Because of an increase in coronavirus cases across the globe, investors are concerned that this will slow the economic recovery. As a result, cryptocurrencies on Wednesday were generally lower, coinciding with the decline in global markets.
Bitcoin (BTC-USD) traded at $45,250 (£32,894), is down 3.5 percent from its previous high. Meanwhile, Ethereum (ETH-USD), the second-largest cryptocurrency by market capitalization, fell 6.4 percent to trade at $3,048 per unit of currency.
Dogecoin (DOGE-USD), on the other hand, had lost traction over the weekend, as it has dropped 11 percent and is now trading at $0.29.
Is there really a crypto ‘revolution’?
Now, there is evidence that the equity market “made an impact on the cryptocurrency markets, as a result of which digital currencies are undergoing price correction,” says Naeem Aslam, Ava Trade’s chief market analyst.
“In the next few days, the price movement of cryptocurrencies is expected to demonstrate strength as they have been challenging their resistance levels. A breach of these levels would catapult digital currencies so much further.”
He advised the investors to be wary and bear in mind that the cryptocurrency sector is experiencing a “revolution” and that many organizations are working hard to utilize properly digital assets and make them a reality as soon as possible.
Visa (V), for example, is trying to link the worldwide electronic banking system to technology that uses blockchains.
As of now, 54 fintech firms have engaged with the payment company to support its goal of making the transaction processes simple for customers while utilizing digital currencies as a form of payment.
In 2021, debit cards that are crypto-connected aided in over $1 billion in transactions.
“This trend only shows that cryptocurrencies have tremendous potential, and as a response, this is a perfect moment for investors to snap up some deals before the resurgence of crypto prices,” Aslam added.
Companies incorporate blockchain
Walmart (WMT) is also looking for a bitcoin specialist to help create a blockchain strategy suggesting that the company is adapting well to the emerging crypto-trading era. Based on a job advertisement off Walmart’s website, the position will be responsible for creating the retailer’s “product roadmap and digital currency strategy” as well as finding “crypto-related investment and collaborations.”
Meanwhile, the world’s biggest cryptocurrency exchange, Binance, has also announced the appointment of Greg Monahan to be its worldwide money laundering reporting officer. He served as a former US Treasury criminal investigator.
Monohan further stated that he will now focus his efforts on extending Binance’s global anti-money laundering and investigative programs, as well as improving the organization’s relationships with regulatory and law enforcement organizations across the world.”
The decision came as authorities across the globe are increasing their scrutiny among the business and the crypto sector.
To make things far worse, the industry recently failed to secure the modification in tax reporting requirements in the United States’ infrastructure bill. Just last week, there was an approval to the legislation to establish extensive supervision of digital money.