Bitcoin and altcoin gradually lose value; in Brazil, is stagflation imminent? – Market Summary

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Bitcoin Cup This Friday (10) the cryptocurrency market is not out of harm's way, strolling along the wild side, bitcoin (BTC), ethereum (ETH)…

Bitcoin and altcoin content gradually lose value; in Brazil, is stagflation imminent? – Market Summary first appeared in Cointimes .

Bitcoin Cup

This Friday (10) the cryptocurrency market is not out of harm's way, wandering on the wild side, bitcoin (BTC), ethereum (ETH) and most other altcoins continue to gradually lose value over the past 24 hours, according to CoinGoLive .

Check out the prediction of Cathie Wood, founder, CEO and CIO of Ark Invest in the Market Summary, for the price of bitcoin. See also Copom's strategy in the face of imminent stagflation.

Bitcoin Ethereum and other cryptos on CoinGOLive
Cryptocurrency Ranking – Source: CoinGoLive.com

Is Bitcoin in danger?

The leader of the cryptocurrencies walks on the wild side . It traded at $58,000 last week when it plummeted Saturday morning.

Despite his initial success in reclaiming some ground, as it approached $50,000 a day later, he was unable to flee from danger. The most notable move of Bitcoin bulls resulted in a rise to $52,000 on Tuesday, but the bears did not allow for further increases.

Instead, they pushed the cryptocurrency south by a few thousand dollars, and the BTC remained mostly down. In the last 24 hours, bitcoin has challenged the $50,000 level once again, but to no avail.

The subsequent rejection took him to just over $47,000 hours ago. As of now, bitcoin has regained some ground and is now above $48,200, but its market value has dropped to around $910 billion.

Cathie Wood's Forecast

With the calm of someone who understands bitcoin market cycles and speaking to CNBC on December 9, Ark CEO Cathie Wood said that cryptocurrencies are present in small amounts in institutional portfolios, but that "institutions are moving forward" in Bitcoin and derivatives.

She said that cryptocurrencies are a new asset class with a “very different correlation compared to other asset classes”, and only real estate comes close. She added:

“Institutional managers need to look at new asset classes that are evolving and that have low correlations. This is the key to diversification and the Holy Grail in terms of asset allocation. ”

Also read: Fund managers increasingly prefer bitcoin to gold; see who are

She then said that if institutions switched to BTC allocating about 5% to their portfolios over time, it could add $500,000 to the asset price.

Interest increase in the country

Markets underwent a correction following the streak of gains seen since Monday. Here in Brazil, the Ibovespa did not escape the correction, after taking a five-session high, the index had a retreat pressured by the harsher-than-expected tone of the Central Bank regarding the country's interest rate hike.

"With a Selic of 11.75%, the Copom arrives with inflation at the target in 2023, but the balance of risks remains bullish in relation to the fiscal one, that is, there is a high probability of inflation being higher than the actual model projects”, says Júlio Fernandes, manager of macro strategies at XP Asset Management.

Among the main points of the Copom decision, the board's indication that it will persevere in its strategy until there is a consolidation of the disinflation process and an anchorage of inflation expectations around the targets was one of the most highlighted by analysts.

Société Générale, for example, raised its forecast for the Selic from 11.25% at the end of the cycle to 11.75%, while Morgan Stanley started to expect the basic interest rate to end the cycle at 12.25%, and not more by 11%.

According to the economist and advisor at the Mint, Fernando Ulrich, "If the Copom fulfills yesterday's signal, in Feb/22 we will have a Selic rate of 10.75%."

The economist pointed out that in 12-month windows, this means the biggest monetary tightening in the history of the real since the inflation targets (1999), with an 8.75% increase in interest rates. About the Copom decision, he concludes: “There is no greater admission of error than this one”.

imminent stagflation
Target for Selic and Monetary Policy Cycles – Source: @fernandoulrich

altcoin roller coaster

Ethereum (ETH) and most other altcoins continue to gradually lose value over the past 24 hours, according to CoinGoLive. The second largest cryptocurrency has been riding a roller coaster these past few days. ETH traded at nearly $4,700 last Friday, when the entire market crash lowered it to nearly $3,500.

It recovered very well, but negative sentiment in the markets returned and pushed ETH to around $4,100 hours ago. As of now, ETH is above that line. The rest of the top ranked coins move similarly.

The result of the main altcoins in the last 24 hours is as follows: Ethereum (-4.93%), Binance Coin (-2.67%), Solana (-5.44%), Cardano (-4.01%), Ripple (-6.20%), Polkadot (-5.90%), Terra (-3.83%), Dogecoin (-4.95%), Avalanche (-2.81%) and Shiba Inu (-4 .69%).

According to CoinGoLive, the market capitalization of all crypto assets dropped to around $2.37 trillion this Friday.

Follow the crypto market news on the Cointimes Telegram group ( log in ) and have a great day of trading.

Bitcoin and altcoin content gradually lose value; in Brazil, is stagflation imminent? – Market Summary first appeared in Cointimes .

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