Two crypto- According to the currency expert, the volatile journey of the cryptocurrency market at the beginning of 2022 does not seem to deter institutional investors.
bitcoin It has lost 20% of its value so far this year. Ethereum, the largest altcoin, has also lost 33% this year. According to CoinMarketCap, the cryptocurrency market as a whole recorded a total valuation of approximately $1.67 trillion, down 24% in Friday’s session.
Stocks have also suffered heavy losses this year as investors have repriced assets to prepare for the crisis. The Federal Reserve has cut interest rates this year to rein in inflation. at least four times expected to increase.
However, COO and co-founder of Bitcoin IRA Chris Kline He also evaluated the current situation of the market with the following words:
“Almost everything is fine to start this year. Bitcoin and crypto in general have more volatility because they are the type of coins that will increase 100% in a year. You wouldn’t see S&P or Dow Jones doing this. That’s why it’s important to keep comparisons.”
Despite the sell-off in recent months, the crypto market has generally made big gains over the past year. Most traded cryptocurrency bitcoinincreased by 60% in 2021. Ethereum recorded a stunning 400% jump. Kline said that most of the gains were driven by institutions like investment bank Goldman Sachs that have adopted Bitcoin as part of their business and investment strategies.
Kline added that Bitcoin, which was first released in 2009, is in its “adolescent stages” and that volatility tends to be high in the early years of an asset class.
“It doesn’t seem to scare institutions. In fact, they profit from it. El Salvador last week [daha fazla] bitcoin he bought. MicroStrategy has bought more and new players are positioning it.”
El Salvador’s president, Nayib Bukele, said last week, “for just $15 million” as the price dropped. 410 Bitcoins He said he bought it. Enterprise analytics software manufacturer MicroStrategy also took advantage of Bitcoin’s price drop in December and bought $94 million worth of digital currencies. CEO Michael Saylor told Bloomberg last week that he has no plans to change his plan to buy Bitcoin despite the cryptocurrency’s price drop.
He’s also the CEO and co-founder of Injective Labs, a decentralized exchange backed by billionaire investor Mark Cuban. Eric ChenHe said that financial firms recommend investors invest in digital assets.
“I don’t think price volatility or general market selling has impacted corporate interests as of today.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.