Cryptocurrency prices fall in December, investors blame Omicron for climate change

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According to investors and analysts, the increase in the number of cases of the Covid omicron variant in the United States is the main catalyst for the fall in cryptocurrency prices in December.

Ethereum has risen by more than 400% in 2021, but the worst month since March 2020 as investors are reassessing their exposure to higher risk assets following the advent of the Omicron variant. We are moving at a pace.

Bitcoin is moving at a pace that doubles the S & P 500, with Ripple so far more than 200% higher, but both are down double digits this month.

“With the advent of Omicron and the slight stagnation of the US economy, many macro funds that use Bitcoin as this procyclic inflation hedge have decided to make a profit throughout December,” said the digital currency. Brian Kelly, CEO and founder of investment firm BKCM, said. I told CNBC.

Concerns about ESG (or environmental, social and governance) investment and energy use have also triggered a recent decline in cryptocurrencies, according to Blockchain Coinvestors partner Lou Kerner.

“From today’s” Proof of Work ” [cryptocurrency] Mining machines are seen negatively by many investment communities because of the energy they consume. However, if you dig deeper, much of the energy becomes energy that cannot be used for other purposes. Compared to the enormous value we are getting from it, the energy I think will be much less worrisome next year. “

Stocks holding or mining cryptocurrencies have fallen significantly from the assets themselves in December. MicroStrategy It’s down 21% this month, Riot blockchain It is down 38%. Marathon Digital It decreased by 31%. Coins and stocks are closely correlated in the minds of investors, and Kerner sees something changing.

“We are at the forefront of a deep understanding of institutional investors in various companies, what they really are doing, and the economics of the business,” Kerner said. rice field. “It’s still hard for most investors to worry about mining. It’s a small part of the market, so few institutional investors spend a lot of time on it. They’re easier to just look at. Like a basket. “

Kelly is bullish on Bitcoin and believes it could reach $ 100,000 by the end of 2022, but said the emergence of the Metaverse has attracted investor interest.

“You’ll see many other coins really work, whether it’s the Metaverse, the game, or the decentralized finance,” Kelly said. “Venture capitalists, new money, and funds like me are focusing on these early growth opportunities.”

Cryptocurrency prices fall in December, investors blame Omicron for climate change

Source link Cryptocurrency prices fall in December, investors blame Omicron for climate change

The post Cryptocurrency prices fall in December, investors blame Omicron for climate change appeared first on Eminetra.

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