Dogecoin reaches a record high, crypto lender Genesis fires 20% of its employees, and Galaxy Digital backs out of buying BitGo.
Since reaching an all-time high of $68,000 in November last year, the price of Bitcoin has decreased by almost 50% as of 2022. Almost every other cryptocurrency has followed bitcoin’s example. Ethereum has done the same.
As investors struggle with high inflation, the conflict in Ukraine, and changes in U.S. monetary policy, the cryptocurrency market, which recently has been tracking the stock markets, has been a victim of the market-wide selloff of risky assets. As a result, the cryptocurrency and stock markets are growing and collapsing similarly, despite not typically being associated with stocks.
Experts are warning that the worst may be yet to come for the crypto industry. Some companies have even filed for bankruptcy to stem losses. Charlene Fadirepo, a crypto expert and founder of Guidefi, says bear markets can last several months.
The recent crypto market fall warns investors that investing in crypto assets carries additional risk and volatility, mainly during heightened political and economic uncertainty. What investors should make of the most recent crypto news is as follows:
Genesis, a cryptocurrency brokerage, stated on Wednesday that CEO Michael Moro is resigning and that 20% of its 260 employees will lose their jobs. The most recent significant cryptocurrency corporation exhibits signs of difficulty as the cryptocurrency market ebbs. Genesis incurred losses tied to the collapse of Three Arrows Capital earlier this summer.
Over the past week, Dogecoin has increased by more than 15%, primarily due to the buzz surrounding its just-launched blockchain. Users receive wDOGE, a wrapped coin form, if they migrate the meme coin to Dogechain. It enables users to connect the meme token to the network to access various applications and NFTs. However, experts have cautioned against Dogecoin and advise against doing so.
This week, Galaxy Digital announced that it was canceling a $1.2 billion plan to buy cryptocurrency broker BitGo. The now-terminated agreement was declared the most major corporate acquisition in the history of the cryptocurrency industry in May 2021.
According to Galaxy, BitGo failed to deliver audited financial statements for 2021, thus, they have canceled the contract. The firing was deemed “improper” by BitGo, who also stated that they intended to “hold Galaxy Digital legally liable.”
Since cryptocurrencies are still in their infancy, everything from innovation to regulation may significantly impact investors. Although Bitcoin recently reached a new record high, experts advise against making significant changes to your investment strategy due to these movements.