Positive inflation data from the USA only provide limited reassurance on the market!

Thought of the week

While inflation data was always an important event last year to assess the near-term trend of price movements, this effect is now clearly weakening. On the one hand, the Fed was able to halve inflation through strong interest rate hikes and thus lower the pressure; on the other hand, people get used to almost every circumstance, so that negative news does not cause a “shock”. So the topic of inflation and key interest rate hikes could be shelved in the near future and a new catalyst for the markets could come to the fore: The resilience of regional banks. These are currently suffering the most from the prevailing situation and are triggering unusual scepticism. This could be fundamentally positive for digital assets and blockchain technology.

Digital Asset News

Payments company PayPal recently disclosed its cryptocurrency holdings in a quarterly report to the US Securities and Exchange Commission (SEC).
With a total of 943 million US dollars in crypto-assets as of 31 March 2023, this document shows an increase of 56 percent compared to the previous quarter. At that time, PayPal reported $604 million in crypto assets. “We enable our customers in certain markets to buy, hold, sell, receive and send certain cryptocurrencies, as well as use the proceeds from the sale of cryptocurrencies to pay for purchases at checkout. These cryptocurrencies consist of Bitcoin, Ethereum, Bitcoin Cash and Litecoin.”
The adaptation of innovative companies is clearly shown by these increases.

Cryptocurrency trading platform Bittrex has filed for bankruptcy in Delaware.
In a May 8 filing with the US Bankruptcy Court in Delaware, Bittrex estimated in the bankruptcy proceeding that it has more than 100,000 creditors, $500 million to $1 billion in assets and $500 million to $1 billion in liabilities.
The insolvency affects Seattle-based Bittrex, Inc, two Bittrex companies in Malta and the related company Desolation Holdings LLC. Bittrex Global GmbH, the Liechtenstein-based global exchange company, is not affected by this filing.
The insolvency filing follows an indictment by the US Securities and Exchange Commission (SEC) against the company and its co-founder and former CEO William Shihara for securities law violations.
The SEC’s disproportionate action against digital asset companies in the US is thus increasingly leading to a withdrawal from the States and thus immensely strengthening Europe as a business location.

Public opinion of banks has worsened as a number of banks have gone bankrupt recently, according to an April poll.
An April Gallup poll in the United States of at least a thousand respondents found that 48 per cent said they were worried about their money in the bank. Almost 20 percent said they were “very worried”.
Gallup concluded that concern is as strong as it was during the last banking crisis in 2008, “when financial institutions previously believed to be ‘too big to fail’ collapsed”
“The latest readings are similar to those of 2008, in September of that year, shortly after the collapse of Lehman Brothers, which remains to this day the largest bankruptcy filing in US history.”
It cites a study published in April by Stanford University banking expert Amit Seru, which estimated that more than 2,315 US banks currently hold assets worth less than their liabilities.
“The market value of the assets of the US banking system is $2.2 trillion less than the book value of assets, which takes into account loan portfolios held to maturity,” he said.
Fundamentally negative sentiment towards traditional banks could be a catalyst for digital assets in the near term, fundamentally strengthening them.

Weekly overview

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