New collapse for bitcoin. The main cryptocurrency has returned to its lowest value in ten months, hitting high $ 32,500 after losing 5.5% of its value in the past 24 hours and the 16% in the last seven days. Similar drops have been registered across the cryptocurrency market, which has seen its market cap decline by 15% in the last seven days to 1.4 trillion dollars. A trend that once again seems to reflect that of the equity markets, especially that of technology stocks.
“Cryptocurrencies are high-risk investments and reflect the risks of investing in technology stocks, with even more obvious consequences,” he reasons Antonio Simeone, CEO of Euklid, an algotrading fund. “If the expansionary policy of central banks has contributed to the surge in stock markets, in particular in technology and even more so in cryptocurrencies, today the whole scenario changes with the squeeze. And it is even more evident on cryptocurrencies.bath those who compare them to gold. They are not a safe haven asset, but a risk asset like others, only even more risky “, she adds.
Cryptocurrencies
All the bitcoins in the world aren’t even worth $ 25, Buffett says
by Arcangelo Rociola
02 Maggio 2022
After a record 2021, 2022 starts in red for bitcoin
Bitcoin, as well as the main digital assets based on blockchain technology, have begun to follow the euphoria and fears of the Nasdaq since the first months of 2021.
Last year, in the midst of the boom in tech stocks, cryptocurrencies raised record investments, doubling their value compared to the previous year and coming to capitalize on the figure. record of 2.5 trillion dollars.
For analysts it is therefore no coincidence that today the strong volatility on the Nasdaqwhich has struck a series of negative sessions coming to lose the 14% compared to the beginning of the yearis also reflected in cryptocurrencies, which have set new negative records for a few weeks, with much more thunderous effects due to their nature as high-risk assets.
Digital
What is happening to the NFT market?
by Arcangelo Rociola
04 Maggio 2022
The Coinbase case
In recent weeks, the Fed is above all the link that connects the negative trend of the Nasdaq to that of cryptocurrencies. The US central bank has decided to go straight on raising interest rates despite the signs of weakness in the economy. Now discount the Nasdaq. Discount the cryptocurrencies. And the effect is even more evident on those securities that, listed on the Nasdaq, work with cryptocurrencies.
Over all Coinbase, cryptocurrency wallets that went public in April last year: “Today it’s worth less than it was before the IPO”, Simeone reasons. “It is a clear example of what is happening in the world of technology. In addition to monetary policy, the fact that the world is awakening after the pandemic is also important. The money that was previously invested, is now perhaps used for travel or for resume the life and habits of before “. Maybe just the beginning of an adjustment.