The crypto industry has been unsettling for 2022. First, the harsh crypto winter has maintained an inevitable lull in the market for most of the year. Then, following this, the price for different crypto tokens and their movement has been stagnant.
Besides, the value of the crypto industry’s Gold and Silver (Bitcoin and Ethereum) has decreased recently. BTC and ETH are down by 72% from their previous high rates. Bitcoin’s (BTC) all-time high price was over a year ago, in November 2021, while Ethereum’s (ETH) all-time high price was $4,878.
Following the Merge event, the value of Ethereum has significantly decreased. After the event, the price of ETH decreased by 21%. Besides, following the crypto winter, many cryptocurrency specialists noted that stocks have also taken a beating, indicating that it’s not just crypto that has declined.
But ignore the price of BTC and ETH. There are several minor but significant movements in the industry that suggest otherwise.
Wonder why? Continue reading as we look at these indications of widespread acceptance to get a clearer sense of how cryptocurrency is faring.
Is Crypto Here To Stay?
The last few months have presented several instances of cryptocurrency being here to stay. Big financial institutions and internet companies have adopted the use of crypto tokens, developing a fair and wide range of features and functionality.
However, you would have a good reason to have missed these news reports as the world economy collapsed all around us. To expose its customers to the current Bitcoin price in August, BlackRock, the biggest asset manager in the world, developed a spot Bitcoin private trust.
He claimed that it is investigating stablecoins and tokenization and that its institutional clients are showing “significant interest” in cryptocurrencies. Wow. The fact that Bitcoin didn’t change in response to the news reveals how heavily the economy affects all assets.
There Were Two More Significant Acts Of Faith This Past Week.
Traditional banks are moving towards the next step of client relations as they seek a decentralized approach. For example, earlier this month, the 239-year-old Bank of New York Mellon also introduced crypto custody services for its customers. As per the latest updates, account holders with the bank will now have access to BTC and ETH via the institution.
The bank will store the private keys of its customers and provide accounting for their cryptocurrency holdings. Interestingly, this move comes after BNY Mellon was appointed as the custodian of cash reserves earlier this year in March.
Earlier this year, Google said it would begin taking cryptocurrency as payment because of its cloud services by integrating with Coinbase. Coinbase Commerce will transfer its “data-related apps” via Amazon Web Services to Google as part of the agreement. In addition to adopting cryptocurrency, Google Cloud also represents a partnership between Google and Coinbase.
Sneering crypto-skeptics may view all of this as a pitiful attempt at justification. Unfortunately, in situations like these, the Web 3.0 builders’ catchphrase, “bear markets are mostly for construction,” is repeated so frequently that it has lost all meaning. That doesn’t make it false, though.
Cryptocurrency has frozen thrice in the last ten years: in 2014, in 2018, and this year, in 2022. During such “winters,” some of the most well-known cryptocurrency businesses and platforms were created.
Cryptocurrency, according to Lubin, is currently “the tail having wagged by an extremely ill dog” and will not improve until the economy gets better. Anatoly Yakovenko, the inventor of Solana, predicts it may take 12 to 18 months. They are all still developing in the meantime as hints of potential adoption subtly increase.
The Current Global Events Affecting The Crypto Industry
While investors deal with high inflation, the situation in Ukraine, and changes in U.S. monetary policy, the cryptocurrency market, which recently has mirrored the stock markets, has become a victim of the industry-wide drop of risky assets. Despite not traditionally been connected with equities, the growth and collapse of the cryptocurrency and stock markets have been similar.
Besides, the month of June was quite busy for the crypto industry. Some firms announced layoffs and stopped withdrawals due to the challenging market conditions. Some others have even filed for bankruptcy to stop their losses.
Additionally, some insiders in the sector are making gloomy forecasts that the value of bitcoin and other cryptocurrencies may fall even further.
The most recent decline in the value of cryptocurrencies serves as a timely reminder to investors. However, digital trading assets involve more risk and volatility, particularly during increased political and economic unpredictability. As a result, experts advise avoiding making financial decisions based on sensationalism or fear connected to the news.
The following is how investors should interpret the most recent cryptocurrency news:
- The value of one of Elon Musk’s preferred cryptocurrencies is rising. Dogecoin has increased by around 15% over the past week, primarily due to the buzz surrounding its just-launched Blockchain, Dogecoin. To access various applications and NFTs, users can bridge the meme coin onto the network using this layer two partner Blockchain DOGE.
A wrapped variant of the coin known as DOGE is given to users who shift the meme currency to Dogecoin. However, experts have cautioned that meme currencies like Dogecoin are often useless and advise avoiding them.
- Genesis, a cryptocurrency brokerage, stated on Wednesday that CEO Michael Moro is resigning and that 20% of its 260 employees will lose their jobs. The most recent significant cryptocurrency corporation exhibits difficulty as the crypto market ebbs. Genesis revealed this month that the failure of Three Arrows Capital earlier in the summer resulted in losses for the company.
- This week, Galaxy Digital announced that it was canceling a $1.2 billion plan to buy cryptocurrency broker BitGo. The now-terminated agreement was declared the most prominent corporate purchase in the history of the cryptocurrency industry in May 2021.
Since BitGo failed to deliver audited financial reports for 2021, according to Galaxy, it has canceled the contract. As a result, the firing was “improper” by BitGo, which also stated that it intended to “hold Galaxy Digital legally liable.”
Why Shouldn’t You Pay Attention To BTC & ETH?
When considering investments in cryptocurrency, investors tend to start with Bitcoin and Ethereum, the two best-known cryptocurrencies currently available. However, even though both Ethereum and Bitcoin have reached fresh record highs, future volatility is still expected to be very high.
When you go past the fame, they both enjoy, Ethereum and Bitcoin also rank as the two biggest cryptocurrencies by market cap and exchange volume, yet they differ significantly. While both can be excellent options for crypto newbies, figuring out which is best for you could need a deeper look at your objectives.
However, the current market is divided into two categories of investors. One is in faith that the market is about to continue in rangebound, and the other expects breakout patterns in the coming months.
Which side are you on?