Those who hoped and hoped for a de-correlation with equity indices, Nasdaq in particular, see the convictions matured in recent months waver. David Duong, Head of Research at Coinbase Global Inc., said that there are many adverse factors facing cryptocurrencies this year, including more aggressive central bank policies, as well as uncertainty about the path of global economies.
In addition to the stock exchanges, these are also complicated days for digital currencies. In the last 8 days, bitcoin has made seven drops, with a value plunged from over 39 thousand dollars to 35 thousand, with a passage to 32 thousand, the lowest value since last July. In the last month, the prices of the best known and most widespread cryptocurrency are went down by 17%, year to date of 24%. Similar drops also for EtherDogecoin (- 11% in the last month), Litecoin (- 16%) and more marked for Cardano (- 28%). Who hoped and hopes for one de-correlation with stock indices, Nasdaq in particular, sees the convictions matured in recent months waver. It should be noted that digital currencies are spreading after the 2008 financial crisis, in an anomalous monetary context, characterized by abundant liquidity. Now that central banks are starting to reduce the amount of money in circulation, it is getting stronger again financial product hierarchy. Apart from the currency, dollar in particular, all the others are promises of payment of money (bonds, shares, derivatives, etc.).
When monetary conditions are loose, this hierarchy is attenuated. When they tighten it restores itself. For digital currencies, this phase becomes a sort of litmus test to verify how they behave in a less expansive monetary phase that they have never experienced so far. As reported by the Bloomberg agency, according to Coinglass data, approx $ 475 million in long positions on bitcoins were liquidated only yesterday. David Duonghead of research at Coinbase Global Inc., said there are many this year adverse factors facing cryptocurrencies including more aggressive central bank policies, as well as uncertainty about the path of global economies.
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Digital currencies follow the equity markets with drops of more than 10% in one month. Bitcoin under $ 32,000 – Il Fatto Quotidiano
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