Geopolitical tensions are looping the cryptocurrency spiral

Geopolitical tensions fueled a cryptocurrency spiral last week, weakening, among other things, the upcoming price recovery bitcoin i Ethereum. Bitcoin's price hovered around $ 44 earlier this week, but it fell on Thursday as tensions resumed between Ukraine and Russia. The price dropped from a high of $ 000 on the eToro platform to around $ 44.

The second cryptocurrency price hit came over the weekend with news of a major hacking attack on NFT. The panic of NFT traders on social media pushed the price even lower, setting the price at around $ 38. As of this writing, the price has increased slightly and is now around $ 000.

Ethereum also rose above $ 3100 earlier this week before falling on Thursday due to geopolitical tensions. The price on eToro hit just $ 2561, then rebounded to around $ 2700 this morning.

Georgia Signs Cryptocurrency Tax Incentives

Georgia is the latest US state to signal its readiness to spur cryptocurrency mining. The state has made it clear that some of its neighbors are starting to take advantage of the burgeoning cryptocurrency sector and are not eager to miss out on potential tax revenues from businesses in their neighborhood. The resources in the legislation are small, but the intentions are big. Like legalizing marijuana in the US state by state, crypto-dominoes have already begun.

The governor of Colorado also recently announced that he is open to the idea of ​​taxpayers paying crypto bills, hoping the state will be able to accept crypto payments as early as this summer. The governor of Polis views Colorado as "First digital state". It's clear that different states are now struggling to be seen as the most pro crypto. It is a very positive signal for the market and, more broadly, for the industry.

Sequoia is betting on crypto

A large investment company Redwood put $ 500 million on cryptocurrencies by launching a fund to invest in tokens. The fund will mainly buy cryptocurrencies on third party platforms, operating as a sub-fund of the flagship Sequoia Capital Fund, which invests in companies in the crypto-asset sector.

Sequoia is thus making a big move in the crypto market and marks an interesting moment, especially considering some token price flexibility in 2022. The company says it supports tokens over a 20-year perspective. It follows that cryptocurrencies are no longer about quick profit before exiting the market - major financial institutions buy and prepare for long-term investments. Long-term behavior is fundamentally a good signal and a huge increase in confidence in the market, especially at a difficult time.

Morgan Stanley recognizes the potential risks associated with Ethereum

The major financial institution Morgan Stanley called Ethereum a greater investment risk than bitcoin. The company has cemented its skepticism by announcing that bitcoin has a "unique" purpose, while the Ethereum blockchain has many competitors such as Cardano, Solana and others. This is basically true. Bitcoin is by far the most powerful cryptocurrency. It can only be compared to Dogecoin or shibbut they don't really compare. However, comparing Ethereum to other app-building blockchains makes sense. The question for investors is how to balance this risk and consider diversification within the sector to be involved in a variety of projects.

With 51 tokens on the eToro platform, traders have more choice than ever in this regard. It is very important to realistically assess your investment risk and research crypto use cases. But we are at a really exciting time for the sector and it will only keep going more dynamic.