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Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

The crypto market crashed amid a rising inflation rate. BTC, ETH and others lose the market cap

The crypto markets have hit a new low for the year, with the market capitalisation plunging below the $1 trillion mark for the first time since February 2021. Bitcoin has dropped below $23,000, its lowest point since December 2020. And BTC isn’t the only one, nearly every top coin is now worth half or less of its all-time high.

The total market capitalisation of the market at the time of writing stands at $963 billion, a drop of around 4.1 percent since yesterday. Bitcoin (BTC), the most valuable crypto by market capitalisation, dropped sharply, and its market dominance fell to 45 percent, registering a decrease of 2 percent over the day. Ethereum, the second-largest crypto by market cap, slipped below the $1300 mark, with a total valuation just above $149 billion.

Both tokens are roughly down by 70 percent from their November peaks.

According to Kunal Jagdale, founder of BitsAir, investors have lost around $2 trillion due to the recent market carnage. “The risk aversion sentiments have weighed hard on the digital assets and the new investment asset class,” he added.

Data released on Friday showed that the annual inflation rate in the US accelerated to a 40-year high of 8.60 percent. The bears maintained their dominance in the global crypto market over the weekend. It is important to note here that the US Dollar Index (DXY) is also at a six-month high, having gained 2 percent in a single day and causing a drop in the stock and crypto markets.

“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptos suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” Edul Patel, co-founder and CEO of crypto investment platform Mudrex, said in a statement.

Besides the high inflation rates, several intramural and extramural factors have adversely impacted the crypto market. The market hasn’t yet revived completely from the Terra-UST crash and might face another in the form of Celsius’s looming shutdown.

“The tightening of monetary policy is denting the appeal for riskier assets like crypto and equity. Other than this, rising inflationary worries and looming recession concerns are also hurting the market for digital assets, which is quite in the nascent stage,” Jagdale said.

Despite the pessimism in the crypto market, some experts advise investors to buy the dip in order to average out their costs and make long-term gains. Based on current market sentiments and statistics, the recovery will be slow, according to Anndy Lian of BigONE Exchange. He added, “This could be a start to another crypto winter which could last for another 2 years.”

Among the intramural factors, there is a lot of talk about regulatory actions from various global governments, making the industry and investors nervous. Furthermore, Terra’s LUNA fiasco is a major contributor to the fallout. It is rumoured that Luna has wiped out $40 billion from investors’ bank accounts. Last week, digital assets worth approximately $102 million were sold by US crypto funds ‘in anticipation of hawkish monetary policy from the US Federal Reserve.

Despite the fact that the crypto market has tanked, NFT trading volumes have increased. Top NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Crypto Punks have increased by 100 percent in the last 24 hours.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Crypto carnage continues! Investors lose over $2 trillion in eight months + Additional insights

Crypto carnage continues! Investors lose over $2 trillion in eight months + Additional insights

I have also added more insights to what I was quoted in The Economic Times.

Anndy Lian said: “The key weakness to crypto is that we are too closely linked to traditional assets. This weakness is amplified by traditional institutions that were here just for short-term gains. The quick outflow of money left us high and dry.

I think the major tokens contributing to this fall started off with the TERRA LUNA and UST saga last month. Then we saw a global economic slow down choked amid inflation and war, which then resulted in weaker demand in Bitcoin from long-term holders on top of higher selling pressure from the short-term holders. This added pressure to Ethereum too, which has fallen close to 28% in the last 7 days. The downstream issues have snowball effects as the two big brothers continue to fall. Today we saw Celsius tanking 70% in 1 hour after they stop withdrawals citing extreme market conditions. Withdrawals also cause liquidity issues and could result in unsustainable APY.

We need to understand that the whole crypto market is tightly knitted together. While many out there are spreading FUDs about Ethereum for instance. They are also indirectly killing themselves. At such times, we need to stay united and make relevant decisions to reduce losses to the investments made in the most logical manner.

The recovery will not be anything soon based on the current market sentiments and statistics. This could be a start to another crypto winter which could last for another 2 years or so.”

