Chart of the Day
Flipped. Not much of that TGIF feeling there, as Bitcoin struggles to test the $40k resistance going into the weekend. This, as investors began to react to the U.S. Federal Reserve’s sudden hawkish turn in scaling back bond purchases sooner than expected. However, some analysts believe that the downward trend across risky assets is merely a knee-jerk reaction.
On-chain data observe some interesting development as exchange net position flipped red. The 7-day net inflow reached a 20-month low, indicating that coins are moving off exchanges into wallets and private storage. Historically, extended periods of negative exchange inflow correspond to sustained rally. Let’s hope that this might be the glimmer of a bullish sign that we are looking for.
Talk of the Town
Reality Bites. As much as we are glad to witness history in the making, it might just take more than metanarrative and PR razzle-dazzle to rear a monument not built by human hands. Notwithstanding El Salvador’s zeal for embracing cryptocurrency, the World Bank has refused to assist in the country’s implementation of Bitcoin as legal tender, citing concerns about transparency and the usual environmental rhetoric.
The World Bank is not alone in pouring cold water on El Salvador’s path to Bitcoinization. Earlier this month, the International Monetary Fund (IMF) also expressed economic, financial, and legal concerns that warrant careful analysis.