Crypto Market Analysis: All to Know About It These Days

tl;drCryptocurrencies are digital types of currencies that can be used to buy services and goods. These currencies use online ledgers with strong cryptographic encryption to secure online transactions. The year 2021 has been an unforgettable year for the cryptocurrency world, seeing several ups and downs, with volatility continuing in September as well. The cryptocurrency market continued its downfall, with September marking a turbulent trend for investors. News released in October shows that digital currencies are gaining more attention day by day, and significant progress is being made in various areas, including legislation, mining, and purchases. Overall, based on the recent market trends, it seems inevitable that two of the hottest areas of investment are ETF and NFTs.
Crypto Market Analysis: All to Know About It These Days
Crypto Market Analysis: All to Know About It These Days
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Cryptocurrencies are digital types of currencies that can be used to buy services and goods. These currencies use online ledgers with strong cryptographic encryption to secure online transactions. Digital or virtual currencies are secured by cryptography, a highly-secured encryption method that makes it nearly impossible to counterfeit or double-spend. Much of the interest in these currencies is to gain profit, so it is important to be aware of what is happening in the market.

An Overview of Cryptocurrency Market in October 2021

The year 2021 has been an unforgettable year for the cryptocurrency world, seeing several ups and downs, with volatility continuing in September as well. The cryptocurrency market continued its downfall, with September marking a turbulent trend for investors. News released in October shows that digital currencies are gaining more attention day by day, and significant progress is being made in various areas, including legislation, mining, and purchases.

Significant Political, Social, and Financial Events in Cryptocurrency Market

During the last month, one of the most important events was some countries’ positive signals about cryptocurrency services in the financial sector. Switzerland's financial markets supervisor said on September 29 that it had approved the country's first fund that invests primarily in crypto assets. The Crypto Market Index Fund is restricted to qualified investors and categorized under "other funds for alternative investments" with particular risks, the Swiss Financial Market Supervisory Authority (FINMA) said in a statement.

On the other hand, after months of waiting, the Bank of Spain has issued instructions and guidelines on how to register with the central bank to offer crypto-related services in the country. Moreover, a top U.S. bank regulator said that the U.S. officials are looking to provide a more straightforward path for banks and their clients looking to hold cryptocurrencies to keep control over the fast-developing asset.

However, the decentralized nature of digital currencies, i.e., unlike traditional currencies, they aren't backed by any institution or government authority, is a significant point for many crypto enthusiasts. If you think so, we should say that JPMorgan's Jamie Dimon has the same idea! He blasts Bitcoin as "worthless" at a conference. Jamie Dimon, JPMorgan Chase & Co chief executive, announced at a conference that governments are going to regulate cryptocurrencies and that he personally believes that bitcoin is "worthless." He added that "No matter what anyone thinks about cryptocurrency, the government is going to regulate it. The government is going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax".

American Lawmakers and Government Agencies are Interested in Cryptocurrencies!

U.S. lawmakers and government agencies have shown interest in cryptocurrency regulation. The U.S. Federal Reserve Chairman Jerome Powell said he has "no intention" of banning cryptocurrency just days after Security and Exchange Commission Chairman Gary Gensler expressed concern about investor safety of crypto transactions. This good news came just a week after China banned cryptocurrency transactions altogether. But in spite of all the ups and downs, a few key themes have emerged on the new U.S. cryptocurrency regulation. As an example, we can mention stopping cryptocurrency crime and tax evasion, regulation of stable coins, and the potential for investment vehicles like crypto ETFs and other funds. Moreover, the White House is considering a wide-ranging oversight of the cryptocurrency market to fight against the growing danger of ransomware and other cybercrime.

New Mining Approaches of Cryptocurrencies

Recent news indicates that everyone is looking for more optimal and environmentally-friendly mining approaches. For instance, Square Inc. Chief Executive Officer Jack Dorsey said the Fintech Firm is looking to build a bitcoin mining system based on custom silicon and open source for individuals as well as businesses. One mining operation in central New York came up with a novel solution that has alarmed environmentalists. It uses its own power plant. Also, on October 2, 2021, El-Salvador’s President announced volcano-powered bitcoin mining. 

It is worth considering that the United States has overtaken China to account for the largest share of the world's bitcoin mining after Chinese authorities banned the activity earlier this year, causing miners to shut up shop or move to other countries.

Top Businesses Embracing Cryptocurrencies

As an example of cryptocurrencies gaining public attention, Walmart, a giant retailer, said it has kicked off a pilot program allowing shoppers to buy bitcoin at Coinstar kiosks in its stores. Walmart Inc, on October 21, said customers at some of its U.S. stores would be able to purchase bitcoin using ATM-like machines installed by Coinstar. Coinstar, known for its machines that can exchange physical coins for cash, has partnered with CoinMe, a digital currency exchange to let customers buy bitcoin at some of its kiosks.

The story is not finished yet! 

Tesla is reconsidering accepting crypto payments again. Tesla, the world's leading electric vehicle manufacturer, is exploring the possibility of accepting cryptocurrencies for its products again. This latest development comes after the company suspended the BTC payment option earlier this year. Moreover, Mastercard is set to offer Bitcoin rewards and purchases. Thousands of banks and millions of merchants on the Mastercard payment network are set to integrate cryptocurrency into their products. Overall, based on the recent market trends, it seems inevitable that two of the hottest areas of investment are ETF and NFTs:

ETFs

After hitting an all-time high above $67,000, Bitcoin (BTC) has again come under pressure. However, optimism around Bitcoin remains high because of the Bitcoin futures ETF launching in the previous week by Valkyrie Investments. Valkyrie's leverage Bitcoin futures ETF will list on Nasdaq and would be able to hold derivatives, such as futures and options. After spreading this news, Crypto fund inflows hit a record $1.5B as Bitcoin Futures ETFs go live. 

NFTs

The data from market tracker DappRadar indicate that the sales volumes of non-fungible tokens (NFTs) reached $10.7 billion over the third quarter of 2021, more than eightfold from the previous quarter, as the frenzy for crypto assets reached new highs.

Conclusion

All in all, it is undeniable that the cryptocurrency market is unpredictable, and any regulations and policies can influence the way the market is going. However, the recent news shows that cryptocurrencies are finding their place in the world more than yesterday and getting more attention from governments. If you want to not fall behind in this market, check Cryptologi.st to be updated on the NFTs and ETFs.


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