 

Crypto carnage continues! Investors lose over $2 trillion in eight months

New Delhi: The carnage in the crypto market has gathered pace with no near-term respite in sight. Considering the latest slide, investors have lost over $2 trillion (about Rs 15.65 lakh crore) over eight months.

If we compare the notional value lost, only eight countries have a GDP more than what the crypto market eroded in less than three quarters. Countries like Canada and Italy have a GDP of little more than $2 trillion, whereas Brazil’s GDP stood at $1.83 trillion.

The total market capitalization (m-cap) of the digital market is marginally above the $1 trillion mark, which was more than $3 trillion at its peak in November 2021.

Bitcoin, the largest crypto token, is barely above the $25,000 level. It has dropped more than 20 per cent over the weekend, with its market cap slipping below $500 billion or half a trillion.

Its largest peer, Ethereum, has barely managed to hold the $1,300 mark, with total valuation just above $160 billion.

Both the tokens are down about 70 per cent from their peaks. Bitcoin’s dominance in the total market cap has been about 47.25 per cent, which shows that altcoins are left with value worth merely a few billion dollars.

Market participants are linking the weakness in the crypto market closely with the traditional asset class.

Shivam Thakral, CEO, BuyUcoin said after the consumer price index reported the highest inflation since 1981, financial markets across the globe have seen a sharp downturn. The rising food, gas, and energy prices are putting tremendous pressure on the crypto market, he added.

“The market is expected to remain choppy in the coming weeks and the globe continues to report high inflation numbers.”

Anndy Lian, Chairman, BigONE Exchange said the weakness is amplified by traditional institutions who were here just for short term gains. The quick outflow of money left us high and dry, he added.

“We saw a global economic slowdown amid inflation and war, which then resulted in weaker demand. There are liquidity issues and could result in unsustainable annual per cent yield.”

Among the altcoins, Curve Dao Token, Nexo, Fantom, Stepn, Waves, Kava and THORChain have taken a big hit. These tokens are down by 20 per cent in the last 24 hours.

On a weekly basis, Convex Finance, ApeCoin, Avalanche, Near Protocol, Axis Infinity, Harmony and The Graph are down by 35-50 per cent. The major part of this correction has been witnessed over this weekend.

Praveen Kumar, Founder & CEO, Belfrics Group said the volatility in the market would continue which would have a significant impact on the valuation of other coins including Ripple, Cardano, Tether, Solana, among others.

The recovery will not be anything soon based on the current market sentiments and statistics, said Lian from BigONE Exchange. “This could be a start to another crypto winter which could last for another 2 years,” he adds.

On the other hand, some experts are suggesting investors to buy the dips to average out their cost and make gains in the longer term. Going forward, I believe the volatility would continue and there would be immense pressure on Bitcoin and other key altcoins as well, said Kumar of Belfrics.

Thukral from BuyUcoin said that the current dip in the crypto prices allows investors to buy crypto at 2021 prices and we expect the seasoned investors to take advantage of the dip.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

 

 

Original Source: https://economictimes.indiatimes.com//markets/cryptocurrency/crypto-carnage-continues-investors-lose-over-2-trillion-in-eight-months/articleshow/92179178.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Cosmos crypto price prediction: Where next after Terra’s crash?

Cosmos crypto price prediction: Where next after Terra’s crash?

ATOM, the native token of the Cosmos network, saw a bullish run in 2021, surging 453.3%.  In the beginning of 2022 the token continued the momentum, rising above $40. But, the surge was short-lived amid negative sentiment in the cryptocurrency markets fuelled by Russia’s invasion of Ukraine.

The crash of the LUNA token and the TerraUSD (UST) stablecoin at the start of May 2022, both based on the Cosmos network, were also key driving points in the cosmos cryptocurrency’s decline.

Where is the token headed now? Here we take a look at what factors are shaping the cosmos crypto forecast for 2022 and beyond.

What is cosmos (ATOM)?

Coined as “the Internet of Blockchains” by its founding team, Cosmos aims to build an ecosystem of independent interconnected blockchains, allowing them to “interoperate while retaining their security properties”. It was co-founded by Jae Kwon and Ethan Buchman in 2016.

