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AS CRYPTO’S DOWNTURN INVESTORS IN DIGI COINS ARE SELLING OFF THEIR TOKENS AND BUYING BITCOIN

AS CRYPTO’S DOWNTURN INVESTORS IN DIGI COINS ARE SELLING OFF THEIR TOKENS AND BUYING BITCOIN 

It currently trades more than $ 31,200, up more than 4% on the last day, Bitcoin, the world's largest cryptocurrency in terms of market value now makes up 47.3% of the crypto market total, according to TradingView. Bitcoin has never played such a significant role in investor portfolios since July 30, 2021, when assets were sold for more than $ 42,000.


The rising value compared to the total value of the crypto market suggests that investors are looking for a secure investment in the downturn, with Gemini co-founder Tyler and Cameron Winklevoss looking for a "crypto winter."


"Bitcoin is probably the most dynamic asset in history," Andy Edstrom, managing director of advisory services at Swan Bitcoin, a bitcoin trading platform, told Yahoo Finance. "But the fact is that its instability has declined over the years."


Created during the 2007-2009 Financial Crisis, bitcoin proponents initially viewed it as an electronic currency without government financial control. During those early days even now, lawyers have changed their minds, often likening it to “digital gold,” as Edstrom points out.


Although volatility has proven to be one of its key features, data from Coin Metrics shows the volatility of whipsaw bitcoin has declined over time.


Since December, BTC has come a long way in closing the stock market, especially high-tech stocks. Following the crypto market sales in early May, when the algorithmic stablecoin TerraUSD collapsed, the relationship between bitcoin and the S&P 500 saw a sharp decline, although it remains at higher levels than at any other time in 2021.


Rising from 54% since its November 2021 high of $ 68,789, the stock did 9% worse than Meta ($ FB) but held 16% better than Netflix ($ NFLX) at the time. However, over the past two years, its value has risen 233% from $ 9,300 per coin, beating all major tech-cap stocks except Tesla.



However, bitcoin remains "strongly influenced by the macroeconomic environment," Tom Dunleavy, chief research analyst with Messari, told Yahoo Finance, largely due to the current financial consolidation cycle. Such relationships have kept retailers and investors focused on U.S. economic events. when considering the immediate conditions of trade in goods.


Possible control is also key, according to Dunleavy awaiting the release of a bill for a bipartisan crypto regulation bill from Sens. Lummis (R-WY) and Gillibrand (D-NY), which could arrive on Tuesday.


As Bank of America CEO Brian T. Moniyhan previously told Yahoo Finance, major financial institutions are heavily regulated, which prevents them from making significant moves in Bitcoin or other crypto assets. Further clarification of the law could change their position.


After seeing a rise in consumer demand and trading volumes on Monday morning, Mark Newton, a technical analyst with Fundstrat raised a research note that bitcoin may already be gaining ground near it, though tightening monitors will keep investors cautious.


After nine consecutive weeks of negative performance, Newton said the bitcoin price could reach between $ 37,000 and $ 39,700 this month "before showing some consolidation by the end of June."


But with recent job cuts in Coinbase, Gemini and Robinhood - major crypto trading centers that plan to cut back on almost 10% of their workforce - the digital commodity industry seems to be heading for a daunting "crypto winter".


"It's too early to drive" even if the crypto will be silenced in the next few months, says Swan's Edstrom, or "a decline for many years."

Source: yahoo




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