Bitcoin (BTC) tried to stand firm after the violent fluctuations over the weekend. Although it once fell to US$19,800 in the early morning of this (21), it quickly pulled back and continued to fluctuate around US$20,000, now at US$20,628; Ether (ETH) also continued to fluctuate around $1,100, with a tentative price of $1,131 at the time of writing.
The ETH wallets of more than 100 encrypted funds have shrunk by 85% in the past three months
But while the carnage in the market appears to be showing some signs of slowing down, investors have suffered heavy losses. According to a tweet on the 19th by Larry Cermak, vice president of research at The Block, after analyzing the Ethereum wallets of more than 100 cryptocurrency funds, he found that the value of the assets held by these funds has shrunk by about 85% in the past three months.
“Total holding value in March: $14.8 billion, total holding value now: $2.2 billion.”
Cermak further explained that these crypto funds may remit assets to exchanges for dumping. He did not calculate this part of the difference, so the actual loss of these funds may not be so large, but he believes that the data changes of these wallets are still worthy of attention. , indicating that wealth in March is mostly wealth on paper.
Markets likely to keep falling ahead of Fed slowdown
And if you look at the overall economy, analysts seem to believe that the Federal Reserve will not ease monetary policy in the short term in order to combat historic inflation, which means that the market may still have room to fall. Bloomberg analyst Eric Balchunas said: “The Fed is serious this time, and in every sell-off in the past, they would step in if the market really needed it, but not this time… the market will have to learn to live without the Fed.” It’s going to be painful to live without it. It’s like quitting heroin – the first year will be tough.
The “Decrypt” report quoted analyst Alex Kruger as saying that the Fed is likely to remain hawkish throughout 2022, pushing asset prices lower, and the S&P500 may not bottom until the second half of the year, about 10% lower than current levels. to 15%, and Bitcoin will also be affected.
In the face of the US Federal Reserve’s (Fed) interest rate hike expectation, the possibility that the virtual currency market will remain sluggish in the future is very high. Therefore, for investors, it is a more rational choice to either choose to wait and see or invest in mining machines.
Post time: Aug-16-2022