For many years, cryptocurrencies have followed their own logic with respect to stock markets and other types of investments. Their price could rise or fall due to factors internal to the bitcoin community or to the rules that a state decided to give to the sector. It has happened many times over the years.
But the new collapse of the sector, with bitcoin slipping back below 40 thousand dollars (currently traveling at 38 thousand dollars, down by 10% in the last seven days), dragging the entire sector of digital assets with it, confirms a trend that has begun. to appear in 2021, and then consolidate in recent months: cryptocurrencies today are an investment asset like any other, they reflect the sentiment of investors, in particular they seem to increasingly follow the trend of the Nasdaq.
AN ASSET AMONG THE ASSETS
Cryptocurrencies fear international tensions, such as those in Ukraine or Kazakhstan, respond to central bank monetary policy decisions, react to inflation, fear the failures of negotiations to avoid a collision in the heart of Europe.
All of these are elements that seem to consolidate the normalization process of crypto as an investment asset. Of course, the risk remains high: the price of cryptocurrencies continues to be very volatile and significant gains are often followed by dramatic collapses. But bears and bulls follow one another with a rhythm now mirroring that of the stock market.
300 MILLION OWNERS WORLDWIDE, 1.3 MILLION IN ITALY
Currently, cryptocurrencies capitalize about 2,000 billion dollars, of which 41% is due to bitcoin, 15% ethereum, the rest is divided among the other 17,460 existing cryptocurrencies. It is estimated that the holders of cryptocurrencies in the world are about 300 million in the world, of which 1.3 million in Italy according to a report by the Triple-a exchange. A number that has grown considerably in recent years.
Cryptocurrencies have become popular. They are in the portfolios of investment funds, sovereign states, banks, and millions of small and medium savers attracted by the possibility that the bullish fury of cryptocurrencies can last over time and allow for big gains.
2022, YEAR OF THE POPULARITY OF BITCOIN
But this same mechanism of ‘popularization’ of cryptocurrencies has brought psychology, the moods of the market itself into their dynamics of value. Today the winds of war in Ukraine threaten the stability of the markets, and if the Nasdaq loses 1.5% in the last session of the week, bitcoin drops 2% following its trend.
The cryptocurrency investor behaves like a technological shareholder investor: he does not buy listed companies, but a technology that in any case seems destined to stay behind the new evolutions of the network, such as web 3.0 or the metaverse.
And if inflation, interest rate hikes, Fed monetary tightening or geopolitical tensions call into question long-term investing in technology, cryptocurrencies lose ground as a result. Over the years, investors have begun to learn about cryptocurrencies.
Today they are quite popular. The fact that three out of 21 adverts that aired on TV during the 2022 Super Bowl final in the United States were of cryptocurrency exchange services and non-fungible tokens tells in a plastic way that cryptocurrencies are no longer a niche sector, but an investment. among others, with its own merits and specific risks.