Crypto’s Delicate Position in China; Bitcoin, Ether Rise

The globe was still grappling with rising prices and bad news from Ukraine. However, bitcoin and ether had a lovely day on Wednesday.

After nearly two weeks of practically continuous falls, the largest cryptocurrency by market capitalization was recently trading at around $41,100, up over 2% in the last 24 hours. Ether, the second-largest cryptocurrency by market capitalization, was trading at over $3,100, up nearly the same amount over the same period. Other coins in the CoinDesk top 20 were all green, with AAVE, GRT, and AVAX gaining by more than 8% at times.

Crypto trading was low as investors digested the torrent of economic data and events that threaten to trigger a global recession.

Natural gas prices have hit a new high for the first time since 2008. Corn prices hit a ten-year high. Starting April 28, Amazon (AMZN) will impose a 5% fuel and inflation premium on independent sellers who use its packing and shipping services, a first for the online retail giant.

The fee is similar to what Walmart (WMT) and ride-sharing services Uber and Lyft have done in the past to help offset rising gas prices. Since the beginning of Russia’s assault on Ukraine, these prices have increased. They may continue to grow as countries supporting Ukraine’s defense seek to wean themselves off Russian energy supplies.

Following a visit to Ukraine, the chairpersons of three important German parliamentary committees urged the European Union to immediately prohibit Russian oil imports, despite the German government’s persistent opposition to such a ban due to fears of a recession. Brent crude oil, a widely followed indicator of energy costs, has risen to about $109 per barrel, up nearly 40%.

A delicate time for crypto in China and India

Despite its growing global appeal, Bitcoin remains in a precarious position in Asia’s two largest countries, which have played a critical role in the industry’s rapid expansion. China and India have tightened regulations in recent months, creating a new environment less conducive to digital assets. Their totalitarian governments despise crypto’s decentralized character, which takes no orders from anyone.

Consider the significant happenings of this week. Three major Chinese banking associations – the Internet Financial Association, the China Banking Association, and the China Securities Association – announced on Wednesday that they want to “resolutely curb” the trend of non-fungible tokens (NFT) turned into financial products. The news comes amid a year-long crackdown in China on bitcoin mining and trade.

China was the world’s leader in crypto mining, and its investors were among the most active. The crackdown resulted in an immediate dip in bitcoin price, which has since rebounded, and a reorganization of the mining business that is still ongoing. Despite China’s anti-crypto stance, large corporations and government agencies continue to issue NFTs. Ant Group and Tencent, two of China’s most prominent tech giants, rebranded their NFT items to “digital collectibles” in October, presumably disassociating themselves from the excitement around NFTs.

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