RJ Pierce, Tech Times 28 January 2022, 07:01 am
Crypto prices have gone down an insane amount in recent times, sending a lot of investors on a spiral to liquidate their assets before everything crumbles. But even if the world is accepting these digital currencies more and more, there’s not a lot of confidence that their prices would be boosted.
(Photo : Executium via Unsplash)
This was the conclusion of Goldman Sachs, which believes that investors should remain “skeptical” that cryptocurrency adoption could result in higher prices overall, as reported by Bloomberg.
They were also mentioning how several central banks around the world (as well as the US Federal Reserve) are moving to tighten their monetary policies, which basically helped cause the crypto market to shrink to just around half of its peak ($1.76 trillion from over $ 3 trillion) late last year.
This news comes after the recent big crypto price crash, which saw the likes of Bitcoin and Ethereum go down in value by roughly half.
As of the moment, Bitcoin stands at around $36,500 US, a far cry from its peak of almost $70,000 in November. Ethereum, on the other hand, is down to roughly $2,400, from its peak of $4,300.
But it wasn’t all bad. It seems that prices have rebounded just a bit, according to Mint. This included both Bitcoin and Ethereum alongside other coins like Dogecoin, Solana, XRP, Stellar, Cardano, Polygon, and Avalanche.
All of these coins traded with slight gains over the past 24 hours (before the time of this writing), and the only ones that declined were Terra and Uniswap.
There were numerous reasons for the massive price crash, but most analysts agree that it is due to how governments around the world have been viewing cryptocurrency as a whole.
For instance, some point to the Russian Central Bank’s proposal to ban all crypto trade, as well as China’s hard crackdown on crypto mining, trading, and operations. These situations basically forced miners and investors to move their trade elsewhere, where regulations are a bit lighter.
(Photo : STR/AFP via Getty Images)
This photo taken on April 1, 2021 shows a worker adjusting cryptocurrency mining rigs at a cryptocurrency farm in Dujiangyan in China’s southwestern Sichuan province.
So read: With The Recent Crypto Price Crash, Is It Still Worth Investing In Cryptocurrency? Here’s What You Should Know
Adoption Is Still Growing Despite Decrease In Crypto Prices
Cryptocurrency used to be a fringe thing, with only a handful of people dabbling in it. But as per a recent survey by Pew Research, more people have been entering the fray, especially in the United States.
They revealed that at least 16% of Americans have invested in some form of crypto, with most of them being younger men aged between 18 to 29 years old. This data comes from a total of 10,731 adult individuals who Pew recruited at random.
As for testing, the crypto firm Triple A has discovered that there are now over 300 million cryptocurrency users globally. The Asian continent leads the entire world in terms of adoption (160 million users), followed by Europe (38 million), Africa (32 million), and North America (28 million).
(Photo : Pexels)
Related: Top 10 Most Promising Crypto Projects in 2022
This article is owned by Tech Times
Written by RJ Pierce
ⓒ 2021 TECHTIMES.com All rights reserved. Do not reproduce without permission.