Thursday, July 7

Fed and Kazakhstan add uncertainty to ‘crypto’ market




New fall in the price of bitcoin that this Monday has returned to be below 40,000 dollars, for the first time since the end of September. Specifically, it has reached a floor of $ 39,663.18 at noon, although by late afternoon it already exceeded $ 41,300. In any case, the main cryptocurrency worldwide has been left so far this year 12% of its value And, despite these ‘comebacks’ like those of today, its price is far from the historical maximum that it reached in October when it changed to $ 66,000. A level that, at the moment, seems very far in the face of so much volatility fueled by the change in monetary policy

of the US Federal Reserve. Nor does the political crisis in Kazakhstan, which accounts for 18% of global cryptocurrency mining, help.

The Italian journalist and author of ‘Crypto Jungle: The low cost comes to finance’ Emanuele Giusto acknowledges that “the immediate reaction of the market to the news from Kazakhstan, or to the interest rate adjustments of the US Fed, has been a price drop against the dollar », although he does not believe that it has generated “any trauma” in the crypto universe. In his opinion, the market has interpreted it as “a new phase of buying crypto assets at a lower price » and he does not believe that this market will be affected by the conduct of the Fed and what happened in Kazakhstan. Giusto believes that in its 13 years of existence, bitcoin has managed to maintain “an ideological and practical independence in its journey.” For this expert, “the function of bitcoin as a store of value, a universe of companies and projects, is having its big bang during these years,” he concludes.

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Weeks of “volatility”

For Javier Castro-Acuña, Bitnovo business controller, we come from “A few weeks of considerable volatility” which he attributes, especially, to the intention of the US Federal Reserve to raise interest rates. «Until now the rates were practically at 0 and, after this announcement, there will be investors who are deciding to get out of such a volatile asset, there will be more returns on more traditional investments, “says Castro-Acuña, who believes that the ban on cryptocurrencies by the Chinese government was more shocking due to the strong weight of the Asian giant in cryptocurrency mining.

In this sense, this analyst recalls that “A year ago the value of bitcoin reached around 40,000 dollars, when three months ago it was 10,000 euros” and does not hesitate to consider as “normal” the existence of strong corrections of 80%. “I do not recommend anyone to ‘trade’ with cryptocurrencies, especially if this type of assets is not understood,” says Castro-Acuña, who believes that in the long term, bitcoin is the most profitable investment of the last decade.

In this sense, Bitnovo’s business controller warns that “the offer is limited to about 21,000 million bitcoin and when the price grows more than 3% per year, it will go up “and advises against investing” more money than you are willing to lose. ”

For his part, the analyst of the cryptocurrency brokerage GlobalBlock Marcos Sotiriou advises that «We can expect even more bitcoin sales, as investors calculate that the stronger the inflation, the faster the Fed will have to be current. Reports AFP.

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