There may be a noticeable change in performance on the way, although it may be too early to tell. The technology saw a massive sell-off last week following poor earnings news, but cryptocurrencies largely held out.
This is in contrast to the past few months where stocks, highly correlated to cryptocurrencies, have suffered setbacks. Indeed, price resilience has become an increasingly important story for Bitcoin and Ether since June, with correlations appearing to have somehow disengaged.
Bitcoin, for its part, saw a rally early last week, taking the crypto asset above $ 20,000 on Tuesday, where it continues to hold this morning. The crypto-asset saw a short sale on Friday that took it below the $ 20,000 mark, but has since returned to around $ 20,300 this morning.
Ether saw a similar price change, surpassing $ 1,450 on Tuesday. However, the crypto asset continued to rise, trading above $ 1,500 at the end of last week and currently above $ 1,560.
Dogecoin rises after Musk buys Twitter
Dogecoin saw a huge price hike over the weekend following Elon Musk’s takeover of Twitter. Investor expectations for the token have skyrocketed as Musk has repeatedly said it could be used as a basis for transactions on the social media site.
Dogecoin has languished around $ 0.06 since mid-year, after leaving its $ 0.5604 ATH on the eToro platform in May last year. But Musk’s rally brought the price back above 0.125 for the first time since May of this year.
Investors should treat these price spikes with caution. The recent rise has catapulted Dogecoin to the sixth largest crypto asset by market cap, ahead of stocks like Cardano. While it’s perfectly conceivable that Musk’s decision changed the token investment case, if you look at other companies like Tesla, adoption has been limited.
Hong Kong embraces cryptocurrencies
The Hong Kong government issued a political statement on digital assets in the region, overturning previous skepticism towards the industry and launching a consultation on improving the regulatory environment.
The Special Administrative Region had previously stated that it wants to strictly control cryptocurrencies in the stock markets, but it appears to have made a complete change by calling this sector a “dynamic sector and ecosystem”, while outlining some plans to create a risk management controls and promotes the sustainable innovation.
Hong Kong isn’t the only city that has changed course to a more melodic pace with cryptocurrencies. The EU, UK, US and other regions are pursuing proactive and accommodative regulatory frameworks for cryptocurrencies. This is a potentially exciting time for the industry, which, if properly coded, can further reassure users and companies by driving innovation and growth.
Google Cloud launches Ethereum node hosting
Google Cloud announced via a blog post that it was launching a “Blockchain Node Engine”. The company specifies that it will be a fully managed node hosting for web3 development. The project will mainly focus on the Ethereum blockchain for now.
Node hosting is a data-intensive and energy-intensive process. It makes sense for companies like Google to take a pick and shovel approach to this emerging technology because it allows other companies to develop ideas, simply by using its platform to do so.
In this way, the company can skip the labor-intensive and cost-intensive development and innovation process and can focus on hosting this environment. It’s also a quid pro quo for companies that choose its platform, as it takes some of the stress out of building and hosting their own nodes, leaving them the space to build digital applications.
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