What’s Happening in the Crypto Market
The current bitcoin price is holding steady at $30,000, while ether remains flat. Bybit’s Ether Chen predicts a potential market price recovery in the fourth quarter, with a full bull market anticipated in 2024. Tim Frost of Yield App dismisses a report that bitcoin will reach $120,000 by the end of next year but sees a bull market on the horizon for 2024.
Key Points:
- Bitcoin price remains stable at $30,000
- Ether shows no significant movement
- Predictions of a potential market recovery in Q4
- Dismissing a report of bitcoin reaching $120,000
- Anticipation of a bull market in 2024
The Impossibility of a CNY Stablecoin
Circle’s CEO Jeremy Allaire argues that a stablecoin pegged to the Chinese Yuan (CNY) would be a better option than a Central Bank Digital Currency (CBDC). However, the free convertibility of the yuan contradicts Beijing’s monetary policy. The People’s Bank of China (PBoC) maintains strict control over the exchange rate and restricts the use of the yuan offshore. Gita Gopinath of the IMF highlights that these traits are not indicative of a global currency. Both China and Taiwan have been accused of currency manipulation, indicating a reluctance to relinquish control.
Key Points:
- A stablecoin pegged to the Chinese Yuan is unlikely
- The yuan’s convertibility contradicts Beijing’s monetary policy
- China maintains strict control over its currency
- Taiwan also faces accusations of currency manipulation
- Both countries are reluctant to relinquish control
Hot Take: CNY Stablecoin Unlikely, Bull Market Anticipated in 2024
The current market conditions suggest that bitcoin is holding steady while ether remains stable. Despite predictions of a potential market recovery in the fourth quarter, it is unlikely that a stablecoin pegged to the Chinese Yuan will materialize. The strict control over the yuan’s convertibility goes against Beijing’s monetary policy. Additionally, both China and Taiwan have faced accusations of currency manipulation. However, a bull market is anticipated in 2024, paving the way for the next wave of crypto adoption.
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