Crypto News
Hello all,
Summer is particularly hot again this year, but we hope you continue to keep a cool head in your assessment of the crypto scene. Bitcoin’s rapid price development over the last couple of years has convinced many people interested in crypto that it’s not worth getting into the crypto market anymore and that they’ve missed the right time to join. A new study, though, finds the opposite to be the case:
Still in Its Early Days – Great Growth Potential for Crypto
The Boston Consulting Group together with Bitget and Foresight Ventures has looked into the future of the crypto market, publishing a study saying clearly, “Despite the most recent slow-down of the crypto market, we believe that the crypto economy will endure.” According to the study, only 0.3 % of personal capital is currently kept in crypto currencies but a massive 25 % in stocks. On this basis, the analysts compare the crypto market – here called Web 3.0 – with the adoption curve of the internet, seeing the former slightly ahead. That underlines the claim that “there is still a lot of space for growth.”
Although the adoption of crypto is still in its early days, a growth trend can be detected, say the companies. “Although difficult to predict, the total number of crypto users will likely reach one billion by 2030, if the present trend of using crypto will continue.”
Aside from more attention by large-scale investors, this growth is primarily driven by the rise of Web 3.0 and the participation in emerging countries.
Consequences of the US Federal Reserve’s Interest Rate Decision
The US Federal Reserve (Fed) has increased interest rates by another 0.75 %, lifting interest rates to between 2.25 and 2.5 %. This already marks the fourth interest rate hike by the Fed this year. Fed chief Jerome Powell has indicated the next rise could follow in September in order to counteract the significant recent rise of inflation in the USA. Inflation has lately gone up to 9.1 % - the highest value for 40 years.
Stock markets reacted positively, such as the NASDAQ registering its highest rise since fall 2020. This trend also carried the crypto markets higher, with some putting in double-digit increases. However, much like recent interest hikes, the enormous price increases will likely be followed by sales and thus falling prices. The rollercoaster ride of the crypto market will continue for quite a while until the market will have finally stabilized and entered ongoing growth.
Network data, though, already show positive signs. “The on-chain data continue to be strong, especially for Bitcoin,” according to Adam Sze, Head of Digital Assets Products at Global X. In the long term, the “prospects of crypto currencies continue to be very convincing.” Other than Bitcoin, “smart contract protocols such as Ethereum are also more and more accepted by institutional investors.” Despite the tense market situation, Adam Sze thus stays optimistic. Crypto might still be in a “bear market.” However, these are also the times “when you can build a lot of things.”
We’re looking forward to presenting you more good news from the crypto world and are already working on them. Watch this space!
Your Castello Coin Team