and slow down the ongoing sell-off of the last few days, the Luna Foundation Guard (LFG) claims to have lent Bitcoin and TerraUSD totaling 1.5 billion US dollars to an unknown marketmaker.
• Despite this stabilization measure, some users in the crypto community fear that the LFG could also part with its recently accumulated Bitcoin holdings.
• Quite a few investors attributed Bitcoin’s price slide in the last three trading days to the sell-off of TerraUSD and Luna.
• However, according to Terraform Labs founder Do Kwon , the $750 million in bitcoins were only lent out to restore liquidity and thus security to TerraUSD.
• The fact that the price of UST was able to quickly recover to 1 USD underlines the resilience of the Terra ecosystem.

Complex problems on the financial market as the reason for the sell-off

• Although the uncertainty about a lack of resilience in the Terra ecosystem may have increased the sell-off in Bitcoin, this factor is just one of many potential reasons for the current weakness of the crypto currency.
• Rather, it currently seems to be a mixture of political, economic and resulting uncertainties among investors, which is mainly responsible for the widespread sell-off on the global financial markets.
• As long as investors remain on the sidelines and no bullish countermovement is initiated by the bull camp, investors should keep their feet still for the time being.
• From the current perspective, a relapse to the historical lows of summer 2021 seems increasingly likely. Whether Bitcoin can stabilize around the psychologically important USD 30,000 mark should become clear in the coming trading days.
• However, since the summer months on the classic financial market are statistically weak stock market months, an expansion of the correction in the direction of USD 26,000 or even USD 20,000 cannot be ruled out.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

Bitcoin is bleeding as the Fed announces it will raise interest rates by a historic 0.5 percentage points. How far does the price fall?

The key monetary policy rate of the US Federal Reserve (Fed) has been between 0.75 and 1 percent since the middle of this week . The Fed is thus accelerating the deceleration of the economy and wants to get the galloping inflation under control. Most recently, the inflation rate in the land of unlimited price increases was a whopping 8.2 (!) percent.

Even Bitcoin did not come out unscathed from the monetary policy barrage of the central bank, which just missed its inflation target by 6.2 percentage points. The digital gold, which in view of the recent slide in prices is unfortunately not yet one, is getting a good beating with a daily minus of 9.2 percent.

Bitcoin

The reasons are quickly outlined. Tech stocks are considered growth stocks among investors. Investors especially flock to such risky assets when interest rates are low. After all, Apple , Amazon , Netflix and Co. need cheap credit to be able to finance their rapid growth. If money becomes more expensive, the prospects for growth and prices will fall. Since the interest rate hike, the Nasdaq 100 (NDX) has been down 5 percent.

Der Nasdaq 100 im Monatschart

Bitcoin and Nasdaq: Correlation at record levels

However, Bitcoin is not a stock. So what does the stock market sell-off have to do with bitcoin? Unfortunately quite a lot. Because Bitcoin also seems to flourish, especially in times of economic prosperity. The market currently does not rate BTC as what digital gold can be one day, but also sees the asset in the ranks of risk values. In other words, Bitcoin is trending more and more congruently with the stock market these days. Most recently, the correlation to the S&P500, the most important US stock index, was around 68 percent. For comparison: In January of this year, it was less than half as high at 32 percent.

There is no question: the recent slide in prices is severe. As Bitcoin Archive writes on Twitter, there has not been such a consistent downward trend since 2014.

#Bitcoin just had 5 down weeks in a row for the first time since 2014. pic.twitter.com/taGVCGDCYa— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 6, 2022

However, and this is the good news, Bitcoin Hodler seem to be less bothered by the current turmoil in the market. On the contrary: At 65 percent, the 1-year Hodl wave is at an all-time high.

Translated, this means that 65 percent of the coins have been held for at least a year.

Where is the journey going?

With a view to indicators such as the Mayer Multiple, which puts the current Bitcoin price in relation to the 200-day average, one has to say: There is still room for improvement.

