Welcome to this week’s edition of Overbit Insights.
Bitcoin plummeted for the seventh day in a row, the longest losing run since the beginning of the year, dropping below the crucial psychological threshold of $40,000 for the first time. According to CoinDesk prices, Bitcoin was trading for roughly $40,800 as of press time, down 2.3 per cent in the previous 24 hours.
Bitcoin’s current losing streak is the longest since the downturn, from July 30 to August 4 of last year. Since September 2021, the price hasn’t dropped below $40,000, and it’s still significantly below the all-time high of $69,000 set in November.
Bitcoin, which was launched in 2009, had its 13th birthday last week, but there wasn’t much of a celebration.
Many investors believe Bitcoin has profited in recent years from the Federal Reserve’s ultra-loose, emergency monetary policies since the coronavirus struck the economy, which included printing more than $4 trillion to prop up ailing conventional markets.
“Macroeconomic uncertainty has resulted in relatively low conviction from market players,” analysts at Coinbase Institutional, the largest cryptocurrency exchange in the United States, wrote in a weekly newsletter on Friday.
The issue today is when and where the price of Bitcoin will find a floor.
Some bulls believe the market is on the verge of a new bull run, but experts at investment research company FundStrat believe the market will have no near-term price support until it falls below $39,570, which is about where the market bottomed in September 2021.
Closing out this week’s edition of Overbit Insights, we take a look at Gamestop and its recently-reported foray into the cryptocurrency world.
On Friday, January 7, GameStop’s stock soared after it was revealed that the video game retailer was going to launch a nonfungible tokens (NFTs) marketplace.
After soaring more than 20% early in the day, the speculative stock concluded the day 7.3 per cent higher.
After the bell on Thursday, the Wall Street Journal reported on GameStop’s probable entrance into the NFT industry. A person close to the incident told CNBC that the preparations had been in the works for months. According to the source, GameStop also intends to form cryptocurrency partnerships to develop games and merchandise for the marketplace.
“GameStop is in a very unique position because a lot of these NFT projects are starting to add gaming utility behind the NFTs themselves,” said Adam Hollander, an NFT investor and creator of the “Hungry Wolves” NFT collection. “GameStop is well-positioned, in my opinion, to be able to capitalise on the fact that they have hundreds of millions of people that play video games that least recognise GameStop as a credible brand.”
NFTs make use of a technology that allows for the storage of evidence of ownership of digital assets on a blockchain, most often ethereum. It’s been one of the most talked-about areas in technology. Investors reportedly valued OpenSea, the most well-known NFT platform, at $13.3 billion.
According to the Journal, GameStop’s marketplace will revolve around virtual video game products such as character clothes and weaponry.
That concludes this week’s edition of Overbit Insights! Take care, and have an excellent start to the new year.