Blockchains can interact through its architecture of zones. Users can build multi-asset public Proof-of-Authority (PoA) and Proof-of-Stake (PoS) blockchains, like the Cosmos Hub.

Through this the network aims to solve a number of limitations of cryptocurrencies, including scalability, usability and sovereignty. The end goal, the platform’s website notes, “is to create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralised way.”

The network’s focus on customisability and interoperability sets it apart from other projects.

Cosmos is based on the Tendermint Byzantine Fault Tolerance (BFT) consensus algorithm designed to ensure finality, order consistency and optional availability. The network also consists of the Cosmos SDK, an industry standard for building blockchains.

Cosmos’ IBC (inter blockchain communication) allows blockchains within the ecosystem to connect so that they can transfer tokens and other data between one another frictionlessly and seamlessly.

In addition, users can also create marketplaces allowing for permissionless global trade. They can build autonomous application-specific blockchains, rather than smart contracts, to avoid high transaction fees and network congestion.

Moreover, users can also create games with unique collectibles in the form of non-fungible tokens (NFTs) and character upgrades that they can monetise without third-party approval or app store fees.

According to the network’s website, there are currently (30 May) 265 apps and services on Cosmos, including the Binance Chain (BNB), Terra (LUNA) and Crypto.org (CRO), with over $66bn of digital assets under management.

While the Cosmos Hub is a multi-asset distributed ledger, it offers ATOM, its native token. ATOM is the only staking token of the Cosmos Hub, and acts as a licence, allowing holders to vote, validate or delegate to other validators.

The token can also be used to pay for fees on the platform to mitigate spam, similar to Ethereum’s ETH. The token provides security to the chain, allows holders to earn rewards and vote.

As of 30 May, there are over 289m tokens in circulation, according to CoinMarketCap. The token has a market capitalisation surpassing $2bn and is ranked as the 29th biggest cryptocurrency on the platform.

The bullish run: Technical view

The ATOM cryptocurrency was listed on CoinMarketCap in March 2019. It was trading in bearish territory until the start of 2021. In February 2021, ATOM  surged by 174.2% from the low of $7.3839 to its first peak of $20.25 on 13 February. Between February and May, the token managed to grow an additional 42.1%, reaching above $28 by 9 May 2021.

The ATOM crypto value bottomed out between May and July, dropping by 67% to $9.4857 on 20 July 2021. This bear trend provided an opportunity for a new bull run, which saw the ATOM/USD price surge to the all-time high of $44.54 on 19 September 2021.

The token’s record level came ahead of the platform’s participation at Mainnet 2021, an immersive, agenda-setting summit held annually for crypto industry leaders.

ATOM to USD chart, Mach 2019 – May 2022

ATOM saw new highs once again in October 2021, surging to $43.22 on 26 October 2021 as Cosmos announced that Terra became the latest chain to enable IBC, bringing its native LUNA cryptocurrency as well as its TerraUSD (UST) stablecoin with it.

The cosmos cryptocurrency entered 2022 on a positive note, surging by 97.9% to $41.99 on 4 January 2022 from its $21.22 17 December 2021 low. A second surge followed on 16 January 2022, which saw ATOM’s value rise to $43.61. This was due to several reasons.

Firstly, Cosmos reported to have neared EVM-protocol compatibility, which would allow assets and projects that operate on the Ethereum network to migrate over to Cosmos. Secondly, the project announced that a liquidity staking module was coming to the platform, which would give additional functionality to the stakes chain assets.

That, however, was the last time ATOM was so close to its all-time high as it embarked on a bearish run for the remainder of 2022. Wider negative crypto market sentiment was fuelled by the start of the war between Russia and Ukraine, as well as bitcoin (BTC) falling below $27,000.

What is your sentiment on ATOM/USD?

The token lost around 79% of its value, hitting as low as $9 by mid-May 2022, as seen on the chart above. Today (30 May), the coin is valued at $9.94.

