If cryptocurrencies can be trusted to do one thing, it is to polarize investors.
A high-profile leader in the financial world added criticism of Bitcoin on Wednesday – he said he was skeptical of digital assets for payments – as the cryptocurrency markets are still under pressure. But some space observers insist the beef market is far from over.
The chairman of the board of the Swiss bank UBS, Axel Weber, said on Wednesday that although the underlying technology for cryptocurrencies showed promise, he does not buy the idea that digital assets will replace cash.
“We really like the technology behind it – blockchain technology, distributed ledger – and we do a lot of the trade finance that goes with it,” Weber said. “The crypto part is where I’m skeptical.”
The banker described what is part of the bullish case for cryptocurrencies such as Bitcoin – the concept of moving global payments away from banks and cash to anonymous vehicles.
“It will not survive,” Weber said.
This is not the first time Weber, who also served as president of the German central bank, has proven to be a Bitcoin bear. He spoke of similar skepticism about payments at a conference in 2017, a time when Bitcoin was worth around $ 4,500.
Crypto-assets have been under pressure lately, with a recent rise in the two leading digital assets,
seems to be taking a break.
While Bitcoin is still up almost 250% from a year ago, and Ether has increased by almost 800%, both digital assets have not managed to consolidate around all-time highs that reached last week. That said, crypto markets are also notoriously volatile, and 10% intraday fluctuations are not out of the ordinary.
Bitcoin fell less than 1% on Wednesday to around $ 60,600, after falling below the psychologically important $ 60,000 barrier in previous trading. Its all-time high is close to $ 69,000. Ether, on the other hand, fell 1% on Wednesday – with losses from previous trades – to around $ 4,250, after reaching a high of almost $ 4,900 last week.
“The market continues to decline as Bitcoin traded below the $ 60,000 mark,” said Freddie Evans, a trader with UK digital assets broker GlobalBlock. “Sales have not been limited to the world’s largest digital assets, with the top 10 altcoins falling between 4-6%.”
Evans said the recent correction can be attributed to factors, including the recent strengthening of the US dollar and the signing of the Infrastructure Act, which seeks to introduce greater regulation of cryptocurrencies.
“But there are several technical indicators that indicate that this is not the end of the current beef market, and therefore this continued correction may not last long,” Evans added.
The trader emphasized increased interest in crypto as a means of transaction in the real estate market as evidence of broader adoption. New York developer Magnum Real Estate is selling three retail apartments with a rented ground floor in Manhattan for $ 29 million, and will only accept Bitcoin, according to a report from Yahoo Finance.
“While this is not the first crypto-exclusive agreement that was in 2018, it is still starting the movement for crypto adoption in the property,” Evans said.
Crypto’s presence in real estate has also gone beyond transactions, to brand building.
The Los Angeles’ Staples Center will be renamed the Crypto.com Arena, with the rebranding of the iconic site that will take effect on Christmas Day. The naming rights deal is worth $ 700 million, according to a report from the Financial Times.
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