Bitcoin loses volatility again
Bitcoin once again failed to get on the upside track, and its exchange rate fell to $17K, around which it has been languishing since the beginning of the month. The reason for the decline was pressure in the markets due to good economic data, which increased speculation that the Fed would have to go further in raising rates than previously expected.
According to Coin Shares, investments in crypto funds fell by $11m last week after an outflow of $23m the week before. Bitcoin investments rose by $11m, and Ethereum fell by $4m. Investments in funds that allow shorts on bitcoin fell by $11m. Trading volume was $753m, compared to an average of $2bn a year ago, suggesting low investor engagement, Coin Shares noted.
Cryptocurrency broker Genesis Global Capital has reached $1.8bn in debt and is likely to continue to grow, CoinDesk reported. Massari estimates that the platform needs to raise at least $500m to avoid liquidation.
Bloomberg Intelligence senior commodities strategist Mike McGlone believes that cryptocurrencies are now going through their last phase before hitting rock bottom. However, he says it will be tough for investors and companies to survive this phase.
A Chinese court has ruled that non-exchangeable tokens (NFTs) are virtual property that should be protected by law.