Bitcoin hits lowest level since late 2020

Bitcoin crashed to its lowest level since late 2020 amid fears of inflation accelerating in the United States.

While crypto-assets have not kept up with traditional assets such as stocks in the past, the connection between the two has become increasingly close in recent times. Today, the clearest signal yet is that crypto assets like bitcoin and ether are moving at the same pace as the stocks issued as inflation concerns pushed stocks down and prices plummet.

The reasons for this phenomenon are diverse, but much of it is due to institutional holders calibrating their risky assets in the same way, be it tech stocks or bitcoins. Monthly inflation in the US fell to 8.3% from 8.5% in April, suggesting that price increases have reached their ‘top’, but new highs of 8.6% reached last Friday sent stocks soaring. and shaking up crypto markets.

Bitcoin started the week strong, breaking above the $31,000 level, but was mostly trading around $30,000 later in the week. But over the weekend, it crashed to below $25,000 on the eToro platform, amid fears of inflation.

Similarly, Ether traded as high as around $1,900, before hovering around $1,800 later in the week. However, over the weekend, the price dropped significantly and is now trading around $1,300.

The Merge on track as developers announce “difficulty bomb”.

The next “merger” of the Ethereum blockchain is on track after completing the Ropsten network test. On Friday, developers involved in the blockchain transition announced that they would be setting up a “difficulty bomb” on the old proof-of-work network to encourage adoption of the new system.

The merger will essentially shift the Ethereum blockchain from a proof-of-work (PoW) model to a proof-of-stake (PoS) model. This will encourage cryptocurrency holders to join the network, and try to move away from the PoW model, as it is a very energy-intensive process.

Miners will be able to continue working in PoW, but the difficulty bomb will be introduced after launch to make the mining process much harder to stop them from doing so. This results in far fewer Ether tokens minted in the future, and it is suggested that Ether will eventually become a deflationary cryptocurrency thanks to the PoS model – essentially incentivizing holders to behave like savers.

However, there were concerns from the developers, with some suggesting that the difficulty bomb could slow down the Fusion process. Founder Vitalik Buterin predicted it would take place in August, or October at the latest.

Mastercard launches NFT payments

Global payment network company Mastercard is set to launch direct support for NFT and Web3 platforms on its cards. The company says it aims to bring customers to market and reduce product barriers through its payment solutions.

With the NFT and Web3 space growing rapidly, the addition of a large chunk of infrastructure like Mastercard cannot be underestimated. Access is arguably one of the key issues when it comes to emerging financial technologies like NFTs, and removing barriers to entry is a boon to this space.

The emerging NFT market has grown into a rich and diverse industry, and despite the low prices of recent months, the projects, ideas and innovations are still there, at work. When large institutional financial players such as Mastercard enter the sphere, it is a great moment. Mastercard already has options when it comes to other cryptoassets, but NFT and Web3 are still in their infancy in this regard.

The company has partnered with a number of notable players, including The Sandbox, which is available on the eToro platform under the SAND token, allowing customers to use Mastercard cards on various platforms to pay for digital goods. Mastercard says its partner companies will have generated some $25 billion in revenue by 2021.

Salesforce launches its own NFT platform

Cloud software publisher Salesforce is launching its own NFT platform called NFT Cloud. The company is a global leader in enterprise cloud computing software and has established itself as a leader in cloud computing in recent years, making an NFT platform a matter of course.

The platform allows the company’s corporate clients to create and manage their own NFTs and create engagement and brand access strategies. This is a classic company approach, which consists in offering tools to other companies opening up new technologies.

While there is already a significant market for NFT platforms and a range of ways to create them, the importance of companies like Salesforce offering these types of tools is that it opens up the market for companies that may not have enough in-house technology knowledge to create. their own product from scratch.

Consumers are clearly asking for NFTs that help them connect with the brands they love. Salesforce’s offering is a pretty compelling idea for its enterprise customers.

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