ATOM technical analysis provided by CoinCodex, as of the time of writing (30 May), showed that sentiment on the token was largely bearish.

A Relative Strength Index (RSI) reading of 32.5 was neutral yet extremely close to oversold territory. A reading of 30 or below would indicate that the asset has become undervalued and a trend reversal is likely. Meanwhile, the token was trading above its three-day moving average but below its five and 10-day moving averages.

Can ATOM recover?

In the latest cosmos crypto news, the network’s Gravity Bridge announced a number of milestones at the start of March 2022, including the introduction of ATOM with Ethereum DeFi and the Cosmos NFT platform, Stargaze, working with Gravity Bridge to send NFTs from Ethereum to Cosmos.

In April 2022, Cosmos introduced  its Theta upgrade which saw the official launch of Interchain Accounts, a module that has the potential to boost interoperability, traffic and composability.

In May 2022, KYVE, the Web3 data lake solution, joined the Cosmos ecosystem and migrated most of its blockchain protocol from EVM-based chain to the Cosmos SDK-based chain.

At the beginning of May 2022, the prices of the LUNA cryptocurrency and the UST stablecoin crashed, losing over 90% of their values within days. The tokens were based on the Cosmos network.

“As always, the cosmos ecosystem will continue to be a nurturing and safe environment for bold entrepreneurs to bring forth the Internet of Blockchains. Tendermint, IBC and the @cosmos SDK are showing the world how resilient & secure they are under extreme market conditions,” Cosmos said on Twitter during the LUNA crash.

In December 2021, Cosmos promised that its hub will continue to grow in the coming year, announced the launch of interchain security and accounts, more decentralised finance (DeFi) projects and the rise of NFTs.

“Cosmos is not a new token. It has been around since 2017 and has survived through all the down periods. Cosmos constantly remained in the top 50,  although many new investors may not have heard of it as it is not marketed that aggressively unlike Polygon or Binance Smart Chain,” BigOne Exchange chair in Asia, Anndy Lian told Capital.com.

According to Lian, the ATOM token took off because the Cosmos network offers “a simple experience for blockchain developers” with  “easy-to-understand tutorials, tools, and community assistance for developers.”

In 2020, Jae Kwon stepped down from his position as one of the project’s co-founders to focus on a different project. This, according to Lian, is one of the biggest uncertainties for the Cosmos prediction.

“He exited back then after several high-ranked employees left the company in protest of his leadership and it was reported that Kwon’s return to NewTendermint has continued to feud with his former Tendermint colleagues. I am not sure what is the truth and what are the backstories for this, but I think the lack of unity within their group makes this token vulnerable,” he noted.

Lian added that at the moment, ATOM has a strong support around the $9 range.

“Falling below this amount would mean that it may go below its launch price. This could happen too. Apart from the internal risks, I would caution all to look at external risks to manage your portfolio better.”

Cosmos (ATOM) price prediction 2022-2030

Despite the latest downward price action, algorithm-based forecasting service Wallet Investor gave a bullish outlook for its ATOM prediction, as of 30 May, suggesting ATOM is “an awesome long-term investment” with long-term earning potential at 752.13%.

Based on its analysis of past price performance, Wallet Investor’s cosmos coin price prediction suggested that the token could trade at $26.389 in 2023 and $84.685 by 2027.

DigitalCoinPrice also gave a positive ATOM crypto price prediction but saw a much slower pace of growth in future years. The site projected that ATOM could reach the target price of $13.76 by the end of 2022, $18.73 by the end of 2024 and $24.33 by 2025.

By the end of 2027, the site’s cosmos crypto price prediction expected that the coin could reach $34.02. Its long-term ATOM coin price prediction showed the cryptocurrency could trade at $49.10 by 2030.

Note that algorithm-based and analysts’ projections can be wrong. Forecasts and analysts’ expectations shouldn’t be used as substitutes for your own research. Always conduct your own diligence and remember that your decision to trade or invest should depend on your risk tolerance, expertise in the market, portfolio size and goals.

Keep in mind that past performance doesn’t guarantee future returns. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/cosmos-atom-price-prediction

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j