The Bitcoin has been the great beneficiary of the Federal Reserve (Fed). In the last 24 hours it rises 3% to reach the $23,700. Meanwhile Ethereum gains almost 6% and operates around US$1,674.
With a 39.4% gain this month, bitcoin closed January its best month since a 40% rally in October 2021. It was also the best January since 2013. In other words, the largest cryptocurrency had not given its forks such a bullish January in a decade.
“Bitcoin has benefited more than most from the increased optimism in the markets since the turn of the year,” said Craig Erlam, a market analyst at OANDA. “It’s more, has kept those gains in choppier trade quite impressively.” And yesterday’s Federal Reserve meeting not only did not change the outlook but seems to confirm it, given expectations that the end of the path of monetary tightening is near.
On Wednesday the Federal Reserve raised rates 25 basis points, as the market had taken for granted. Next, the president of the institution, Jerome Powell, offered a press conference in which he left several messages, but the main one that the markets seem to cling to is his affirmation that the disinflationary process of the economy has begun.
“Now we can say, I think for the first time, that the disinflationary process has started. We can see it and we really see it in the prices of goods so far,” the Fed chairman said. Of course, he added that it is premature to declare victory of inflation. In fact, the market expects at least two more rate hikes this year. In it rest of the cryptocurrencies there is also euphoria. The 14% advance of Polygon, BNB (7%) and Cardano (6%) stands out.
Still, many experts remain unclear on how long, if at all, this rebound can be sustained, while others are more optimistic. “Historically, when interest rates rise moderately, average returns and bitcoin rise massively, more than traditional assets, as speculators quickly buy back as credit and money become more available,” the expert concluded. by CoinDesk Jodie Gunzberg.
Bitcoin has been the great beneficiary of the Federal Reserve (Fed). In the last 24 hours it rises 3%
How many Argentines have ever bought cryptocurrencies?
17% of adults in Argentina have ever bought cryptocurrencies as a form of savings or investment, compared to 12% who had done so a year agoTherefore, it exceeds the use of this type of asset in other Latin American countries.
In total, between 15 and 18% of Latin American adults had bought cryptocurrencies by the end of 2022, a group in which Argentines stood out (17%) compared to smaller percentages of Colombians and Brazilians (14%), Mexicans (9%), Peruvians (7%) and Chileans (8%).
Among other data collected, it was discovered that more than a quarter of Latin Americans who buy cryptocurrencies do so weekly or monthly, and that 38% of Latin Americans who buy cryptocurrencies do so at least once a month.
Regarding the medium through which they do it, 79% of investors in Argentina access through cryptocurrency exchanges (platforms)while the rest (21%) did so via P2P transactions, that is, they bought them from another person with payments by transfer or in cash.
Almost 2 out of 10 Argentines (17%) have ever bought cryptocurrencies to save or invest.
Cryptocurrencies: for savings or investment?
According to the AMI study, 82% of people who bought cryptocurrencies in the region said they bought as an investment, although they also see cryptocurrencies as an alternative source of inflation protection (23%) and access to dollar-linked digital currency (32%).
53% of Argentines who declared having bought cryptocurrencies in the last year purchased stablecoins and 46% said they were looking to protect their savings against inflation.
The stablecoins can be invested in savings products based on decentralized finance (“DeFi”) protocols, which facilitate borrowing and lending through smart contracts on a blockchain, rather than through a financial institution.
It is important to clarify that, compared to bank deposits or in the capital market, stablecoins carry risks such as the lack of deposit guarantee insurance and the absence of regulation in most countries, which is read by many of those interested in entering this world as a fear of being scammed.
Regarding the uses of crypto, 23% of buyers said they have purchased an NFT (Non-Fungible Token), with Peru having the highest percentage of customers who have ever purchased (39%), and Argentina and Chile with the highest adoption rates lower (13% and 16%, respectively).
A similar situation is repeated when asked about their consumption of metaverse platforms, among which Peru stands out with the highest adoption rate, with 50% of consumers reporting that they use metaverse platforms, and the lowest in Argentina, with 15%.