The May multiple is currently 0.78. It’s definitely in bear market territory, but still off the bottom. For comparison: the Mayer multiple bottomed out at 0.71 recently.

There is joy when looking at the daily crypto charts: a large part of the market is reporting profits. These altcoins are the biggest winners.

It remains to be seen whether it was the interest rate hike announced by the US Federal Reserve or whether there is an entirely different reason for the positive mood on the crypto market. But one thing is for sure: Many investors should take a (small) load off their hearts when they look at their portfolio on May 5.

Bitcoin (BTC) is up almost 2 percent, while Ethereum (ETH) can report a gain of 3.2 percent daily. BNB can show 2.7 percent, while Cardano (ADA) is even benefiting in double digits with over 10 percent at the current hour.

However, the most significant outliers are other altcoins: Axie Infinity (AXS), Ethereum Classic (ETC), and Cosmos (ATOM) lead the ranking of daily winners among the top 100 cryptocurrencies.

Axie Infinity (AXS) price: blockchain game altcoin is catching up

Just yesterday, the token of the blockchain game The Sandbox (SAND) defies the market’s gloomy mood. Today, however, the price laurels belong to the competitor Axie Infinity, which is currently the daily crown with 14.19 percent. In comparison: SAND can show growth of more than 6 percent.

This allows the Metaverse game to recover a bit from the shock caused by the hack by the North Korean hacker group Lazarus, which stole over $600 million from the Axie network Ronin in late March.

Ethereum Classic (ETC) price: is the ETH hard fork making a comeback?

The Ethereum hard fork is currently reporting a price growth of 12.53 percent, increasing its market capitalization to $4.243 billion. ETC is currently trading at $31.44. This means that the altcoin is still a long way from the all-time high that Ethereum Classic set almost a year ago, on May 6, 2021, at $167.09.

Ethereum Classic, meanwhile, is a hard fork of Ethereum that was originally developed in response to a hack that obtained $50 million in ether from The DAO, an autonomous crowdfunding organization to launch open-source, decentralized business models Build base Ethereum.

Cosmos Hub (ATOM) course: Altcoin grows double digits.

The Cosmos network wants to ensure interoperability between blockchains with the platform’s own token ATOM. This is obviously going down well, as the altcoin is up 10.86 percent over the past 24 hours and is currently trading at $20.14.

In January of this year, Cosmos only hit its all-time high at $44.45. So there is still room for improvement.

Who doesn’t know it: The portfolio screams early retirement, but you don’t know exactly what to do with your Bitcoin millions. We have selected four paradises that would welcome you with open arms. You’re welcome.

Some BTC on the wallet, and you don’t know what to do with it (and with you)? We show you four heavenly places to sip your martini undisturbed and get your money’s worth with your crypto millions.

Cayman Islands: The Classic

Of course, the classic millionaire hotspot should not be missing in this Bitcoin ranking. Former Goldman Sachs hedge fund manager and founder of Real Vision, Raoul Pal, is not only a celebrity in the crypto space but is also one of just 65,000 people living on the archipelago in the Caribbean Sea.

The white beaches and the turquoise water are not only appealing to those who have millions in fiat money in their account: There should also be no corporate income tax for companies and no income tax or capital gains tax for residents on crypto.

Madeira: For those close to home

The newly christened Bitcoin Mecca Madeira is only a few hours’ flights away from Germany and thus offers those close to home the opportunity to fully savor their existence as crypto millionaires.

The autonomous region belongs to Portugal and is located off the northwest coast of Africa. Because its president, Miguel Albuquerque, only recently announced the favorable tax conditions for companies and crypto fans, the volcanic region should still be an insider tip for crypto emigrants. BTC transactions in the island paradise should be completely tax-free.

El Salvador: For Bitcoin maximalists

One can argue about Nayib Bukele’s Bitcoin plans for El Salvador. However, everyone agrees about the beach of El Zonte: palm trees, sea, and satoshis make a perfect mix.

The small Central American country is probably the natural paradise for the hardcore bitcoin fans among us. In September last year, El Salvador became the first country in the world to adopt the number 1 cryptocurrency as legal tender. So if you also want to pay with BTC at a local roadside fruit stand, you are probably in good hands there.

