Bitcoin Suffers A Setback
Bitcoin, the world’s largest cryptoasset has suffered a setback after breaching $30,000 for the first time in nearly a year. The cryptoasset began last week trading in the $30,000 range but fell away over several days to trade around $27,500 over the weekend. It is currently moving around $27,300.
Ether similarly saw falls away from recent highs. Having begun the week just shy of $2,100 it plunged on Wednesday then trended downward further into the weekend, now currently trading just above $1,800.
Both cryptoassets have erased nearly all of their gains made in the past 30 days as fears ripple around investors over the implications for a global recession. While such a price setback is uncomfortable for many, we’re yet to see bitcoin retest more precipitous levels that would suggest the recent rally is finished.
SocGen launches stablecoin
Major French banking institution Societe Generale (SocGen) has launched a euro-backed stablecoin called SG-Forge. The bank has launched its own stablecoin with a view to giving its customers greater access to digital assets, with what it calls a “robust banking-grade structure” to underpin it.
Stablecoins have come under fire in recent times as some high-profile failures have rocked the broader crypto market. But fully asset-backed stablecoins have by and large weathered the storm.
Stablecoins form a really important part of the digital asset ecosphere as they provide a stable-value asset starting point for investors who wish to enter the crypto market without dipping in and out of fiat. We’re likely to see more stablecoin launches from major institutions such as SocGen as they’re a key bridging financial technology for the market.
Shapella sees institutional ether interest skyrocket
As the Shapella upgrade beds in, some key trends are beginning to emerge for the Ethereum network.
Overall we’ve seen a net withdrawal of staked ether. According to data from IntoTheBlock, some 1.37 million ether tokens have been withdrawn, while 650,000 have been deposited, giving net outflows of around 720,000. It is likely for now that this net drawdown in tokens is largely a factor of investors taking back assets that have been staked for some time.
What is perhaps more intriguing from IntoTheBlock is the changing makeup of depositors. Institutional staking providers have seen a notable increase in deposits where others have seen outflows.
Taken together these trends suggest that the face of staking is shifting to take on a more institutional nature. We’ve seen this kind of trend before which can certainly underpin a different kind of market dynamic. It will take time however for the greater long-term trends to feed through.
Bitcoin real estate market launches
A new real estate market where bitcoin is accepted as payment has been launched in the US. Currently available in Texas only, the platform - MyEListing - says it intends to expand to other states soon.
This isn’t the first time real estate markets have accepted bitcoin as payment for physical property, but it is a novel attempt to create a fully-functioning market around the idea, integrating payment standards for the cryptoasset.
The long-term vision for bitcoin is to replace fiat currency and become the de facto unit of value for everyone. While we’re a long way from that point, the creation of new markets that value other assets in bitcoin is an important step in that journey.
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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...
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