Bitcoin is up 1% after falling to $34,000 on Saturday. The last time it was that low was July of 2021.
“Unfortunately, crypto is still interrelated to stocks and the stats of stock market will continue to affect the crypto market as well,” CEO and co-founder of Mudrex, Edul Patel, said to the Economic Times. “Also, several firms are still hovering around billions, crypto still have a chance to bounce back and it doesn’t fall from the current state.”
Crypto is behaving very much like stocks do, reacting to the same global pressures and trends. There are plenty of potential rallying events on the horizon. Intel has plans to launch a bitcoin mining chip, and the Biden administration is planning to announce a government-wide strategy for digital assets. El Salvador continued to purchase bitcoin despite the falling prices, and the widespread acceptance of cryptocurrencies by establishment financial and political entities continues. Crypto seemed to be on an upswing on Monday morning after a rocky week.
There are still some obstacles ahead, though they could turn into opportunities. If Russia goes forward with an outright trading and mining ban of cryptocurrencies, that could drive miners to the U.S. and broaden the incentives for further mainstream acceptance. The conflict in Ukraine might further incentivize the world to zag where Russia chooses to zig.
There’s a real opportunity to buy into crypto exposure on the dip, and the VanEck Digital Transformation ETF (DAPP) presents investors with exposure to crypto equities. Equities tend to be more stable than the individual currencies and come with the advantage of not being tethered to the performance of any one coin.
For more news, information, and strategy, visit the Crypto Channel.
