Bitcoin price heading for worst monthly drop since crypto rout in May

[ad_1]

Brian Cheung of Yahoo Finance discusses the price of bitcoin as it heads for the worst monthly drop since May.

Video transcript

[MUSIC PLAYING]

ZACK GUZMAN: Brian too, when we expand and maybe look at some of the crypto action, a similar story. I think it traded recently in a similar fashion to a leveraged tech stock. When we think of cryptocurrencies at large, and you know, that’s not exactly how you want to see bitcoin’s year-end, if you’re a HODLer out there, with the most month low since that big sale we saw in May. However, I would like to point out that there are altcoins that show some strength to wrap up the year, despite the fact that Bitcoin has sold out. And I think you know, this is something that could be lost in the story of 2021, the fork in some of these crypto assets.

BRIAN CHEUNG: Yeah, definitely no Santa’s rally for Bitcoin himself at least, heading into the last trading week of 2021. But what’s interesting is that whatever happens to Bitcoin , this also happens to companies adjacent to Bitcoin. It was interesting that with yesterday’s sale to Bitcoin you also saw a lot of Bitcoin miners, I think Marathon Digital Holdings, Riot Blockchain kind of took a big hit too, Coinbase fell as well . And it’s interesting that I think we’ll have another Bitcoin miner on the show later today. We can certainly ask him what he thinks about all of this.

But what I’m interested in is kind of a macro trend, there’s been a lot of kind of pinning the Bitcoin drop since the latter part of this year to Fed policy itself, and maybe the normalization of Fed policy in 2022 perhaps by taking out some risky assets like Bitcoin. And if that’s indeed the case, as you said, Zack, that it’s sort of trading like a highly volatile or leveraged tech stock, then maybe that makes sense. . But interesting enough to see the FOMC meeting start to grab the headlines of CoinDesk and other Bitcoin publications as well.

The story continues

ZACK GUZMAN: Yeah. I’ll say you know, I wonder how many – obviously I think NFTs being so big has probably prompted a lot of Coinbase moves to rally to it and start supporting it. So a lot of people are looking forward to what this will bring to Coinbase in 2022. I think the other thing too, like I said, we have – well, we’re going to have a clip today from the CEO of Terraform. Labs, Do Kwon, who you chatted with in October just before seeing the crypto really start to take off. Up– more than doubled now since, I think, when we chatted with him just a few months ago. This is an example of, I guess, one of the altcoins that saw some strength here apart from the weakness that we saw in Bitcoin.

The other one that we also hear a lot about is Fantom. And this is one of them, we use the competitor term of Ethereum, but basically they all work in the same area when we talk about supporting NFTs. So even if you don’t think some of these NFTs will keep their value, there are bets investors make on other crypto chains that support, which are the backbone of what these NFTs are built on. . And Fantom, FTM – I think we’re having issues with our data and charts right now, so we won’t be showing the chart, but it’s one of those names that keep going – are floating in terms other L1s, first-layer strings that may not have seen huge surges in 2021, but could be ready for some of that in 2022 if that continues. And Brian, you sort of approach this story from a bank’s point of view, maybe also from a regulator’s point of view, but you know, the adoption that we’ve seen of some big names, I think, has also gone been just a big story in 2021 on where crypto is going because you have huge players who are really diving into this space.

BRIAN CHEUNG: Yes. I mean, when you talk about Fantom, I mean you pointed it out very clearly is that there is going to be an allocation of assets not just in the cryptocurrency space itself, but even inside the NFTs. And I don’t think we’re really close to thinking about how bank regulators might think about how certain bank-managed portfolios may or may not contain an NFT Bored Ape Yacht Club, but it’s definitely a highlight. You see some NFT collectors entering and exiting certain types of NFT only in their OpenSea wallets.

And what’s interesting is that even outside of the currencies you had already described, consider that SOS drops to OpenDAO, which isn’t exactly OpenSea, but they were working with OpenSea to help anyone who had an OpenSea wallet. who had Transactions done in NFTs during 2021 are getting SOS tokens which have exploded a lot in the last few days. They dropped it on Christmas Eve, I believe it did and it has really exploded the last few days.

So it’s very interesting to see how people look at these assets and say, hey, it’s not just about Bitcoin versus stocks anymore, it could be other NFTs – versus other NFTs or certain types. of tokens compared to other types of tokens. It will therefore be a very interesting trend to see in 2022 whether the number of assets available in the cryptocurrency space increases or decreases. It will certainly be a very interesting trend to watch for next year.

ZACK GUZMAN: I don’t want to brag or anything, Brian, but I claimed my SOS. I have a value of $ 75.

BRIAN CHEUNG: I heard.

ZACK GUZMAN: SOS tokens now swinging for the ride.

BRIAN CHEUNG: [? I don’t have any. ?]

ZACK GUZMAN: So we’ll see where it goes.

[ad_2]