- Bitcoin could extend its losses this week amid renewed macro fears and the crossover of technical death.
- Hong Fang, CEO of Okcoin, explains why she is not concerned about the token’s short-term volatility.
- It is also laying out NFT’s plans for a cryptocurrency exchange as the race to launch such markets rages on.
Macro fears of faster interest rates, higher interest rates, and tightening financial conditions have caught the cryptocurrency market after causing the global stock market to crash on Friday.
As of Monday afternoon, the total cryptocurrency has reached
It fell to $1.81 trillion, with major tokens including Bitcoin (BTC) and Ethereum (ETH) dropping as low as $38,339 and $2,805, respectively, according to CoinMarketCap.
Facing an imminent death cross, the largest cryptocurrency, which has already slipped to its lowest level in six weeks, is expected to incur further losses. A death cross forms when a stock’s 50-day or short-term moving average falls below its 200-day or longer-term moving average.
A combination of bearish macro sentiment and an ominous technical chart pattern poses a problem for the future of the digital currency, but some say that the lower price level for bitcoin also presents an attractive opportunity for long-term investors.
Hong Fang, CEO of cryptocurrency exchange Okcoin, told Insider in an interview.
Fang said she has been able to weather short-term fluctuations because crypto fundamentals have not changed and technological capabilities are getting stronger. In her view, clear regulation and continuous technological improvement will only help propel the cryptocurrency market forward in the long run.
“Crypto assets are not securities, but think stocks of Amazon, Apple, and Tesla,” she said. “If you’ve done the homework and have a general assessment of where your value is in the long run, this is a great entry point when there are situations in the market where stock prices are lower.”
Bitcoin has become a ‘stable’ asset in crypto
As investors avoid risky assets on a journey to safety, the potential for further declines in Bitcoin is reflected not only in the price of the token but also in the waning interest of individual investors.
After search volumes for bitcoin reached an all-time high in May last year, the general public’s interest in the token has steadily declined, fueling enthusiasm for small-cap cryptocurrencies and riskier ways to make money from cryptocurrencies.
Alternating from bitcoin to cryptocurrencies historically corresponds to the sense of risk in cryptocurrencies. However, as the retail-led market becomes more institutionalized, bitcoin has shed some of the wild
to trade in a relatively close range for the past few weeks.
This has led some to call itBoringAt a time when the likes of Dogecoin (DOGE) are on the rise amid speculation about Elon Musk’s impending purchase of Twitter.
Fang, a former investment banker at Goldman Sachs who has seen such cycles many times before, interprets bitcoin’s increasing “stability” as a sign of its long-term value proposition.
“Bitcoin’s long-term price largely reflects the amount of consensus around which it is gathering globally, and consensus building is coming in waves,” she said. “When you are at the end of one wave, short-term capital is looking for volatility and trading profitability, bitcoin tends to be a more stable asset in the cryptocurrency market.”
NFTs – A stepping stone for newcomers in crypto
Aside from the changing dynamics between bitcoin and altcoins, non-fungible tokens are another crypto sector that has seen a change in sentiment lately.
After a decline in volumes over the past two months, NFT volumes rose in April, according to data from The Block. This rise has been bolstered by the Moonbirds, a group of 10,000 spotted owls that claims to grant private club membership and additional benefits to their long-term owners.
Last week, seven of the top 10 NFT sales were purchases from Moonbirds, with metaverse project The Sandbox paying 350 ETH, or just over $1 million for Moonbirds NFT #2642, according to analytics provider DappRadar.
“NFT is a good starting point for newcomers to crypto,” Fang said. “Experiencing the purchase of a digital asset and then dealing with it in the process of purchasing an NFT is a useful way to learn about the basics of crypto.”
As rival cryptocurrency exchanges including Coinbase, FTX.US and Kraken are in various stages of launching their NFT markets, Okcoin has also pushed a waiting list to gauge user interest in the product, according to Fang.
Fang said at the eMerge Americas conference, due for release later this year, that the Okcoin NFT marketplace will offer zero transaction fees to retail investors and will not put an end to royalty rates that creators can set for sales of their businesses.
“We will also collect information and feedback from customers regarding what they want and use it to iterate on the product we have in the pipeline,” she added. “Our goal is to really build interoperability and build a go-to app for everyone to start the coding journey.”