Satoshi Island: For Bitcoin innovators

The latest craze among bitcoin millionaires is likely to be Satoshi Island. The private island in the South Pacific attracts favorable tax conditions and the classic island feeling: white beaches, sunshine, and transparent water.

West of Fiji is the Vanuatu archipelago, home to Satoshi Island. With NFT land and some NFT citizenship, as well as modern homes and a focus on environmental protection, the South Seas island has a lot to offer, especially for fans of an innovative lifestyle. However, living out your life as a millionaire on Satoshi Island is not yet possible. The Bitcoin dream island is currently under construction and will only be available from 2023.

TrueUSD (TUSD), the first-ever stablecoin pegged to the U.S. Dollar that is audited in real-time, shares the details of its recent integrations with top-tier crypto-friendly banks.

TrueUSD (TUSD) integrated by five fintech heavyweights

In 2021-2022, TrueUSD (TUSD) has established itself as a reliable and secure asset for digital transactions; as such, its list of integrations has added new partnerships.

Since June 2021, the TrueUSD (TUSD) team has collaborated with Signature Bank, a New York-based full-service commercial bank. Namely, TUSD is added to SigNet, a native payments network launched by Signature Bank. It provides the technical basis for nearly-instant internal and cross-border transfers.

One of the first crypto-friendly banks, Silvergate, has also added TrueUSD to its payment mechanisms. Its Silvergate Exchange Network (SEN) leverages U.S.-pegged stablecoin for its online minting, redemption and settlement services.

U.S.-incorporated Prime Trust banking conglomerate added TrueUSD (TUSD) token to its PrimeX platform, while First Digital Trust, a private trust listing company, uses TUSD in its minting and redemption operations offered to retail clients.

APYs for TrueUSD (TUSD) products are increased on SunSwap and Beefy Finance

Last but not least, NYDFS-regulated digital banking giant BitGo – which is headquartered in Palo Alto, California – started offering custody services for TUSD, added the token to its multi-signature wallets and enabled seamless in-wallet TUSD purchasings. Those who are buying TUSD on BitGo are charged with zero fees.

Besides banking integrations, the TrueUSD team announced that APY rates on some staking products with TUSD accomplished two-digit levels. For instance, on Tron-based DeFi protocol SunSwap, the TUSD-TRX pool offers up to 12% in APY.

Beefy Finance, a decentralized yield optimization protocol on BNB Chain (formerly, Binance Smart Chain), offers up to 11.2% in APY for single-asset TUSD liquidity providers.

TrueUSD (TUSD) stablecoin is permanently audited by high-profile firm Armanino.

As such, its team promotes TUSD as the most transparent digital asset in the USD-pegged stablecoin segment.

The central African Republic and Panama adopt crypto rules. Germany is also demonstrating political will with Bitcoin and Co.

Treasury plans tax relief for stakes

On April 28, the FDP parliamentary group in the Bundestag was invited to its first blockchain roundtable. The liberal-led Federal Ministry of Finance (BMF) announced that the ten-year extension of the holding period would be abolished for cryptocurrencies used for staking and lending. If Bitcoin and Co. previously had to be held for ten years after staking for tax-free sale, this will be possible after one year. The BMF will soon formulate a corresponding guideline in a letter. The document, the draft of which is available to BTC-ECHO, is also interesting because it contains clear definitions for a number of basic crypto terms – a first for the German legal landscape. Participants in the roundtable also assured BTC-ECHO that the authority under Finance Minister Christian Lindner (FDP) is planning further adjustments to the crypto rules. In addition to FDP politicians, there was also a squad of crypto and blockchain experts at the meeting.

