After a strong bullish momentum in the crypto-asset market that brought the price of BTC to USD 31,000, the market finally corrected showing as correct some predictions from analysts who indicated that there was not enough strength to continue rising despite all the positive fundamental news for cryptocurrencies.
In this context, Simon Peters, crypto asset analyst at multi-asset trading platform eToro, He has spoken with Cointelegraph in Spanish about the current crypto asset market, and shared some relevant news about it that may set trends regarding the adoption that may occur in the following years.
“The crypto asset started last week trading in the $30,000 range, but fell over several days to trade around $27,500 over the weekend. Currently, it moves around $27,300”Peters commented.
On the other hand, regarding Ether, it must be remembered that after the unlocking of Ethereum shares, the reaction was quite moderate, and according to Peters, the price of Ether rose that weekend, but more due to macroeconomic optimism than to the sensitivity of investors to changes in the grid. On this occasion, the analyst stressed that this cryptoactive also suffered falls from its recent highs. “After starting the week just below $2,100, it tumbled on Wednesday and then trended lower over the weekend, currently trading just above $1,800”he mentioned.
“Both crypto assets have lost almost all their gains from the last 30 days, as investors fear the consequences of a global recession. Although this price pullback is uncomfortable for many, we have yet to see Bitcoin re-touch more extreme levels that suggest the recent rally is over.”Peters noted.
SocGen launches a stablecoin
Likewise, among some of the most remarkable news of the last week, Peter has mentioned that Major French banking institution Société Générale (SocGen) has launched a euro-backed stablecoin called SG-Forge. According to Peters, the bank has launched its own stablecoin with a view to offering its clients greater access to digital assets, with what it calls a “robust bank-grade structure” to back it up.
“Stablecoins have come under fire of late, as some high-profile failures have rocked the broader crypto market. But fully asset-backed stablecoins have weathered the storm.”he mentioned.
“However, stablecoins are a very important part of the digital asset ecosphere, as they provide a stable starting point of value for investors who want to enter the crypto asset market without going in and out of the fiat”he added.
In this sense, Peter warns that we are likely to see more stablecoin launches from large institutions like SocGen as they are a key bridging fintech to the market.
Institutional interest in Ether skyrockets in Shapella
In Peter’s opinion, As the Shapella upgrade takes hold, some key trends for the Ethereum network begin to emerge.
Despite, as noted last week that the actual value of ETH holdings has only risen slightly based on CryptoQuant data, This week Peters has reported that a net withdrawal of staked Ether has been generated, of which he pointed out also has a relative proportion of staked ETH that is much lower than that of competing crypto assets.
“According to data from IntoTheBlock, some 1.37 million Ether tokens have been withdrawn, while 650,000 have been deposited, resulting in a net outflow of about 720,000. At the moment, this net token reduction is likely largely due to investors pulling back assets that have been staked for some time,” Peters said. adding that what is perhaps most intriguing about IntoTheBlock is the change in the composition of depositors. “Institutional holding providers have seen notable increases in deposits, while others have seen outflows”he stressed.
On the whole, These trends suggest that staking -Peters mentioned- is acquiring a more institutional character, In his opinion, a type of trend that has already been seen, and that can certainly underpin a different type of market dynamics that will take long-term trends to manifest.
Launch of the Bitcoin real estate market
As for the United States, The eToro analyst mentioned that in the North American nation, a new real estate market has been launched in which Bitcoin is accepted as a form of payment through the MyEListing platform, which is only available in Texas, but they have already declared they intend to expand to other states shortly.
“This is not the first time real estate markets have accepted Bitcoin as a form of payment for physical property, but it is a novel attempt to create a fully functioning marketplace around this idea, integrating payment standards for the crypto asset”said Peters.
“Bitcoin’s long-term vision is to replace fiat currency and become the de facto unit of value for the entire world. Although we are a long way from that point, the creation of new markets that value other Bitcoin assets is an important step on that path.”he added.
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