Investors in Bitcoin and cryptocurrencies took a beating this week, with $ 50 billion removed from the mix of the world’s cryptocurrencies.
The value of bitcoin, which hit $ 12,000 consistent with bitcoin before this week, fell to just under $ 10,000 before bouncing to around $ 10,500, reflecting the ups and downs of the US stock market.
Before the wild fluctuations in bitcoin prices, Michael Novogratz, a former billionaire of hedge funds who became an investor in cryptocurrencies and became an investor in cryptocurrencies, warned that the “speculative frenzy” of cryptocurrencies is becoming active.
“I try to stay as positive and positive as you can imagine about cryptography, because it’s actually early in the cycle, but I notice that there are other things in the markets that worry me,” Novogratz told Bloomberg earlier.of what seems a more sensible.’
Along with Tesla’s relaunch-driven uptick, brave investors have invested billions in new cryptocurrency projects in recent months, with many decentralized financing chips (DeFi) promising dizzying rewards.
Many tokens similar to DeFi platforms have crashed in the last two days, with the taste of the week, Sushiswap, wasting more than its value.
“High-flying DeFi coins were the hardest hit in yesterday’s sale, and many fell 20% or more compared to bitcoin over the 24-hour period,” Tim Plakas said of Galaxy Digital Trading by email.
“It was almost a mirror symbol of what we saw in inventory markets, with many popular tech names that were greatly affected by the change in sentiment.”
Despite what he calls a “speculative frenzy” that has sprung up in months, Novogratz remains positive about long-term bitcoin.
“I am convinced that in ten years, the ecosystem around bitcoin and cryptocurrencies, the whole area, will be several times larger than it is today,” said Novogratz, who describes the emerging crypto area as “a sandbox. “to be placed in the” big cube of venture capital. “
“The cryptocurrency is here forever,” he added. I couldn’t say that in 2017 or 2018, but that sentence comes with an exclamation mark this year.”
I am a journalist with significant experience in the fields of technology, finance, economics and business around the world.As founding editor of Verdict.co.uk, I pointed out that