After a year down, cryptocurrencies aroused expectations

The fall in the value of cryptocurrencies in the last year is due to a confluence of factors, among them the fhigh liquidity of the main operators and the central banksthe increases in interest rates for savers’ bonds and a hardened macroeconomic framework after the contraction of the economies suffered during the pandemic.

The risk in crypto investment and the security of bank interest also contributed to the collapse of the virtual currency that that same year and after historical levels, began its recovery.

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To this we must add the crisis of the main virtual currency exchange platforms, Binance Y FTX.

When did the cryptocurrency recovery start?

The recovery process of the main cryptocurrencies started in October 2022, after two years of falls and performance floors below the desirable, a process that the investment expert and influencer norberto guidice describe as “black swan events”.

“Son unexpected events and impossible for analysts to anticipate, such as the collapse of the Luna-Terra ecosystem that with its UST stablecoin, with promised annual returns close to 20%, took more than 60B from the market. The second was the fall of FTX, the second most important crypto house in the virtual economy”, says Giudice.

Precisely FTX, owner of the virtual currency Ethereum (ETH) and second in importance in the market, presented a liquidity crisis, sold all its shares and used the resignation of its CEO, Sam Bankman-fried.

According to the specialized site Criptonocias.com, the bankruptcy of FTX “marked a before and after within the ecosystem of Bitcoin (BTC). In just one week, in which the entire FTX case was raised, Bitcoin fell from $21,000 per unit on Saturday, November 5, to $16,000 on Saturday, November 12, 2022.

For the cryptanalysis company cryptoquantificationwhile, there were several indicators that alerted about the financial health of FTX. For example, that its stablecoin cryptocurrency reserves had hit a year-over-year low, declining by close to 93%.

The recovery of both Bitcoin and Ethereum, as anticipated by a survey by Finbold, a site specialized in the cryptographic sector, began in September of last year, was consolidated in October 2022 and continued over the weeks.

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“After 2022 with more than a 70% drop in its price, Bitcoin, the first cryptocurrency, could have found its footing,” says Giudice, adding that, after almost 14 years of existence, “BTC has been showing a similar pattern of behavior in four-year cycles, in which three are of rise and one of retraction in prices”. If this cycle is consolidated, we could find ourselves at the beginning of three years of price increases.

retreating miners

“Virtual currency remains a risky investment, although the fundamental values ​​of Bitcoin have not changed: it is open source technology and publicly auditable at all times and a digital good of certain scarcity, since there will only be 21 million BTC, of ​​which 19.3 million are already in the hands of investors”, explains Giudice about the finiteness of virtual currency.

Bitcoin as software and network begins in 2009, its first halving was in 2012, the second in 2016 and the last in 2020. “We all witnessed the evolution of its price after those dates,” added the specialist and anticipated that the next The halving will be “in April 2024”, when the emission will be reduced “from 6.25 BTC every 10 minutes to 3,125 BTC every 10 minutes”.

The issuance of bitcoin is done through the miners who receive payment for contributing computing power to the network and in exchange receive their payments, a distribution that halves its amount every four years.

Although Bitcoin mining continues to reach historic rates, noor a massive liquidation of assets is ruled out. according to bitfinex alpha, a large number of Bitcoin miners are making withdrawals from their crypto asset wallets. “These miners could be planning to liquidate all of their assets, be it their Bitcoin stock or their mining machinery that might have been listed as collateral,” he says in his November 2022 report.

2023: Will it be the end of Bitcoin?

“It is clear that all miners are struggling in the current environment. Inflation, cost of living, Bitcoin price depreciation and mining costs are challenges that miners have to deal with on a daily basis,” so that it could see a second wave of miners abandoning crypto investment, warn the report by the exchange.

How much are Bitcoin and Etherum trading today?

The recovery in the prices of the cryptocurrency market, with Bitcoin the most popular digital currency in this ecosystem, around 21 thousand dollars and Ethereum breaking through the 1,500 barrier, other cryptos follow the rise, showing positive numbers compared to the last week . The question remains whether this recovery will continue on its course or the vicissitudes of the world economy will once again drive its decline.

“When embarking on the cryptographic world, the investor should be aware that these are emerging technologies that involve a lot of risk, so it is advisable to invest thinking in the long term and only the amount of money you are willing to lose” , concluded the influencer Norberto Giudice.

Some crypto alternatives to invest

With the price of Bitcoin (BTC) around USD 21,000, after a downtrend, the future of the exchange’s financial markets faces high volatility, uncertainty and in some cases panic for investors. But, for those who know how to decipher, understand and work with market variables, they assure that this represents a great investment opportunity with profit for the coming years.

“Currently, we consider that The cryptocurrencies that can make a leap in this 2023 are: BNBwhich is the currency of Binance, since it had a great setback due to the fear that occurred during the bankruptcy of FTX and I think it will have a great recovery in 2023, which can be a great opportunity”, explained Facundo Casal, CEO of Binance. South American Miners.

In addition, it emphasizes that “BitcoinIt’s also at lows that would really be too sizable to enter right now, and it still looks to me like there may be another opportunity even further down, near $13,000, but we’re at a very good price to enter today and exit the trade. at least a year and a half. Litecoin, which is very similar to Bitcoin, will have its halving this year. This cryptocurrency was created with the idea of ​​making bitcoin lighter, it also uses miners as a method of issuance and this year the reward for them, therefore the issuance, is reduced by half, this can cause us to see price rises and Be a good choice that I would not lose sight of. On the contrary we see that Ethereal pYou may have drops in your contribution due to the problems you are having. This will continue if it fails to remove the centralization it has and its risk of censorship”, concluded Casal, CEO of South American Miners.

LR

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