As stocks plummet and inflation surges, cryptocurrencies appear to be following suit.<\/p>\n
In the past six months, Bitcoin, the largest cryptocurrency by market capitalization, has lost about half of its value.<\/p>\n
Currently, Bitcoin is selling at an average price of $29,700, and Glassnode has recorded an outflow of almost $1.3 billion, with a net discharge of nearly $700 million.<\/p>\n
Ether, the second-largest cryptocurrency, has lost more than 55 percent of its value. This does not even begin to address the TerraUSD scandal and its repercussions.<\/p>\n
Suggested Reading | Cardano TVL Sheds $205 Million Since Hitting All-Time High<\/p>\n
In the past week, crypto fund assets under management (AUM) reached their lowest level since July 2021.<\/p>\n
This was a result of the current price drop in cryptocurrencies and equity markets, which has been partially driven by the U.S. Federal Reserve\u2019s decision to begin reducing its balance sheet this month.<\/p>\n
Bitcoin At An Inflection Point<\/p>\n
A senior market expert at Bloomberg Intelligence has cautioned that Bitcoin is at a so-called \u201cinflection point,\u201d which indicates that the cryptocurrency is positioned on a curve where it may rise or fall.<\/p>\n
A portion of the uncertainty leading investors to shun risky assets like cryptocurrencies is undoubtedly attributable to rising interest rates.<\/p>\n
With rising interest rates, tech stocks and cryptocurrencies have been severely impacted.<\/p>\n
According to Yash Patel, a general partner at Telstra Ventures that invests in crypto businesses, larger institutional players have expanded their trading activity in cryptocurrencies over the past several years.<\/p>\n
As interest rates rise, borrowing money to undertake these transactions becomes less desirable.<\/p>\n
Currently, cryptocurrency is tied to the markets, which many think is not good for investors in the near term.<\/p>\n\n
BTC total market cap at $565.76 billion on the weekend chart | Source: TradingView.com
\n\u2018Very Poor\u2019 Expectations For Crypto<\/p>\n
Joseph Edwards, the head of financial strategy at the investment management company Solrise Finance, stated that he has \u201cvery poor\u201d expectations for Bitcoin and cryptocurrencies in general.<\/p>\n
\u201cThere\u2019s not much fresh funding flowing into the markets, which is always a prerequisite for market expansion,\u201d he said.<\/p>\n
For her part, the vice chair of the Federal Reserve, Lael Brainard, notes that the market may finally consolidate and decline, which might result in a price retreat\u00a0of $22,000 to $24,000 for Bitcoin.<\/p>\n
Bear Market Here For A While<\/p>\n
Brianard noted that the Bitcoin price may loiter near the price support zone before dropping, indicating that the downward trend may continue.<\/p>\n
Meanwhile, blockchain and cryptocurrency industry insiders told CNBC that the latest drop in the digital coin market could help eliminate \u201cbad actors\u201d from the market.<\/p>\n
\u201cWe are experiencing a bear market,\u201d\u00a0Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland.<\/p>\n
\u201cI think that\u2019s a good thing, because it will clear the people who were there for the wrong reasons,\u201d he said.<\/p>\n
Suggested Reading | Bored Ape Yacht Club Plunges By 60% Last Month<\/p>\n
Featured image from Cointribune, chart from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
As stocks plummet and inflation surges, cryptocurrencies appear to be following suit.<\/p>\n
In the past six months, Bitcoin, the largest cryptocurrency by market capitalization, has lost about half of its value.<\/p>\n
Currently, Bitcoin is selling at an average price of $29,700, and Glassnode has recorded an outflow of almost $1.3 billion, with a net discharge of nearly $700 million.<\/p>\n
Ether, the second-largest cryptocurrency, has lost more than 55 percent of its value. This does not even begin to address the TerraUSD scandal and its repercussions.<\/p>\n
Suggested Reading | Cardano TVL Sheds $205 Million Since Hitting All-Time High<\/p>\n
In the past week, crypto fund assets under management (AUM) reached their lowest level since July 2021.<\/p>\n
This was a result of the current price drop in cryptocurrencies and equity markets, which has been partially driven by the U.S. Federal Reserve\u2019s decision to begin reducing its balance sheet this month.<\/p>\n
Bitcoin At An Inflection Point<\/p>\n
A senior market expert at Bloomberg Intelligence has cautioned that Bitcoin is at a so-called \u201cinflection point,\u201d which indicates that the cryptocurrency is positioned on a curve where it may rise or fall.<\/p>\n
A portion of the uncertainty leading investors to shun risky assets like cryptocurrencies is undoubtedly attributable to rising interest rates.<\/p>\n
With rising interest rates, tech stocks and cryptocurrencies have been severely impacted.<\/p>\n
According to Yash Patel, a general partner at Telstra Ventures that invests in crypto businesses, larger institutional players have expanded their trading activity in cryptocurrencies over the past several years.<\/p>\n
As interest rates rise, borrowing money to undertake these transactions becomes less desirable.<\/p>\n
Currently, cryptocurrency is tied to the markets, which many think is not good for investors in the near term.<\/p>\n
BTC total market cap at $565.76 billion on the weekend chart | Source: TradingView.com
\n\u2018Very Poor\u2019 Expectations For Crypto<\/p>\n
Joseph Edwards, the head of financial strategy at the investment management company Solrise Finance, stated that he has \u201cvery poor\u201d expectations for Bitcoin and cryptocurrencies in general.<\/p>\n
\u201cThere\u2019s not much fresh funding flowing into the markets, which is always a prerequisite for market expansion,\u201d he said.<\/p>\n
For her part, the vice chair of the Federal Reserve, Lael Brainard, notes that the market may finally consolidate and decline, which might result in a price retreat\u00a0of $22,000 to $24,000 for Bitcoin.<\/p>\n
Bear Market Here For A While<\/p>\n
Brianard noted that the Bitcoin price may loiter near the price support zone before dropping, indicating that the downward trend may continue.<\/p>\n
Meanwhile, blockchain and cryptocurrency industry insiders told CNBC that the latest drop in the digital coin market could help eliminate \u201cbad actors\u201d from the market.<\/p>\n
\u201cWe are experiencing a bear market,\u201d\u00a0Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland.<\/p>\n
\u201cI think that\u2019s a good thing, because it will clear the people who were there for the wrong reasons,\u201d he said.<\/p>\n
Suggested Reading | Bored Ape Yacht Club Plunges By 60% Last Month<\/p>\n
Featured image from Cointribune, chart from TradingView.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-593","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=593"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/593\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=593"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}