Deepening problems in the cryptocurrency market

Last week, the cryptocurrency market experienced a serious sell-off, exacerbating the problems it has been facing since the beginning of the year. After the beginning of the week the value of Bitcoin has risen to about $ 39, in the past few days, it fell by 000 percent. It has continued to decline since then, and is now trading above $ 16. Its value is now over 33 percent. lower than its current record (ATH), set in November last year.

Ethereum since Thursday it experienced a more serious decline of around 17%. This is likely due to the many obstacles in the market that this cryptocurrency has struggled with. Ethereum rose to around $ 2 on Thursday, but has since dropped to just above $ 900. Cryptocurrency investors are wondering when the series of these declines will end.

The market is currently moving in major risky assets such as tech stocks, among others. This points to a significant shift in the cryptocurrency market: the presence of institutions that now account for a much larger proportion of ownership and tend to link their cryptocurrency decisions with other major assets. While this may not be a consolation for cryptocurrency investors facing significant declines, the conclusion is that retail investors no longer have to face the market alone, and the very presence of institutions as owners - in terms of long-term value and potential - is positive. .

Market volatility and poor performance tend to normalize over time. Therefore, at the moment it is most important for investors to make sure that they are satisfied with their investments and that they are prepared to hold the course in the event of greater volatility.

Market volatility threatens UST's peg stablecoin

The constant uncertainty in the cryptocurrency market has resulted in stablecoin The UST briefly lost its link to the US dollar. The UST is one of the stablecoin carts, which are essentially digital tokens reflecting the value of traditional fiat currencies. UST uses a basket of assets to maintain a link with the USD, but this is tested by adverse market conditions.

Over the weekend, assets were spilled onto a variety of platforms and removed from the liquidity pool. Nearly $ 150 million of withdrawals came from stablecoin sponsors, terraform labs (TFL), who found out that the UST peg was going down, deposited money again.

This is not the only time stablecoin has temporarily depreciated against the dollar. However, the current atmosphere of fear and uncertainty in the cryptocurrency market has made it more likely. TFL, like the nation state that owns the fiat currency, is now tasked with defending the peg index.

This essentially means throwing away assets in order to maintain their value. Worryingly, often when a country is faced with a currency crisis, it can only defend its money until its price has fallen. This may soon be the case with UST, which is after all dependent on TFL reserves.

Meta will start NFT support

It is said to be support for NFT on Meta platforms such as Facebook and Instagram it may be inevitable. The plans will use blockchains such as Solana, Ethereum Flow and Polygon, according to the CoinDesk report. The pilot program is scheduled to start today.

It comes at a difficult time for the NFT market. Among the wider cryptocurrencies - and traditional assets - the NFT sell-offs saw market value plummet significantly. However, some new stocks being launched are still in really strong demand, which suggests that there is still an appetite for holding some of these assets. The impact of introducing the NFT Meta will not necessarily change the face of the market, but will likely help speed up the mechanisms. Any chance to facilitate access to technology for ordinary people is a good thing and helps future market potential.

Gucci will start accepting crypto

Fashion brand Gucci said that plans to accept cryptocurrency payments in some of their US stores. Customers will be able to pay in cryptocurrencies such as bitcoin, dogecoin, ethereum, litecoin, and shiba inu. The procedure will be launched at the Los Angeles branch as well as in New York. While the luxury brand's transition to cryptocurrency is unlikely to be a breakthrough, it's a notable moment to see a trend maker like Gucci engage with the space.

Although there have been frequent entries into non-financial transactions by luxury brands in the last year, they are still significantly delayed in paying for cryptocurrencies. Fashion brands like Gucci are making money as trendsetters, so it's going to be interesting to see if more fashion houses follow to keep up with this trend.