Cryptocurrency Investing Is Still Risky

The cryptocurrency market has had another extremely tumultuous week this week. Bitcoin eventually awoke and crossed the $55,000 mark, kicking off a period of enormous rallying. The majority of other cryptocurrencies have followed the largest cryptocurrency’s lead.

Ether, the largest altcoin, has surpassed the $3600 barrier. According to a statement sent to customers by JP Morgan, this price action driven by institutional investors seeking a hedge against inflation. It appears as though institutional investors are beginning to recognize BTC’s advantages over gold. Polkadot, one of the most popular cryptos, has fared very well during recent market downturns. Polkadot has yet to begin bidding on its parachain slot auctions. Once that occurs, DOT is sure to reach dizzying heights.

The bearish period was also active in terms of macro news affecting the bitcoin market. According to reports, some hedge funds have recently raised their bitcoin holdings.

In a stunning reversal of fortune, the US Federal Reserve announced no plans to ban cryptocurrencies. It instills hope that certain policymakers in the United States truly understand the enormous potential that cryptocurrencies and blockchain technology will have in the not-too-distant future. The US Department of Justice announced establishing a nationwide cryptocurrency enforcement unit to combat bitcoin-related offenses.

How it affects the ecosystem?

The ecosystem of NFTs is gaining steam. In Q3 2021, the NFT sales volume surpassed $10 billion. That is a staggering nine hundred percent increase quarter over quarter. Coinbase, one of the largest cryptocurrency exchanges, has admitted that hackers breached their systems and compromised over 6,000 accounts. Coinbase recently sent a letter to all 6,000 clients who may have impact.

The crypto industry continues to be impacted by influencers’ social media initiatives. Elon Musk has disrupted the market’s momentum yet again by tweeting a picture of his pet dog, Floki. This incident alone boosted the value of all Floki-themed cryptocurrencies. Shiba Inu, a meme currency, was one of the week’s top gainers. This type of market manipulation approach continues to alarm many long-term investors.

The week’s top five cryptocurrency gainers include the following:

  1. Shiba Inu, SHIB increased by around 275 percent
  2. Fantom, FTM: 56.69%
  3. KLAYTN increased by a whopping 37.38 percent
  4. SIA Coin: 36%
  5. Harmony’s SINGLE token: 31%

This week’s top five cryptocurrency losers:

  1. eCash: down 11.5 percent
  2. dYdX: 10.4%
  3. Avalanche, the AVAX token: 9.42%
  4. Huobi token price decreases by 8.2 percent
  5. XDC Networks: 7.3%

cryptocurrencies: Market manipulation technique in meme coins continues to worry investors – The Economic Times (indiatimes.com)

Cryptocurrency: Advanced Investable For 2021 – All Coin Index

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