Crypto News
Hello all,
The European Central Bank is countering inflation by raising interest rates, thus catching up with other central banks:
The ECB Is Raising Interest Rates – What Does That Mean for Crypto?
For the first time in eleven years, the European Central Bank has raised interest rates to 0.5 %, thus reacting to the powerful inflation throughout the EU. This step had already been announced in June, although there had been indications in the past month that it would be capped at 0.25 %. With the raise, the ECB is now drawing level with other central banks. The US Federal Reserve had already announced interest rate hikes early on. The ECB’s hesitation is one of the reasons for the historic low of the euro compared to the US dollar. In other words, the central bank is under massive pressure.
The raise will take time to make its effect known since the measure presently does little to counteract the record inflation of currently 8.6 % in the euro zone. Nevertheless, the measure should have a short-term positive effect on the strength of the euro. That tendency could also serve to further stabilize the bitcoin price. In a press statement, Commerzbank even expects a gradual increase of deposit rates by 1.5 % by May 2023. In the meantime, the ECB’s scope of action remains fairly small. The central bank faces a quandary: On the one hand, it is tasked to fight inflation; on the other hand, adjusting interest rates must not trigger a recession.
Bitcoin Price Increase Leads to Resurgence of Entire Crypto Market
Over the last days of trading, Bitcoin has been recovering, in fact rocketing up to an enormous price increase. That caused investors to put more money into old coins. In particular, Ethereum has been able to benefit with increases sometimes reaching up to 28 %.
The positive development of Bitcoin and Ethereum prices has led to a significant recovery of prices on the remaining crypto market – for many of the Top 100 old coins even more than for Bitcoin. Accordingly, the Bitcoin dominance has slipped over the last seven days of trading by some five percent to 42.01 %. Some three quarters of the largest crypto currencies have shown a two-digit rise of prices for the last seven days of trading.
If this increase of Bitcoin and the old coins should prove to be sustainable, fresh impulses for the overall market are to be expected for the coming week. The price development on the crypto market though is influenced by relevant economic data on the conventional financial market.
Volkswagen Is Promoting Renewable Electricity for Electric Cars With a Crypto Project
Volkswagen released a press statement (https://medium.com/energy-web-insights/energy-web-and-volkswagen-deliver-24-7-renewable-energy-charging-solution-for-electric-vehicles-734132c5a737) saying that they have developed an innovative charging station for electric cars together with the Energy Web Foundation. Owners of electric vehicles thus can get their power from specific power plants and for the first time coordinate the charging processes in real time with the production of renewable energies.
“The solution allows users to determine date and time of the charging process, the desired charge level after charging as well as the type of power procured from renewable energy sources,” according to the statement.
Headquartered in Berlin and operating globally, the Energy Web Foundation is one of the most important actors pushing forward renewable energies via blockchain solutions.
We’re expecting markets to continue to rise in the coming weeks and will inform you about the most important topics in our newsletter.
Your Castello Coin Team