- Deepening problems in the cryptocurrency market
- Market volatility threatens UST’s stable stability
- Meta will start supporting NFT
- Gucci will start accepting cryptocurrency
Deepening problems in the cryptocurrency market
Last week, the cryptocurrency market experienced a serious sale, exacerbating the problems it has faced since the beginning of the year.
Bitcoin has fallen 16 percent in the past few days after rising to about $ 39,000 earlier this week. It has been declining since then and is now trading above $ 33,000. Its cost is now more than 50 percent. is lower than the current record (ATH) set in November last year. Ethereum has experienced a more serious decline of about 17% since Thursday. This is most likely due to the many obstacles in the market in which this cryptocurrency is struggling.
Ethereum rose to about $ 2,900 on Thursday, but has fallen slightly above $ 2,400 since then. Cryptocurrency investors are wondering when this series of declines will end. The market currently operates on key risky assets such as technology stocks.
This indicates a significant change in the cryptocurrency market: the existence of institutions that now make up a larger part of ownership and link cryptocurrency decisions to other key assets. While this is not a consolation for those facing significant declines for cryptocurrency investors, the result is that retail investors no longer have to face the market alone and exist as owners of institutions in terms of long-term value and potential. – is positive.
Market volatility and poor performance tend to normalize over time. Therefore, it is important for investors to be sure that they are satisfied with their investment and are ready to stay on course in the event of greater volatility.
Market volatility threatens UST’s stable stability
Ongoing uncertainty in the cryptocurrency market has short-lived the UST stabilkoi against the US dollar.
The UST is one of the stablecoin carts with digital signs that reflect the value of traditional fiat currencies. The UST uses a basket of assets to keep in touch with the US dollar, but this is being tested under adverse market conditions. Over the weekend, assets were poured into various platforms and removed from the liquidity pool. The $ 150 million withdrawal came from stablecoin sponsors Terraform Labs (TFL), which re-deposited when it realized the UST pole had fallen.
This is not the only time when the stablecoin has temporarily depreciated against the dollar. However, the current atmosphere of fear and uncertainty in the cryptocurrency market has made it even more likely. The TFL, as a state with a fiat currency, is now tasked with maintaining the peg index.
This actually means throwing away assets to protect their value. It is worrying that often when a country is facing a currency crisis, it can only protect its money until it depreciates. This may soon be related to the UST, which depends on TFL resources.
Meta will start supporting NFT
Meta platforms such as Facebook and Instagram say NFT support is inevitable.
According to CoinDesk, the plans will use blockchains such as Solana, Ethereum Flow and Polygon. The pilot program is scheduled to begin today. The oil market is coming at a difficult time. Wider cryptocurrencies – and among traditional assets – saw NFT sales drop significantly in market value. However, there is still a really strong demand for some of the new stocks offered for sale, indicating that there is still an appetite to retain some of these assets. The impact of the introduction of NFT Meta will not necessarily change the face of the market, but will help speed up the mechanisms. Any chance to make it easier for ordinary people to access technology is a good thing and contributes to future market potential.
Gucci will start accepting cryptocurrency
Fashion brand Gucci said it plans to accept cryptocurrency payments in some stores in the United States. Customers will be able to pay in cryptocurrencies such as bitcoin, dogecoin, ethereum, litecoin and shiba inu. The procedure will be applied at the Los Angeles branch, as well as in New York.
While the transition from a luxury franchise to a cryptocurrency is unlikely to be a breakthrough, it’s a remarkable moment to see a trend maker like Gucci deal with space. Although there were frequent entries in non-financial transactions by luxury brands last year, there are still significant delays in the payment of cryptocurrencies.
Fashion brands like Gucci make money as trend setters, so it will be interesting to see more fashion houses follow suit to keep up with this trend.