#crypto #money #bitcoin #ether
$BTC $ETH
Bitcoin and other cryptocurrencies have experienced a major sell-off perhaps due to China’s crackdown on it mining sector and it creation of its own digital currency, but do not dismiss the digital assets.
Around $400-B in value has been wiped from the total digital currency market since last Friday, when a major Bitcoin mining hub ordered miners to shut down operations.
It followed reports saying that the PBoC had a meeting with banks and gave instructions to freeze all payment channels supporting cryptocurrency trading.
Nevertheless, our data shows that there is more buying than selling in here.
Bitcoin experienced a volatile trading session Tuesday where it briefly dropped below 30,000 before bouncing back into positive territory.
Serious crypto investors this wk do not see a cause of concern and more a case of Yippee, here we go again, let’s buy this correction.
For many investors, experienced and less experienced, the new lower prices triggered by the selling, will be used as a Key buying opportunity.
Even those in China, which is a major market for Bitcoin and the wider crypto sector are finding ways to navigate their way around the system and Top-up their portfolios at the lower entry points.
Below are the Key factors that are driving the crypto market, as follows:
Inflation: There are legitimate and growing concerns about inflation as economies re-open and pent-up demand is unleashed by households, businesses and entire industries but is met with supply shortages.
Bitcoin is widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.
Institutional support: There is growing investment from major institutional investors, bringing with them capital, expertise and reputational pull.
Regulation: Global financial watchdogs are increasingly looking into establishing a regulatory framework. Because take crypto seriously as a financial asset and a medium of exchange. Regulation would give more protection and, therefore more confidence, to both retail and institutional investors.
Plus,, they are decentralized and not controlled by any financial institution which are largely viewed as outdated and untrusted by millennials.
Money: Savvy investors appreciate the inherent value of digital, borderless, global currencies for trade and commerce purposes in our increasingly digitalized economies in which businesses operate in more than 1 jurisdiction.
As such, cryptocurrencies are regarded as the Future of Money.
Have a positive day, Keep the Faith!
