Figures like Peter Andersen and Mike McGlone agree around this thesis, although there is disagreement on what exactly this would represent for the crypto market an area or arena, online or offline, in which commercial dealings are conducted. Is it loss or consolidation of the sector?
After the drop seen throughout the month of January and this particularly steep decline that we had today, January 21, several experts believe that the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market could be facing a major correction, so forecasts may not be so optimistic for the coming days.
Correction a correction is a pullback of an asset’s price of at least 10% to adjust for over-valuation. in the crypto market?
As to the reasons for this fall in the cryptomarket, the chief information officer for Andersen Capital capital is most commonly defined as the large sum of money you would use to invest. Management, Peter Andersen, made special mention of the changes that will be implemented by the US Federal Reserve (FED) This year’s report will be a good example of how the United States has been responding to the pandemic by COVID-19, and the repercussions this would have on the price of the main market players.
In this regard, Andersen highlighted the drop seen in the market capitalization of cryptocurrencies and the reduction recorded by the price of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. y Ethereum a decentralized open-source blockchain with smart contracts functionality. today, all this while the FED considers a possible revision to the idea of a digital dollar (CBDC). According to the analyst, this could lead to a major correction in the cryptomarket:
“I think cryptocurrencies are headed for a major correction. I don’t know when, but almost no one understands the math behind it… You ask most of the leaders who boast that cryptocurrencies are the next best investment option. If you ask more details about that, they really stumble in terms of trying to tell you what the fair value is. Because this one is totally different, if I dare say, it depends on the asset class. We need a lot more work on that and a lot more information available for analysis.”
While Andersen is pessimistic about the market’s reaction to the US outlook, senior commodities analyst for Bloomberg, Mike McGlone, does not deny the bad effects but pointed out that the volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. seen in the price of these assets so far in 2022 is an interesting indicator, which highlights the importance of Bitcoin within the current revolution generated by digital currencies.
In McGlone’s opinion, the volatility of the Bitcoin y Ethereum also bring to the table the importance of these cryptocurrencies in US dollar (USD)-based transactions, a key indicator for assessing the growth of the industry:
“Some purges in cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. excesses in early 2022 show the fundamentals of the three stalwarts – Bitcoin, Ethereum and the proliferation of cryptocurrencies. The nascent dollar transaction technology is an important part of the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset revolution.”
Put more simply, the volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of trades flowing through the markets of Bitcoin y Ethereum The growth in the sector’s economy, especially in terms of the use of cryptocurrencies, is evident.
It’s not just the crypto sector that’s faltering
Although the most visible for those who make a living within this ecosystem is much more evident the impact on cryptocurrencies, the truth is that several companies both inside and outside the digital currencies sector are also being affected.
In the case of the companies that work in this sector, entities such as Microstrategy y PayPal are also capitalizing on not-so-positive results associated with the fall of major cryptocurrencies, closing yesterday with losses of 3% and 0.16% respectively.
Outside the crypto arena, the index NASDAQ 100, composed of the largest non-financial companies listed on the stock market, fell 1.3% at the close refers to the closing price; similar to the same term used in stock trading. of trading yesterday, continuing the trend seen over the past two months.
However, in the latter case, the negative performance seen in this index seems to go hand in hand with the emergence and rebound of cases by COVID-19 for the variantOmicron, which is spreading much faster than earlier strains of the virus.
On the other hand, the index S&P500 is also going down in the last 24 hours, closing yesterday with losses close to 1%.
- Bitcoin price below USD $39,000 and major altcoins register steep drop on Jan. 21
- El Salvador: Government to offer Bitcoin-backed loans and build NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. casino
- Twitter rolls out new NFT feature for paid subscribers and Elon Musk isn’t a fan
Version by Angel Di Matteo / DiarioBitcoin
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