The European Central Bank addressed Bitcoin in its latest Financial Stability Report. In particular, we learn that 10% of European households own Bitcoin and/or shit coins.
16,000 shit coins…
According to this survey, conducted in the six largest European economies, most owners consider them to be less than 5,000 euros. Nevertheless, 0.6% of all respondents still hold more than 30,000 euros.
Looking at responses by income, the ECB finds that respondents with the highest incomes are more likely to have it. On average, young male adults and those with a high level of education are the most engaged.
Furthermore, it is mainly those with the most and the least financial culture who own cryptocurrencies. The story doesn’t tell who buys more bitcoin or shit coins…
Note, however, that Fidelity, one of the largest mutual and retirement funds in the world, only invests in Bitcoin. Find the translation of his apology for maximalism here.
The ECB offers other interesting data, such as the fact that the total capitalization of the cryptocurrency market is 7 times higher than in 2020 after peaking at €2.5 trillion in late 2021.
“There are now more than 16,000 cryptocurrencies (about ten are created daily) but only 25 of thembetween them have a capitalization comparable to that of a multinational company share.it is written.
We can read further that “although bitcoin price volatility has decreased over the years, it remains significantly higher than that of silver and gold.” “But since the beginning of November, the value of bitcoin has fallen […]has been divided by more than two”.
For the ECB, this decline would be associated with it “Fed tightening and rising geopolitical tensions”. Which is obviously a web of lies.
BTC/USD gained 25% immediately after the invasion of Ukraine. Moreover, Christine Lagarde herself said that the tariff increase will not lower energy prices. But Bitcoin is designed precisely to be an anti-inflationary safe haven.
Rather, it is the implosion of stablecoin UST and its “algorithmic” Ponzi LUNA that needs to be pointed out.
In terms of volatility, who will complain about owning a currency that has appreciated 220% in the last two years? We hear less of the ECB talking about volatility meanwhile bull runs…
Other misleading statements refer to the “growing correlation of cryptocurrencies with large risky financial assets”. “Correlation to equities increased during (and after) the March 2020 market stress, as well as the December 2021 and May 2022 sell-offs.”
First, Bitcoin’s decline today is less pronounced than in the previous stock market crash in May 2020 (-80%). Second, correlation is not causation. And finally, yes, Bitcoin is volatile. Both down and up.
However, the ECB acknowledges this connection “could be due in part to increased institutional investor engagement”. Which is logical because the percentage of BTCs that haven’t changed in more than a year (that of holders) has never been higher (12 million BTCs). Could it be that Wall Street is speculating down to make this apparent correlation? Certainly.
The ECB also notes that volatility is amplified by the fact that the Exchange provide exceptional leverage. In particular, via financial derivative products (futures and options) used by Wall Street.
Some Exchange like Bitmex offers an insane leverage of 125:
The European MiCa law should address precisely these leverage effects, rather than sneakily trying to ban BTC self-holding. In fact, 1 BTC stopped at his wallet private, except Exchangeis by definition an unleveraged investment.
Let’s end with another clever statement from the Tartuffes from Frankfurt:
“If crypto assets currently make up less than 1% of the global financial system […]their size remains similar to that of, for example, the securitized risky real estate loans that triggered the subprime crisis in 2008″…
The ECB is trying to merge the brewing economic crisis with Bitcoin here. big joke Runaway inflation has nothing to do with bitcoin. It’s linked to peak oil, trillions printed by central banks, Chinese port closures under the guise of COVID, and NATO’s well-wanted war in Ukraine.
Bitcoin is the only way out of the debt money ponzi bursting for lack of sufficient energy to fuel growth. We now have a date with inflation and the bursting of stock market and real estate bubbles.
The masses will understand soon enough that Bitcoin is the best safe haven mankind has ever had. Even the president of the European Securities and Markets Authority acknowledged on Thursday that rising inflation could push Europeans to turn to bitcoin.
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Journalist reports on the Bitcoin revolution. My papers delve into bitcoin through geopolitical, economic, and libertarian prisms.
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