Where will the bitcoin crash take us? | TechBuzz

- Advertisement -

Perceived as the most sulphurous financial asset on the planet, bitcoin is blushing in a climate of risk aversion, weighed down by crypto and macro storms. But collapsing to zero remains unrealistic.

He already did the trick to us last month. Almost day to day. Bitcoin had already fallen back to $25,000 and reignited the rumor mill. Doomsday crypto rumors for detractors. Rumors of techno progress, far from the stock market noise for the partisans.

- Advertisement -

Showing at the time of writing these lines a fall of 13% in 24 hours, the BTC takes with it the largest capitalizations: the solana (SOL) plummets by 20%, the ether (ETH) yields 17%, the cardano (ADA) gives up 15%, the binance coin (BNB) loses 14%… A rather symbolic disappointment since the financial weight of the crypto market is evolving below the threshold of 1,000 billion dollars, against three times more in November 2021. So be it.

Cryptos Follow Stock Tumble

Nothing suprising. Digital assets continue their ride in tandem with equities. The latter lost their balance when they saw US inflation data on Friday, at its highest level in 40 years. What weigh down a climate of risk aversion among investors, because these figures increase the likelihood of more muscular interventions by central banks on interest rates. Starting with the Fed this week.

Neither the stock market nor cryptos will appreciate a more sustained rise in key rates than expected. ” Markets always overreact », tempers pro trader Michaël van de Poppe, reminding us that emotional decision-making is never the right solution. Just like investing when everything is going crazy doesn’t seem wise.

- Advertisement -

It is also still possible that economic conditions evolve in such a way that the American central bank can take its time, confirm the strategists of Goldman Sachs. Taking care to anticipate a “ continued pressure on risky assets by then.

Internal problems and a crisis com

Serious headwinds are blowing from the outside on the crypto sphere, but the bitcoin ecosystem is also experiencing significant jolts internally. Starting with the whole Terra/UST earthquake last month. A new earthquake occurs precisely on Celsius. The staking platform (locked deposits to collect interest) and lending (lending and borrowing in cryptos), strongly affected by the collapse of the UST, has been claimed to be insolvent for several weeks.

But its CEL token collapsed (-52% over 24h) against the backdrop of a new crisis of confidence (a suspicious movement of hundreds of millions of dollars) which led to a liquidity crisis. ” Due to extreme market conditions, we are announcing today that Celsius is suspending all withdrawals, trades and transfers between accounts “, announced the fintech on Monday, ensuring to take these emergency measures to allow it ” to honor its obligations afterwards.

- Advertisement -

A crisis communication that contrasts with the words of the CEO of the American platform, Alex Mashinsky, who insisted on all the transparency that Celsius has always shown.

Useless clairvoyance exercise

Crypto experts even agree that, in a major cleanup, thousands of altcoins and tokens of all kinds will disappear, bitcoin will not fall back to zero anytime soon. Nobody knows when and at what level the bottom will be hit.

« Don’t ask. The worst times seem endless says Chris Burniske, founder of venture capital fund Placeholder. ” Things go so wrong so fast what [des planchers] will be seriously tested “, he underlines. According to him, ETH could likely test the psychological threshold of $1000 per unit. For bitcoin, given the clouds obscuring the horizon, it would be hard not to see it testing $20,000 or less. A relapse to its peak of 2017 having preceded the famous crypto winter.

Collapses in the crypto ecosystem are definitely a threat to consumer confidence in the short term and serve as a catalyst for a suspicious/defensive approach by lawmakers in the long term. But, faith of enthusiasts and crypto players, these “new” technologies will continue to drive responsible innovation. ” Fortunately, with blockchain transparency, we can learn from these incidents, provide education, and continue to build trust in cryptocurrency. “, we assure at Chainanalysis. the firm specializing in forensic investigations on the blockchain.

Source link

READ  BMW would use more efficient batteries than Tesla for its next 3 Series | TechBuzz
- Advertisement -
I am admin of techbuzz.asia blog & I provide tech-related news. As a part of my hobby, I make content related to technology and gadgets reviews too. I love to be a content creator apart from it, I am a full-time employee in an MNC company and manage blogs systematically. You can mail me at [email protected]

More from author

Related posts


Latest posts

Samsung presented the T7 Shield portable SSD | TechBuzz

Samsung's rugged portable solid-state drive features durability and fast, consistent performance for creative professionals and on-the-go users The external SSD-disk the size...

Star Wars Andor: the story of the series will span five years in two seasons | TechBuzz

The events of Star Wars Andor will catch up with those of Rogue One: A Star Wars Story. The prequel series of Rogue...

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!