Central African Republic makes Bitcoin a means of payment

If the regulatory stone is slowly rolling in Germany, it has reached the foot of the mountain in the Central African Republic . Because according to ReutersPresident Faustin Archange Touadéra announced on April 27 that Bitcoin will be an officially recognized means of payment in his country. The National Assembly of the troubled state had previously unanimously passed a bill to regulate cryptocurrencies. The Central African Republic is the second country in the world that has decided to fully legalize Bitcoin and Co. Obed Namsio, the president’s chief of staff, told Reuters that the move will open his country to new opportunities. The other members of the Central African Economic and Monetary Union, a group of states with a common currency, to which the Central African Republic also belongs, reacted more skeptically. They were ignored in the decision.

Panama Passes Far-reaching Bitcoin Law

Last week it looked as if Panama could become the third country to make Bitcoin a state-approved means of payment. Although this hope has not been fully realized for constitutional reasons, a law that has been passed nevertheless provides for widespread legalization of crypto services. The regulatory package opens the gates of the Central American country to crypto service providers and crypto payments, citizens should be able to pay their taxes in Bitcoin and Co. Unlike in El Salvador, no obligation to accept cryptocurrencies is planned for payments. The proposed law also includes regulations for crypto trading, the issuance of digital securities and the tokenization of precious metals. Proponents argue that the law will benefit those previously excluded from Panama’s banking system. Critics counter that by taking this step, Panama is promoting its own reputation as a non-transparent tax haven. President Laurentino Cortizo has yet to sign the law

Study: Moderate BTC Adoption in El Salvador

While the Central African Republic and Panama followed in El Salvador’s footsteps, a study on the status of Bitcoin adoption in the pioneering state was published last week. The US National Bureau of Economic Research ( NBER ) paints a mixed picture. Data from the independent research organization shows that only half of those surveyed have installed the state-owned Chivo Wallet. The majority of the downloads took place at the launch, so the start-up capital of 30 US dollars promised at the time is conceivable as the most important motivator. More notably, the authors found no evidence that citizens with Chivo “make significant cross-border transfers”. The simplification of cross-border payments was a core argument for the Bitcoin adaptation. According to nber , the obligation to accept cryptocurrency No. 1 in retail also seems to remain largely unaffectedSalvadorans pay only 4.9 percent of their purchases in BTC. There is still a long way to go to the Bitcoin standard, but at least the first steps have been taken.

Texas city plans mining center

There are a large number of mining companies in the electricity paradise of Texas. But with Fort Worth, the first municipality in the USA is now also planning to start lucrative mining of BTC. The big city in the west of the Texan metropolis Dallas is putting three Bitmain Antminer S9s into operation in an air-conditioned part of the city hall. The modest start with just three devices identifies the initiative as a highly symbolic pilot project. It is estimated that one of the Antminers consumes as much energy as a household vacuum cleaner. The Texas Bitcoin Council donated the devices and Fort Worth cooperates with the mining pool Luxor Technologies . In a statement, Mayor Mattie Parker praised the economic opportunities of cryptocurrencies.

Casinos rarely miss new trends. The first online casino already existed in 1994. Now some casinos on the Internet also offer the opportunity to gamble with Bitcoin. But the short dream of money and the thrill of the crypto gambling house harbor dangers.

The pandemic, in particular, is causing casinos to move into the digital space increasingly. Google is now spewing out countless crypto gambling sites, all trying to lure in with similar perks: bonuses, free spins, and fast deposits and withdrawals without proof of identification. Is this the secret of quick money? Probably not.

No license to play

Due to their pseudonymous nature, cryptocurrencies offer more privacy than transactions with Visa and Co. Above all, and this cannot be reconciled with the State Treaty on Gambling introduced in 2021. Because in Germany, you can only operate your online casino with a license. All players are therefore subject to strict state supervision. If you want to enjoy a comprehensive gambling experience despite strict rules and use your cryptocurrencies for gambling, you would have to switch to a casino without a license.

These non-licensed providers bring an almost unrestricted gaming experience. Whether it’s blackjack, baccarat, jackpot games, or roulette, anything is possible in the Internet’s unlicensed casinos. However, you pay a big price for this freedom: security.

