Sunday, 15 May 2022

Bitcoin and Ethereum had a tough week, but derivatives data reveals a silver lining, will they recover?

This week, the cryptocurrency market suffered a sharp drop in valuation after Coinbase , the leading US exchange, reported a quarterly net loss of USD 430 million and South Korea announced plans to introduce a 20% tax on cryptocurrencies.

Bitcoin (BTC) bounced 18% from a low of USD 25,400 to the current level of USD 30,000 and the price of Ether (ETH) also had a brief rally to USD 2,100.

In the case of Ethereum, it is affected internally, as several of its most important projecots such as UniSwap, Axie Infinity and Shiryo for example, have also seen their internal economics affected, but as is well known, a Bitcoin shakeout, shakes the entire crypto ecosystem.

At its worst, the total cryptocurrency market capitalization faced a 39% drop from USD 1.81 trillion to USD 1.10 trillion in seven days, which is an impressive correction even for a volatile asset class. The last time a similar sized decline in valuation was seen was in February 2021, creating bargains for risk lovers.

submitted by /u/Kelly76543
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source https://www.reddit.com/r/btc/comments/upmqpz/bitcoin_and_ethereum_had_a_tough_week_but/

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