Bitcoin and cryptocurrency prices struggled this week as the combined value of the crypto market fell below $ 1.5 trillion – up from $ 2.5 trillion in May.
The Bitcoin Price, after getting an unexpected boost from Tesla billionaire Elon Musk last weekend, has resumed its decline in the last few days, Relapse towards $ 30,000 per bitcoin.
As Bitcoin charts show, the 50-day moving average has fallen below the 200-day moving average – a pattern known as the “death cross” – Coinbase co-founder Fred Ehrsam has warned that “most” cryptocurrencies and “won” crypto assets. not working “and” 90% of NFTs “will have” little to no value in three to five years “.
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Bitcoin’s “death cross” appears to be a trailing price indicator despite its ominous name. When the trading pattern last appeared in March 2020, it ushered in a giant Bitcoin bull run that helped even smaller cryptocurrencies hit an all-time high.
“People will try everything possible,” said Ehrsam, who founded the blockchain investment firm Paradigm after leaving Coinbase in 2017 Bloomberg This week there is a warning that many of these smaller cryptocurrencies will not survive. “There will be millions and millions of cryptocurrencies and crypto assets, just like there have been millions and millions of websites. Most of them will not work.”
Coinbase, the San Francisco-based bitcoin and cryptocurrency exchange, went public this year with a huge $ 100 billion valuation Since then, however, market capitalization has fallen by a third due to weakening retailer interest and global regulatory pressures.
Thousands of cryptocurrencies have been created since Bitcoin was created in 2009, with crypto data provider CoinMarketCap currently counting just over 10,000 different coins.
Some, like Ethereum, the second largest cryptocurrency after Bitcoin with a market cap of $ 250 billion compared to Bitcoin’s $ 660 billion, have established themselves as the mainstays of cryptocurrency– while others, including EOS and more recently Internet Computers, made splashy debuts, only to fade over time.
Internet computers’ ICP token is down over 90% from its all-time high set shortly after its launch in May, while EOS, which made headlines when it sold $ 4.1 billion prior to its launch in 2018 Dollars rallied, trades 80% lower.
Ehrsam also warned against investors who bet on NFTs (non-fungible tokens). The popularity of NFTs, which use cryptocurrency technology to tokenize and sell all types of digital real estate, from artwork to tweets, memes, and YouTube videos, over a blockchain has exploded in recent months – though Data suggests the market is already well below its high at the beginning of May.
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“I would even go so far as to say that 90% of the NFTs produced will likely have little to no value in three to five years,” Ehrsam said, comparing the recent NFT craze with “early Internet companies in the late 1990s.” “when many startups from Silicon Valley suddenly appeared with breathtaking ratings, only to disappear entirely in the months and years that followed.
In March, possibly at the height of his NFT mania, the digital artist known as Beeple sold an NFT of his work for a deafening $ 69 million, making him “one of the top three most valuable artists alive” according to Christie’s auction house.
Despite the ups and downs of the bubbling crypto market, Ehrsam remains convinced that Bitcoin and cryptocurrencies will remain.
“I think crypto is the United States’ next online opportunity,” he said, predicting that the complaints were against Bitcoin that it is too energy inefficient by Tesla’s Elon Musk and billionaire philanthropist Bill Gates is eventually evicted. “The world doesn’t change overnight, but you can see that the seeds of exponential growth are already beginning.”