The divergence is being seized on by investors in search of big returns. Before the current bear market, Bitcoin and other cryptos were moving in lockstep with broader asset markets, but that correlation may be weakening. Ethereum was also trading at its highest price since the recent crypto market crash, signaling a shifting mood among investors after a near-three month bear cycle, although it has since eased to about US$1,639.Ĭrypto prices have been skittish recently.Bitcoin was changing hands for about US$23,000 as of mid-week Asia time. The altcoin rally followed Bitcoin’s rise to its highest price since June, at more than US$24,000, reversing losses chalked up since Celsius Network became the first of a number of major crypto firms to freeze user withdrawals and crypto hedge fund Three Arrows Capital’s insolvency issues came to light.dollar in May, unleashing a contagion effect that led to leading crypto firms halting user withdrawals and filing for bankruptcy. Filecoin’s resurgence was part of a broader rebound in the cryptocurrency market, which has been reeling since Terra’s algorithmic stablecoin UST lost its peg to the U.S.Filecoin led a group of cryptocurrencies that included Ethereum Classic and Bitcoin Gold in posting double-digit gains over the week. Filecoin’s impressive price rise came after Australia-based venture capital firm Holon Global partnered with cryptocurrency exchange Gemini last Friday to launch three crypto funds giving investors exposure to Bitcoin, Ethereum and Filecoin.The Monetary Authority of Singapore shows no sign of making a second course correction, but the fact that Chinese digital asset and Web3 firms are betting on the Lion City’s future in the industry shows that the sun is always shining somewhere, even in the depths of winter. Which brings us back to reversals: The Southeast Asian city-state has been much criticized by some in the crypto industry this year as its central bank has rolled back hopes that it might become a hub for retail activity in the sector. Nor has the possibility of more market turbulence scared off Chinese Web 3.0 companies as they quit their Covid lockdown-buffeted country for the greener pastures of Singapore. It’s betting that at least some of the people who have held their nerve and HODLed one of the sought-after NFTs despite months of declining market activity will be game enough to lay down 30 ETH (around US$48,500) to acquire one of these baubles. demonstrated earlier this week when it unveiled plans for a collection of 250 gemstone-studded pendants modeled on CryptoPunks non-fungible tokens. That hasn’t fazed some with a stake in the digital asset space, however, as upscale U.S. In truth, it’s a notoriously difficult call to make, and given the persistence of geopolitical and other risks that sent crypto and traditional equity markets alike reeling in the first place this year, we likely should brace for more volatility ahead. As the dramas around the recent bankruptcies of overleveraged crypto companies play out and investors lick their wounds, it’s not unreasonable to ask whether the market has hit bottom. Yet there’s a sense that the end of the deep freeze may be in sight. Alas, all the wishful thinking in the world won’t move the market, despite what some may tell you about the irrationality of certain asset prices. Crypto winter-weary digital asset investors might be forgiven the temptation to call a reversal of fortune as cryptocurrency values rose earlier this week.
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