Cryptocurrency prices fall in December and investors blame omicron, climate change
[ad_1]
Investors and analysts believe that the increasing cases of the Omicron Covid-19 variation in the U.S. is a significant catalyst for falling cryptocurrency prices in December.
Ethereum has risen more than 400% since 2021. However, it is on track for its worst month since March 2020. This could be because investors are reassessing their risk exposure following the Omicron version’s emergence.
Bitcoin is on pace to double the S&P 500 and Ripple more than 200% higher year to date, but both are also down double digits this month.
Brian Kelly, the CEO and founder of BKCM (digital currency investment firm), stated to CNBC that Omicron was on its way and that there is a slight slowdown in the US economy.
Lou Kerner, BlockChain Co-Investors partner says that ESG investments and worries about energy usage have both been catalysts for recent crypto drops.
Today’s ‘Proof of Work” from the [cryptocurrency]Kerner explained to CNBC that mining machines are viewed negatively by many investors because they consume a lot more energy. But if one digs deep enough you will find that much of this energy could be used to create something else. It will have a much lower impact next year due to its immense value.
In December, stocks that mine or hold cryptocurrency experienced deeper losses than those holding them. MicroStrategyThis month, it is 21% lower Riot BlockchainIt has dropped 38% Marathon DigitalThe decline was 31% Kerner believes that investors are beginning to see a shift in how they view stocks and coins.
“We are on the cusp of a deep understanding by institutional investors of the different companies and what they actually do and the economics of the businesses. Most investors still struggle to understand mining. This is a very small market so there aren’t many institutional investors who devote a lot time to mining. Kerner explained that they can look at it like a basket.
Kelly, who is bullish about bitcoin, believes that it will reach $100,000 by 2022. But Kelly says that the rise of the metaverse has also attracted investor interest.
Kelly explained that “you’ll see lots of other coins regardless of whether they are in the metaverse gaming or decentralized financing do really well.” Venture capitalists and new money, like mine, focus on early growth opportunities.
[ad_2]