Cryptocurrency Market Stabilizes After Crisis: Can It Recover Its Best Prices?

market cryptocurrencies it stopped “bleeding” after a significant collapse in recent months. Having fallen on the floors up to 18 thousand dollars, the leader of the list, bitcoinfound a solid base above $23K, causing a small increase in the rest and reassuring its users.

Is it possible to see in this positive atmosphere cryptocurrencies at the prices that were around 2021 or, without going too far, at the beginning of the year?

A market that can grow

“There are many factors that could have influenced the fall of the market cryptocurrencies. It is important to emphasize that we live in unprecedented times, when the very fact of the exit from the pandemic, the conflict between Ukraine and Russia, the political decisions of the United States and others; they put every market or economy to the test. And, being no exception, cryptocurrencies they have played a major role in some of these events, and because of their “design and involvement”, they are indirectly influenced,” says Francis Sancinelli, business manager of InBestGo, a FinTech crypto company and an official partner of ABRA. us.

“Today, a large number of people or organizations that cryptocurrencies they somehow resolved to “HODL” their digital assets with minimal movement, hoping to get more clarity on what could happen. Interestingly, this “moment of peace” served as a confirmation of many blockchain projects that depended on speculation and volatility. Now the projects and their reliability are really being tested,” he adds.

Given the critical context, one would expect less traditional alternatives such as the crypto market to be pushed into the background, “global investors would be ready to sell their assets.” cryptocurrencies in exchange for safe-haven assets,” says Matias Romero, country manager for Buenbit in the country.

“Similarly, the recovery in prices in July was associated with less worrisome indicators of global inflation, which forced economic agents to adjust their expectations of higher interest rates. Thus, investors began to buy assets with higher growth potential. During July, the US stock market rose by 9%; Bitcoin, 26% and Ethereum, 67%,” he gives an example.

Just look, therefore, at bitcointo be able to assess the development of the common market.

Since April, the currency has been trending down from its pips close to $40,000 per unit. In June, the crisis escalated to almost $18,000, as we can see on CoinMarketCap. From two weeks of this month to now, its rise has been smaller but consistent, at $23,000 this average weekend, a value that has held for two weeks.

“While it’s hard to predict what might happen in the short term, it’s important to note that despite the volatility, many high-profile institutional players have doubled down on their bets in this space. For example, Blackrock, the world’s largest investment manager with $10 trillion in assets under management, announced an alliance with Coinbase in early August to facilitate access to digital assets for its institutional clients,” Romero comments.

“It happens that every four years there is a natural “adjustment” in the market, which is usually aimed at confirming the current strength of the market and finding the most suitable opportunities for investors. There is a famous model stock-to-flowwhich shows how we are “entering the stage of stability” as part of the growth Bitcoin. Regardless, it continues to be the biggest growth asset since its inception,” says Sancinelli.

Between governments and crime

The fall cryptocurrencies a few months ago, he was supported by the decline of lenders like Celsius, whose minds were illiquid amid the fall in the value of the currency.

Added to this fact is the intense scrutiny that countries like the United States or members of the European Union have that are already behind exchanges, many of which, like Tornado Cash, are accused of being money launderers.

“For gamers like us, regulatory clarity is always welcome and we are taking steps to make the ecosystem more transparent. Then there were common crimes where some payments were made in cryptocurrencies, but most payments were still made in fiat money. Things should not be confused, as there was no crime through the cryptocurrency itself,” says Romero.

“The fact that crimes are committed with digital currencies is the same thing that can happen with FIAT currencies (money laundering, terrorist financing, etc.). The most interesting about cryptocurrencies and blockchain is that it allows regulators to better track all transactions, sources and stakeholders. This is something that the traditional financial system cannot do today with the same scale. There are portals where you can check the origin of every transaction that takes place on the blockchain (https://www.blockchain.com/explorer). The level of monitoring offered by this technology is much higher and should become an essential tool for government agencies to decide and trust the blockchain and its value proposition even more,” recommends Sancinelli.

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