[Digital Today Reporter Hyun-woo Choo] The rise in the virtual asset (cryptocurrency) market, which was likely to rise endlessly, took a break. Bitcoin, which had risen to the bottom of $60,000, has settled for days after sinking below the $50,000 resistance line.
The market is seldom recovering despite the news of the bitcoin investment of Square, a mobile payment service company. Major altcoins, including Ethereum, have also failed to escape the bearish market. Dogecoin and Cardano, which have recently been in the top 10 for virtual assets market caps, are also showing a mixed trend.
Bill Gates, who showed a critical view of investing in virtual assets, also helped. It is a bitter voice that ordinary individual investors should not pretend to be Elon Musk. Anyway, I advise you to keep in mind that virtual assets are highly volatile investment assets.
However, the dominant evaluation is that the current downtrend is only a correction affected by profit realization, bubble theory, and the downtrend in the US stock market, but not at the level to reproduce the collapse in early 2018.
Related investment bank JPMorgan said that many investment funds maintain the ratio of virtual assets at 1%, and recommended that the ratio of virtual assets be maintained at a certain level when forming an investment portfolio. Securing a defensive hedging tool in a bearish market is an essential step for institutions and individuals.
In the new year, the movement of central banks around the world on the issuance of digital currency is becoming more active. The U.S. Fed, which was negative about the issuance of CBDC, turned to’reviewing the introduction of digital dollars’, and the Bank of Japan is also actively introducing digital yen on the occasion of the Corona 19 pandemic.
China, which launched an aggressive digital yuan pilot project last year, is leveraging Hong Kong to attract Thailand and the UAE. This is the background of early observations that China is promoting the issuance of common digital currency in Asia. On the other hand, SBI, India’s largest state-owned bank, which is pursuing anti-China routes, joined hands with JP Morgan in the United States.
Lambda 256, the operator of the blockchain service platform Looneyverse, also made various moves. Following the launch of the enterprise business value-up kit, which is an enterprise-specific product, it has partnered with Naver Cloud to provide a strategy for spreading blockchain technology to the public market.
The non-replaceable token (NFT) market is steadily growing. NFT Mortgage Loan Service With the news that NFT Pie has attracted an investment of 890,000 dollars, the Ethereum DeFi ecosystem is also looking for a variety of business changes as the Ethereum DeFi ecosystem enters its maturity phase.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.