by Staff

By Marcus Sotiriou, Market Analyst at the publicly listed digital asset broker GlobalBlock (TSXV:BLOK). 

Bitcoin has dropped to $28,000 and sits currently on a key support level. From a technical analysis perspective this is a pivotal moment for Bitcoin – if $28,000 fails to hold on the daily time frame, this would signal a deviation back into the range which it just broke out of (a 10-month consolidation). $28,000 is also the Summer 2021 low, further providing confluence to its significance.

The recent drop in Bitcoin’s price is partly due to the UK’s high inflation data earlier in the week. UK headline CPI YoY came in at 10%, above the forecast of 9.8%, and core CPI is above 6% YoY. Retail price inflation also superseded the consensus forecast. This is the 10th consecutive month where UK CPI has been above 10%.

However, the UK real yield curve remains extremely low, which means that the current monetary policy might not induce sufficient tightening. We are already seeing stagnant demand as UK real GDP is still below Q4 2019, and unemployment increased to 3.8%.

The combination of persistently high inflation, stagnant demand and higher unemployment, means that the UK economy could be entering stagflation soon, where we have high inflation and slow growth simultaneously.

Institutional investment in blockchain businesses continues to thrive however, particularly in Africa. According to the latest CVVC African blockchain funding report, $474 million was invested into African blockchain businesses, such as digital asset brokers, in 2022 – a 429% increase from the previous year. More than 50% of the funds were allocated to categories such as digital asset brokers, custody and exchanges, which raised over $250 million. The total funding for firms such as digital asset brokers in Africa amounted to 29 deals – four more than that settled in 2021.

#blockchain #crypto, #decentralized, #distributed, #ledger

 by Staff
By Marcus Sotiriou, Market Analyst at the publicly listed digital asset broker GlobalBlock (TSXV:BLOK).  Bitcoin has dropped to $28,000 and sits currently on a key support level. From a technical analysis perspective this is a pivotal moment for Bitcoin – if $28,000 fails to hold on the daily time frame, this would signal a deviation back into the
#blockchain #crypto, #decentralized, #distributed, #ledger  Read More  Blockchain News, Opinion, TV and Jobs