Bitcoin and Crypto Prices Struggle Despite Market Potential
The Bitcoin Price Drop
The bitcoin price has dropped 10% over the last month due to various factors:
- U.S. president Joe Biden’s regulatory crackdown on cryptocurrencies
- China’s strict regulations on crypto
- G20 leaders’ concerns about the impact of cryptocurrencies on the global economy
Coinbase Integrates Bitcoin’s Lightning Network
Coinbase, one of the leading cryptocurrency platforms, has announced its integration of bitcoin’s payment-focused lightning network. This move aims to enable faster and cheaper bitcoin transactions. The lightning network has already been adopted by Coinbase’s competitors Binance, Kraken, and Bitfinex.
An Unprecedented Decoupling
Mizuho analysts have warned of an “unprecedented” decoupling of crypto prices. They believe that the declining trading volumes on Coinbase indicate potential fatigue among retail customers. Unlike in previous cycles, the fear of missing out (FOMO) no longer entices investors to trade bitcoin when prices rise. This could pose a problem for Coinbase, as retail customers account for 95% of its trading revenue.
What’s Next?
Despite the recent struggles, the crypto market still holds immense potential. Experts predict a $15 trillion earthquake in the market. To stay informed and navigate the market rollercoaster, it is crucial to have up-to-date information.
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