The most recent two-month decline in Bitcoin (BTC) coincided with declines in traditional markets as investors once again feared that the Federal Reserve and other central banks will adopt a more aggressive anti-inflation strategy.
Just days ago, cryptocurrency analysts were drooling over the potential of a price push above $25,000. However, the price has dropped 9.3% in the last 24 hours to roughly $21,400.
The action effectively ended recent hopes that the largest cryptocurrency in the world may launch a resurgence after the price drop in May and June.
According to Coinglass, margin calls forced cryptocurrency dealers to liquidate leveraged wagers totaling $600 million.
According to Oanda analyst Craig Erlam, “the crypto winter may not be over yet,” with a decline toward $20,000 being feasible.
The second-largest cryptocurrency, Ether (ETH), which had risen recently on optimism about the imminent “Merge” software update on the Ethereum blockchain, dropped 9%.
The FIL token for Filecoin fell by 17%, and the ETC for Ethereum Classic fell by 15%.
According to Oliver Knight of CoinDesk, cryptocurrency-related equities were trading considerably lower on Friday morning. Riot Blockchain (RIOT) and Marathon Digital (MARA), both of which had double-digit percentage declines, were leading the decline.
Shares of crypto exchange Coinbase (COIN) were down about 7% to $77.81, and shares of MicroStrategy (MSTR), a software company that holds a large amount of bitcoin, were down 8.2% to $297.68. In the news, a new Galaxy Digital Holdings’ crypto fund is on path to raise $100 million by the end of the year. The crypto merchant bank’s Liquid Alpha Fund launched last quarter with internal capital.
Is Filecoin Network’s Incentive Plan Sustainable? Crypto Analysts Want to Know By Jimmy He
How long can it last? That’s what crypto analysts are wondering about the Filecoin incentive program, the driver behind the bulk of the blockchain project’s growth.
Filecoin was launched in 2020 to decentralize the data-storage business, providing an alternative to industry giants like Amazon Web Services at nearly a thousandth of the cost. At its core, the network connects storage providers with clients looking to stow their data. By offering storage space – ranging from extra capacity on desktop computers to large racks – and then running mathematical proofs to show that clients’ data is unaltered, providers can earn the network’s native FIL token as a blockchain reward.
Recently, activity has soared. According to a Messari report, active Filecoin storage deals between providers and clients surged 128% to the second quarter from the first quarter. That has crypto analysts calling attention to the incentive program linked to almost of that growth – Filecoin Plus (Fil+) – and wondering whether it’s sustainable.
- As Bitcoin Drops to Two-Month High, Fear Quickly Returns to Crypto Markets
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