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Saturday, September 24, 2022

Cryptocurrencies: Is the bear market over?

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Source: Coinglass, Bitcoin Monthly Returns (https://www.coinglass.com/today)

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In contrast, we have the number 2 coin in the ecosystem, Ethereum, which registered an extraordinary rise of 56%. In many moments the two most important cryptocurrencies in the world move together, but this was not the case, here is the reason for it.

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Source: Coinglass, Ethereum Monthly Returns (https://www.coinglass.com/today)

Since 2021 in the project ethereum A process called ETH 2.0 began, which will have an important tentative date in September of this year, where the change of the mechanism will take place. Proof-of-Stake instead of Proof-of-Work. Thus stimulating the efficiency of the network. This is a change that representatives of ethereum They have been promising for a long time, and if they comply with what is established in just over a month it will be a reality. The community is very expectant of this moment and it has been the main reason for the rise we have experienced.

Last week we had a newsworthy milestone, where BlackRock corporation has partnered with Coinbase to propel the Exchange into the industry and create new hotspots for digital asset adoption. It is important to highlight this since it indicates that high caliber corporations do not want to lose the opportunity to participate in the market for cryptocurrencies. Also promoting credibility for users who years ago would have seen this as something unthinkable.

Taking into account all of the above, it is important to note that over time and with more and more users including crypto assets in their investment portfolios, the factors that generally affect traditional risk assets. They begin to affect the crypto market in the same way, these being the global macroeconomic context, inflation and interest rates. In previous years, these factors did not have such an implication since the crypto market was used by few users. But the landscape has changed and this technology blockchain He has shown that he is here to stay.

Crypto & Financial Analyst at N&W Professional Traders.

Source: Ambito

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