It has been an especially eventful month on the cryptocurrency markets. As investors try to determine what the best opportunities are, Australia made a number of positive steps toward adoption. The crypto world has been buzzing this month, so what’s new?
Cryptocurrency news
Australia continues to adopt cryptocurrency
Cryptocurrency and blockchain technology are being adopted widely in Australia. Australia ranked #1 on a global index for its interest in cryptocurrencies, while the Treasury department announced a Token Mapping exercise.
Australia is clearly taking a proactive approach to exploring the opportunities presented by cryptocurrency and blockchain, even though they are still relatively new technologies. By mapping tokens on the Australian blockchain ecosystem, we will be able to have a better understanding of the ecosystem, and the proposed CBDC will explore the use cases and economic benefits of CBDCs. Australia may be able to take advantage of these initiatives to position itself at the forefront of the global crypto market.
Global financial markets take a hit, along with crypto
Stock markets across the globe – and crypto markets – have been impacted by the gradual rise in interest rates in the US Federal Reserve. Taking out loans to finance their operations can result in lower profits when interest rates rise. The stock price of these companies can fall as investors become concerned about their future prospects.
The crypto markets are also experiencing this phenomenon recently, however. In research, researchers found that bitcoin’s price declines when the Fed raises interest rates. It is evident from this that the two markets are closely correlated and that the Fed can have a significant impact on both crypto and traditional markets. We will have to wait and see if this correlation continues as the Fed raises rates.
More regulation presenting challenges and opportunities
The cryptocurrency market has seen a growing push for more regulation in recent years. Other people worry that this will stifle innovation, even though some see this as a necessary step to keep investors safe. The market will shift as a result of more regulation, but it is difficult to predict exactly how these changes will occur. Whether it is a challenge or an opportunity, one thing is certain: both will be presented to us.
The US government recently sanctioned the crypto-mixing service Tornado Cash. Apparently, hackers were using the service to launder stolen funds, so the service was banned for national security reasons. As a result of these sanctions, bad actors around the world will have a harder time operating. The new sanctions, however, could lead to financial penalties for anyone who comes into contact with Tornado Cash funds, which could be tough for validators on staking networks.
Institutional investment continues
Global asset manager Blackrock announced earlier this month that it will join rival Grayscale in offering bitcoin trusts for US institutions. As a result of Blackrock’s decision, cryptocurrency could be adopted on a broader scale. A major player entering the space is a positive sign for the future of cryptocurrencies, despite regulatory uncertainty and volatility.
Coin movements in the last 30 days*
Those who gained the most
- Chilliz CHZ (67.61%)
- Nexo NEXO (33.10%)
- Ankr ANKR (22.01%)
Those who lost the most
- Helium HNT (-35.56%)
- Bitcoin Gold BTG (-30.72%)
- Uniswap UNI (-29.38%)
*As of 30/08/22, figures are correct
Crypto trends
Ethereum – the merge….
It is anticipated that the long-awaited Ethereum merger will take place in September. A majority of the community has been eagerly anticipating the upgrade from proof-of-work to proof-of-stake. In the early part of the month, Ethereum’s price gained a bit of momentum on rumours of the impending merger. There is, however, growing concern that the merge will not go smoothly as the date draws closer.
Any disruption would cause serious problems for the Ethereum network due to the number of moving parts. Community members remain optimistic, however, and look forward to seeing the upgrade completed.
Brands jump in on NFTs
In the last year, NFTs have become increasingly popular, and projects like CryptoPunks have gone on to become the most expensive NFTs ever sold. Neither artists nor brands have been left behind by technology!
According to Dune Analytics data, Nike has processed nearly US$1.3 billion in secondary trading transactions of its NFTs, as well as US$93 million in primary sales and US$92 million in royalties.
Even though crypto markets are volatile at the moment, governments and institutions continue to support and adopt blockchain technology. Cryptocurrencies will grow stronger with this foundation in place. As well as staying in the market for the long haul, investors can use certain strategies during bear markets. A new day will always dawn in all markets.
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