In June, the global cryptocurrency market experienced a significant slump after crypto lending company Celcius Network froze transfers and withdrawals due to “extreme conditions.” Although the crypto decline had begun as early as November 2020 when Bitcoin saw its value fall below $20,000, the market nearly collapsed in June as a majority of cryptocurrencies saw their values drop by more than 90%.
Bitcoin, which is the largest and most popular cryptocurrency in the world, dropped in value by more than 70% while Ethereum fell past $1,000. Crypto prices began to level out after the drop in June, with Bitcoin leveling out at $23,000 to $24,000 and other digital currencies such as Ethereum have rallied over the past two months. Many players in the cryptocurrency industry have taken this as an indication that we have seen the worst of the cryptocurrency winter.
Still, many companies that are associated with the crypto market are still struggling, with Coinbase reporting a loss for Q2 2022 and Nvidia, whose graphic cards play a crucial role in bitcoin mining rigs, also reporting huge losses. Companies in the cryptocurrency space have also been forced to cut their workforces, which has been harmful for morale. Some experts believe that Bitcoin will remain within a narrow range for the near future, neither continuing to fall nor seeing a huge rally in prices.
In a recent report from crypto wallet company Uphold, head of blockchain and crypto research Martin Hiesboeck said that the crypto market is currently subdued and Bitcoin is “treading water”. He says that although it is encouraging that big institutional investors have met every down move with large orders, he expects the crypto market to continue experiencing breakneck volatility for the foreseeable future.
Hiesboeck said that plenty of investors choose to sell whenever crypto prices rise because they believe there won’t be improvements in the macroeconomic outlook any time soon. Furthermore, he added, savvy investors and institutions think that Bitcoin has bottomed and keeps accumulating, leading them to make moves that drive excessive price action.
This kind of volatility could eventually go down as the crypto market becomes suffused with traditional Wall Street companies. For starters, a recent partnership between money management behemoth BlackRock and Coinbase caused Coinbase shares to rally by as much as 44%. Jack Cameron, cofounder of metaverse advertising and technology company Luna Market, says the deal between the two companies is massive, stating that all crypto holders will benefit the more institutional money is injected into the crypto market.
As the crypto winter bottoms out and the industry starts climbing out of the bear market, blockchain tech companies such as BlockQuarry Corp. (OTC: BLQC) are sure to heave a sigh of relief as their operations gradually pick up and grow faster as the world adopts blockchain applications in the healthcare sector and other industries.
NOTE TO INVESTORS: The latest news and updates relating to BlockQuarry Corp. (OTC: BLQC) are available in the company’s newsroom at http://ibn.fm/BLQC
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