Recent Bitcoin Weakness doesn’t Deter Blockchain Investment – Blockchain News, Opinion, TV and Jobs

Marcus Sotiriou, Market Analyst at Listed Digital Asset Broker global block (TSXV: Block).

Bitcoin has fallen to $28,000 and is currently at a critical support level. From a technical analysis point of view, this is a pivotal moment for Bitcoin. If $28,000 fails to hold the daily timeframe, this marks a return to the range it just breached (the 10-month consolidation). $28,000 is also the summer 2021 low, further confirming its importance.

The recent Bitcoin price drop was partly due to high UK inflation data earlier in the week. UK headline CPI YoY at 10%, above forecast 9.8%, core CPI at 6 YoY % is exceeded. Retail price inflation also beat consensus expectations. This is the 10th straight month that the UK consumer price index has been above 10%.

However, the UK’s real yield curve remains very low and current monetary policy may not be tightening enough. With the UK’s real GDP still below Q4 2019 and the unemployment rate rising to his 3.8%, demand is already stagnant.

The combination of persistently high inflation, stagnant demand and high unemployment means the UK economy could soon enter stagflation, where high inflation and low growth occur simultaneously.

However, institutional investment in blockchain businesses continues to flourish, especially in Africa. According to his latest CVVC Africa blockchain funding report, in 2022 he will invest $474 million in African blockchain businesses such as digital asset brokers, up 429% year-on-year. . Over 50% of his funds were allocated to categories such as digital asset brokers, custody and exchanges, raising over $250 million. Total funding for companies such as digital asset brokers in Africa stands at 29, four more than the number settled in 2021.

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