Bahrain-based regulated bitcoin exchange raises $110 million from Paradigm and others

Analysts at UBS are predicting the imminent decline of the world's largest cryptocurrency, as a growing number of factors indicate that the "crypto-winter" is not far off, writes Business Insider.

According to them, the case for BTC as a currency and inflation hedge is on the wane, and its technology has several drawbacks.

Bitcoin has fallen sharply in recent weeks as investors prepare for an interest rate hike by the Federal Reserve.

UBS analysts led by James Malcolmin a Friday note to clients noted the onset of a "crypto-zima," that is, a giant collapse of many cryptocurrencies that may not recover for years. A Fed interest rate hike in 2022 would reduce the appeal of cryptocurrencies and, like bitcoin, and similar risky assets in the eyes of many investors, as such a move by the government defeats the argument that bitcoin is a good alternative currency or a means of savingof the same.

It is also important that its mining technology has many disadvantages, and regulation in the entire crypto-industry could stall its development. As we know, blockchain technology is difficult to scale due to its decentralized structure, which requires that all participants in the network can control and verify transactions. Also, according to UBS analysts, rampant speculation on cryptocurrency networks "inevitably requires greater oversight to protect consumers andfinancial stability.

BTC fell about 1% to $42,722 last Monday, well below its record high close to $69,000 in November.

There is every reason to believe that BTC's position will only get worse, as well as that of other cryptocurrencies, which will not be able to recover for a long time yet.

Recall that the last "cryptozyma" occurred in late 2017 and early 2018, when BTC fell from $20k to $4000 in more than a year, which led to the loss of interest of many investors in digital assets.

If central banks will fight inflation with harsh methods, it will undermine the argument that investors should stockpile BTC as protection against rising prices, Malcolm and his colleagues say.

It's also just plain bad for the BTC price, since central bank stimulus has been a key driver of cryptocurrency growth in 2020 and 2021.

There is a growing realization among crypto investors that bitcoin is not "better than money" because it is very unstable and its limited supply makes it inflexible.The large-scale emergence of autonomous vehicles opens up new possibilities for virtual reality. This is the opinion of the auto analyst of the investmentAdam Jonas of Morgan Stanley Bank (NYSE:MS).

"Today it's your car. Tomorrow it will be an immersive digital reality experience provided by a carbon fiber-coated IMAXIka on wheels attached to an electronic skateboard controlled by a supercomputer," Jonas said in a commentary to CNBC.

According to Jonas, the time that people willThe number of hours spent in cars will increase from 600 billion hours per year today to 750 billion hours in 2030 and 1.2 trillion hours in 2040.

According to the analyst, the so-calledmobile meta-universe" could secure a commercial airplane. He claims that Tesla (NASDAQ:TSLA) has the potential to become a major player in this area.On Tuesday, January 18, the price of bitcoin is falling. As of 09:45 MSK, the first cryptocurrency is trading at $42,274.3 (-1.27%), according to CoinMarketCap.

Ether has fallen to $3196.93 (-2.5%). Binance Coin fell 2.46% to $474.19.

The cryptocurrency market lost 2% of its capitalization in the past day to $2 trillion. Between January 8 and January 11, when there was a previous dip under this round level, buyers stepped up in the market. But, as we see, the bulls' forces were not enough for a long time.

Bitcoin is losing 2% in 24 hours, retreating to the $42,000 mark, returning to the area ofThe traditional financial markets on Tuesday morning are wary, so a test of $42,000 could quickly turn into a test of the strength of the $40,000 level. The traditional financial markets on Tuesday morning are wary, so a test of $42,000 could quickly turn into a test of the $40,000 level.

On the bitcoin chartThe downward reversal is more clearly seen with preservation within the framework of the three-month downward channel. The RSI on the daily charts remains in neutral territory, i.e. there is still room for a decline. The 50-day moving average is still in the negative territory.The Eurozone is also undercutting the 200-day trend, also signaling a move into a bearish trend. The ether pulled back to $3190 from the area near $3500, sagging under bearish pressure.

The methodical sell-offs are clearly exhausting the market participants, but so far there are few signs of enthusiasts capitulatingBahrain-based cryptocurrency exchange Rain Financial, licensed by the local Central Bank, closed a $110 million Series B investment round led by Paradigm and Kleiner Perkins.

Coinbase Ventures, Global Founders Capital, MEVP, Cadenza Ventures, JIMCO and CMT Digital.

The platform will use the proceeds to expand its team and improve its technical component. It also plans to expand into the Middle East and Pakistan and obtain licenses from local regulators.The company currently has a presence in Turkey and the UAE in addition to Bahrain. In addition to Bahrain, the company is now also represented in Turkey and the UAE.

The press release states that Rain Financial's client base has reached 185,000 active users.

The cryptocurrency exchange was founded in 2017у. After two years in the regulatory sandbox, Rain was licensed by the Central Bank of Bahrain, becoming the first regulated trading platform for cryptoassets in the region.

Recall that a year ago, Rain Financial raised $6 million from MEVP Capital and others.gikhs.

In the same month, another cryptocurrency exchange CoinMENA received a license from the Bank of Bahrain and a certificate of compliance with Shariah law from the Shariyah Review Bureau (SRB).

In December, Bina received approval to operate in Bahrain.nce.

Press ESC to close