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Bitcoin has dropped to its lowest level since late 2020.

Bitcoin has dropped to its lowest level since late 2020.

created Simon petersJune 13 2022

Bitcoin dropped to the lowest level since the end of 2020 due to concerns about accelerating inflation in the US. While cryptocurrencies have not reacted like traditional assets in the past, the link between them has become closer and closer in recent times. Now there is the clearest signal so far that cryptocurrencies like bitcoin and ethereum are moving in parallel with stocks as concerns about inflation have caused stocks and cryptocurrencies to plunge sharply.

The reasons for this vary, but it is largely due to institutional owners calibrating their risky assets in a similar way, whether they are tech stocks or bitcoin. Monthly inflation in the United States fell from 8,5% in April. to 8,3%, which suggests that the price increase was at the "peak" - but new highs at the level of 8,6%. last Friday, they rocked both the stock and cryptocurrency markets.

Bitcoin started the week strong, soaring above the $ 31 mark, but later in the week traded mostly around $ 000. However, over the weekend it fell to below $ 30 on eToro due to concerns over inflation. Currently, the price is even below $ 000.

Ethereum it also rose to around $ 1900, and later in the week, hovered around $ 1800. However, over the weekend, the price dropped significantly and is now around $ 1200.

The Merge on the right track - the developers announce difficulties

Upcoming Ethereum blockchain connection is on its way as the Ropsten network test has completed. On Friday, developers involved in the blockchain transformation announced the introduction of so-called difficulty bombs in the old proof-of-work network to encourage the adoption of the new system.

Merge will essentially move the Ethereum blockchain out of the model proof-of-work (PoW) on the model proof-of-stake (PoS). This will encourage cryptocurrency owners to participate in the network and aims to move away from the highly energy-intensive PoW model.

While miners will still be able to use the PoW model, when triggered, a difficulty-bomb will be introduced which will make the mining process much more difficult - which will discourage them from doing so. It is suggested that over time, thanks to the PoS model, it will become a deflationary cryptocurrency in which ETC owners are encouraged to act like savers.

However, there were reservations from the developers. Some have suggested that the bomb may slow down The Merge process. The founder of Vitalik Buterin has announced that it will take place in August and October at the latest.

Mastercard will introduce NFT payments

Mastercard, a global technology company operating in the field of payments, intends to introduce direct support for the NFT and Web3 platforms on its cards. The company says it is trying to give customers access to the market and lowering barriers to products with its payment solutions.

In a situation where NFT market and Web3 is growing rapidly, the addition of an important infrastructure component such as Mastercard cannot be underestimated. Access is arguably one of the key issues when it comes to emerging financial technologies such as NFT, and removing barriers to entry is a boon to this space.

In the emerging NFT market, even despite low prices in recent months, a diverse sector has grown, rich in designs, ideas and innovation. When big institutional financial players like Mastercard come into play, this is a big moment. Mastercard already has options when it comes to other cryptocurrencies, but NFT and Web3 are still in their infancy in this regard.

The company works with several major players, including The Sandboxwhich is available on eToro platform as a SAND to allow customers to use Mastercard cards across platforms to pay for digital goods. Mastercard says its partner companies generated approximately $ 25 billion in sales in 2021.

Salesforce launches its own NFT platform

Company Salesforce which deals with software in the cloud, launches its own NFT platform, called NFT Cloud. For this world leader in cloud business software, the NFT platform is the natural choice for them.

The platform will allow the company's business clients to create and manage their own NFTs and help them create a strategy for brand engagement and access to it. This is a classic game of offering tools to other companies that open up new technologies.

While there is already a strong market for NFT platforms and many ways to build them, the importance of companies like Salesforce offering these kinds of tools is that they open up the market to companies that may not have the technical expertise to build their own product from scratch.

Consumers have a clear appetite for NFT tools to help them engage with the brands they love. The Salesforce offer is a very attractive idea for business clients.

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About the Author
Simon peters
eToro analyst. A graduate of the Faculty of Mechanical Engineering at Brunel University in London. He is CFA UK Level 4 certified in Investment Management.

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