TechDigits

Tech news
Friday, Feb 23, 2024

Cryptos Not Out Of Danger Zone Yet

Cryptos Not Out Of Danger Zone Yet

Cryptocurrencies, which have been trending up in recent weeks after a sustained crash that had wiped their market value by $2.0 trillion, are not out of the danger zone yet, analysts say.
Bitcoin and ethereum, the two largest cryptos, are still sitting nearly 50 per cent below their all-time highs in November 2021.

Since late June, Bitcoin has been trading at around $20,000 to $24,000. While it has shown attempts to push higher, it has strugglled to create a significant breakout. But there are now signs of a small rally, crypt analysts say.

“BTC continues to show signs of bullishness mainly due to higher highs and lows being formed,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said.

Critics says the crypto crash — from $2.9 trillion to less than $900 billion in recent months has reinforced the perception that markets for the digital currency are little more than global casinos operating with virtually no rules or accountability. Cryptos are still used primarily as an investment vehicle as it is not widely accepted as payment for goods and services, they argue.

After crashing below $20,000 in recent weeks from its peaks of $65,000 in November 2021, bitcoin started a recovery to hit $24,000 even as experts debate whether it will see further declines similar to 2013 and 2017. Ethereum, the second most valuable digital currency, has seen more gains than bitcoin over the last few weeks and was trading above $1,900.

The crypto market could still experience one more drastic sell-off before it is on the road to recovery, says a senior market analyst.“Between a collapse in the market, layoffs and the ongoing liquidity crisis in the crypto industry, prices will likely remain low for the foreseeable future, such as they did in between early 2018 and mid-2020.”

Some experts say another crypto winter is already setting in. Between a collapse in the market, layoffs, and the ongoing liquidity crisis in the crypto industry, they say prices will likely remain low for the foreseeable future, such as they did in between early 2018 and mid-2020.

“Crypto assets are very volatile, in part because there's so much uncertainty about which crypto technologies are likely to be the most useful in the long run—for example, which ones the market may coordinate on for mediums of exchange, and a lot of the applications are technological in nature and novel (or at least unproven). And so, there's a lot of uncertainty and a lot of the value of return is downstream, just like with tech companies,” says Harvard Business School Professor Scott Duke Kominers.

How vulnerable are crypto investors, particularly the retail-level amateur investors amid a flurry of bad news involving high-profile firms like bitcoin, terra, and Celsius? Experts believe there is a need for more consumer protection in this space across the board.

“There needs to be more transparency and not just transparency at the abstract level, but the technology needs to be made transparent for consumers in ways that they can understand. This is a problem across crypto, and it's one that companies are starting to try and solve,” says Kominers.
Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×