- AustraliaNorth AmericaWorld
Blockchain Monthly Highlights: Crypto Losses Mount, Bitcoin Hits Lowest in Over a Year
The past month has been a difficult period for crypto investments, with a market spiral pushing digital assets toward lower valuations.
Cryptocurrency investments took a beating in May, and serious losses continue to mount.
Also during the past month, a crypto exchange reaffirmed its intentions to head out and pursue meaningful acquisitions as it attempts to use its recently raised capital.
Here the Investing News Network (INN) offers a recap of what to know about the blockchain business and cryptocurrencies in the month of May.
Digital assets continue to struggle through May
Five months into 2022, the hype surrounding cryptocurrency investments has been met with a major downturn in value for the biggest digital assets, with a serious selloff taking place.
Near the halfway point of May, bitcoin fell below US$26,000 in value — its lowest point in over a year. The dip resulted in an erasure of US$200 billion from the market, according to a report from CNBC.
“I never thought things would get ugly this fast,” Ed Moya, a crypto analyst at the trading firm OANDA, told the New York Times. Fellow digital asset ether has similarly seen a big downturn in value throughout 2022.
In Forbes, ADVFN CEO and founder Clem Chambers argues that the involvement of financial institutions in the crypto space won’t change the volatility of the market right now.
“I’m told the crypto cycle is dead because institutions are in play but my observation is that institutional activity is shallow and to make it more fragile still, institutions are fair weather friends when it comes to investment themes,” Chambers wrote in a mid-May piece for the news outlet.
In an attempt to bring more regulation to the digital asset class, US Treasury Secretary Janet Yellen pointed to this unstable, volatile period. “In the last couple of days, we’ve had a real-life demonstration of the risks.”
Crypto exchange expands acquisition strategy
FTX, a digital exchange focused on cryptocurrencies, told Bloomberg it wants to start spending on acquisitions.
The company has recently raised a significant amount of capital, and according to its leading executive, it won’t be shy of spending it. “It’s always something that we’re going to be open to and keeping our ears to the ground on,” Sam Bankman-Fried, the company's co-founder and CEO, said.
The firm has established itself as a key player in the cryptocurrency world thanks to important brand partnerships — it's been seen in Super Bowl ads, and has its name on the premier basketball arena in Miami. FTX has also secured a spot on the uniforms of Major League Baseball umpires.
Around the INN homepage
- Top Stories This Week: Gold Slumps, Bitcoin Crash Spurs "Crypto Winter" Calls: Our weekly video update highlights the recent downturn in value for bitcoin and how that plays a role in the ongoing competition between the digital coin and gold.
- 10 Blockchain Stocks in China (Updated 2022): China is a key territory in the growth and development of blockchain-based opportunities. In this article, we expand on the role the nation and its companies play when it comes to this technology.
- What is Crypto?: It’s all over the news, but as many newcomers quickly find out, the world of cryptocurrency investments can be confusing and disorienting. In this explainer, we go deep on the concept of crypto and what investors should know as they first start their journey in this market.
- Bitcoin ETF Launches in Australia by Way of Canada: Purpose Investments, a Canadian financial institution offering public funds to investors, has formed a partnership to begin offering Australian investors access to its bitcoin fund, the Purpose Bitcoin ETF (TSX:BTCC).
From around the web
- A Canadian Press report showcases the push for finance professionals to join the cryptocurrency world. “Data from LinkedIn released in mid-April found that, in the U.S. at least, net crypto hires were up 73 per cent last year from the year before, while net hires in traditional finance industries declined by one per cent over the same period,” the report indicates.
One last thought…
INN recently spoke with Richard Baker, CEO of TAAL Distributed Information Technologies (CSE:TAAL,OTCQX:TAALF), to get his perspective on the impact that cryptocurrency volatility has on companies focused on specific aspects of the blockchain opportunity.
“There's a lot of distortion in the industry,” said Baker, whose company is a blockchain solutions operator with several tech opportunities.
The TAAL executive told INN his firm needs to be aware of the sentiment surrounding the market, but in the long run he believes investor enthusiasm is real and long lasting.
Look for our full interview with Baker on INN's blockchain channel later this week.
Don’t forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
- Blockchain Trends 2021: Market Sees Increasing Appreciation ›
- Blockchain Outlook 2022: Blockchain Tech Maturing, Cryptos Still ... ›
- Bitcoin: A Brief Price History of the First Cryptocurrency ›
- Top Canadian Blockchain Stocks ›
- Ways to Invest in Blockchain ›
Bryan is a Senior Editor with INN. After graduating from the Langara journalism program he did some freelance reporting with community newspapers in British Columbia. He initially wrote about the life science space for INN and now spends his time covering the marijuana market, from Canadian LPs to US-based companies, and the impact of this sector on investors.
Learn about our editorial policies.