Fraudulent providers program games in such a way that the fun remains. However, the player usually does not notice that he is exposed to unfair practices and is sometimes ripped off. In the worst case, the dodgy providers cream deposited coins directly. It is almost impossible to prove the fraud and thus be correct since the deposit is made anonymously.

Is Crypto Trading Already Gambling?

Another problem is the high volatility, i.e., the enormous price fluctuations of cryptocurrencies. If you make profits in the casino, these are linked to the cryptocurrency’s exchange rate. Expected profits can quickly shrink rapidly. The volatile market makes gambling in the crypto casino even riskier. This exposes you to the classic risks of the crypto exchange and the additional disadvantages of gambling.

As with the crypto exchanges, quick profits are possible; but you can just as well put a lot of money in the sand. Many therapists already see trading in cryptocurrencies as gambling addiction, as symptoms similar to a classic casino or slot gambling addiction can occur:

• Sufferers constantly borrow money from family and friends, pawn their belongings, or steal to fund their addiction.
• They believe that they will soon make a big profit to make up for losses.
• Those affected experience mood swings, depression, irritability, restlessness, and hopelessness.
• They also deny the problem or lie to those around them.

In bad cases, the path to addiction leads to the dream of big money through occasional high profits. Fueled by the dopamine released during trading, the path can lead further to compulsive behavior, isolation, and ultimately classic addiction.

Different gaming behavior at crypto casinos

The digital world is increasingly changing player behavior. Ingo Fielder, the co-founder of the Blockchain Research Lab in Hamburg, has been researching his main topics for years: gambling and blockchain. The expert explained to BTC-ECHO:

Online gambling tends to be more addictive than physical gambling. There are various reasons for this. Above all, they usually run much faster than physical games of chance. Many offers in the online area also still take place in a legal gray area so that the regulatory requirements and thus player protection is less pronounced.

Ingo Fielder, Blockchain Research Lab

The choice of online casino payment method also affects player behavior, says Fielder:

The type of means of payment – chips, points, cash, electronic money, credit card, etc. – has been intensively examined in gambling research. The further away the payment method is from the feeling for cash, the lower the inhibition threshold and the more intensive the gaming behavior. The same has not yet been investigated for cryptocurrencies, but a similar effect can be expected.

Ingo Fiedler, Blockchain Research Lab

No proof of identification, no self-exclusion procedure

Age verification is simply impossible with crypto casinos as no personal information is required. In this way, the operators of these casinos make it possible for minors to participate in gambling, who are often even more susceptible to addiction.

Furthermore, casinos cannot use the voluntary self-exclusion procedure for problem gamblers suffering from an addiction. Addicts can withdraw from gambling entirely by applying to licensed and reputable providers. Applicants will be placed on a self-exclusion list of names. This effectively blocks you from all operators who have joined the self-exclusion program.

Here crypto casinos offer a loophole for gambling addicts: through the back door, excluded users can continue playing there unsupervised.

According to Reuters, a decision in the Twitter thriller is to be made today. Things are looking good for Musk. Dogecoin benefits from the rumours.

• The short message service Twitter is said to be about to be taken over by Elon Musk. The Wall Street Journal reported early in the morning that the deal might be a success.
• According to new reports from the Reuters news agency , the deal is now finally in the final phase. A decision could be made and announced as early as Monday, April 25, 2022.
• The sources also say: The deal can still burst.
• Musk is offering a total of $43 billion for the intelligence service.
• Elon Musk is considered a big advocate of Dogecoin. Since the rumors became known, the memecoin has risen by five percent, while almost the entire rest of the crypto market is in the red. If you want to buy Dogecoin, you can do so on the crypto exchange eToro .
• Dogecoin’s total market cap increased by $2 billion within an hour of the report’s publication.
• Twitter’s stock is also up 5 percent today.
• Among other things, Musk announced that Twitter would be delisted so that the social network could use its “full potential” as a platform for free speech.
• In the past, the self-proclaimed “DoGFather” repeatedly advertised shares or cryptocurrencies. The company was warned by the US Securities and Exchange Commission last year for tweets from Elon Musk’s account about Tesla shares