Cryptocurrency Corner: Bitcoin (BTC) and Ethereum (ETH) Rates Drop Below Key Levels as Israel and Hong Kong Test Digital Currency

photo: pexels.com

Bitcoin and Ethereum slip below key levels

Bitcoin and Ethereum fell below key support levels. Indeed, cryptocurrency markets continue to face significant challenges due to rising inflation and interest rates.

BTC dipped sharply below $20,000 last week, while ETH fell below $1,000 on Saturday. This morning on the eToro platform, Bitcoin is trading at just under $20,000, while Ether is trading at just over $1,000.

Current market conditions do not leave much room for optimism. After posting very strong results over the past 18 months, valuations are heavily undervalued. We are now back to 2020 levels, but prices are still above the levels we saw just 1.5 years ago.

Since the highs of December 2017, Bitcoin has fallen around 84%, reaching its lowest level in December 2018. In the current situation, from an ATH of around $69,000, compared to the current level of $20,000, the drop is 71%.

While it is not always easy to determine the long-term prospect of each asset for investors who have purchased them at the higher levels, it is essential that all arguments for long-term cryptocurrency investing remain the same. (especially when you consider underlying ideas and historical price trends). .

Cardano updates are coming

Cardano founder Charles Hoskinson has announced several Cardano blockchain updates that will go into effect by the end of June. The updates dubbed the “Vasil” hard fork will improve network bandwidth, transaction speed, and – in theory – lower fees. Blockchain will also receive other improvements, including new smart contract features.

The updates, although coming at a difficult time for the markets, prompt investors who, beyond the short-term buzz of an unfavorable price situation, want to look ahead and network opportunities to strengthen their investments.

Over the past few years, Cardano has become a serious competitor to Ethereum. Prices don’t always reflect the work put into such projects – since last September, Cardano’s web usage has surged, despite the token’s price battling with competition and the wider market.

BIS launches a crypto-intelligence platform

The Bank for International Settlements (BIS) is launching a new intelligence platform for cryptocurrencies. The innovation hub of this international institution launches the platform to provide carefully verified data on cryptocurrency projects.

The launch of the platform is a welcome innovation in difficult times for cryptocurrency markets. Transparency is key to building trust in this sector. Providing users and investors with carefully verified information is therefore an important step.

The BIS project will also examine the issuance of CBDCs by intermediaries. Cryptocurrencies are a wide range of innovations, ideas and projects, so it is very important that institutions such as the BRI provide oversight and follow the development of various fields. This gives you more control and protects your users against major threats.

Israel and Hong Kong test digital currency

The Bank of Israel (BoI) and the Hong Kong Monetary Authority (HKMA) are working together to test the central bank digital currency (CBDC). According to BoI, the test will cover the main cybersecurity risks of CBDCs.

The project is expected to start in the third quarter and the BoI will issue CBDCs to financial institutions such as banks. Many regions are actively exploring the use of CBDC. This test can provide valuable insight into how institutions such as banks interact with digital assets.

Israel initially withdrew from the CBDC as early as 2018, so clearly the technological potential cannot be ignored. International competition in this field is also an important factor. For example, China is already running CBDC trials with millions of participants, and countries like the UK are also actively exploring the possibilities.

Leave a Comment