by Analytics Insight
February 27, 2022
Bitcoin’s price suddenly fell from close to $39,000 down to $34,529 within a 24-hour period.
Bitcoin fell to its lowest price for a month after Russian forces began invading Ukraine. The world’s largest cryptocurrency fell 8% in a day to a price of $34,324 as rivals Ethereum, Solana, and Shiba Inu all fell as much as 10%. The impact of war in Eastern Europe saw $160 billion disappear from the crypto industry in just 24 hours.
Cryptocurrencies aren’t the only investments to lose value this week. Europe’s Stoxx 600 index dropped 2.6% after opening on Thursday (February 24) while analysts expect a 7% fall in the S&P 500.
Early 2022 saw claims that Bitcoin was a ‘digital gold’ – meaning a powerful investment hedge during current periods of high inflation. However, the Russia-Ukraine crisis has proven this not to be the case. Cryptocurrencies have fallen in step with macroeconomic conditions.
But will the cryptocurrency industry always be this way? In this article, we’ll look at what analysts predict for Bitcoin in the coming year, and from the EverGrow Coin camp about how cryptos can generate their own trading volume to avoid bearish markets.
Bitcoin – a risky asset?
Bitcoin’s token price suddenly fell from close to $39,000 down to $34,529 within a 24-hour period as Russia began to land and sea attacks on Ukraine. Of course, Bitcoin wasn’t the only economic casualty of the outbreak of war in Europe. Global stocks and US bond yields also dived. And yet despite claims that Bitcoin was the new ‘digital gold’ the top crypto tanked as oil prices, the dollar and real gold rocketed higher in value.
According to Joseph Edwards, head of financial strategy at Solrise Group, this pattern was understandable. “We’ve seen what we’d expect so far – BTC and crypto markets following stocks,” he said. “All things tend to correlate in crises, and we’re expecting similar here, so worse is likely to be in store over coming days.”
Vijay Ayyar, vice president of corporate development at crypto exchange Luno, suggested Bitcoin falling to lows of at least $30,000 over the coming weeks. The real test will be whether BTC falls to prices of $28,000 and $29,000 seen last July. If Bitcoin falls below even that, Ayyar predicted lows of $20,000 for Bitcoin in the coming year.
According to Chris Dick, a trader at crypto market maker B2C2, the correlation between the crypto market and stocks has been high following inflation-related macro news and the Russia-Ukraine crisis.
“This correlation shows that Bitcoin is firmly behaving like a risk asset at the moment – not the safe haven it was touted to be a few years ago.”
EverGrow Coin – the crypto case for self-generating volume
While most cryptocurrencies suffered during this year’s bearish cycles, one crypto newcomer has been pushing the #cryptopositive hashtag. This newcomer is EverGrow Coin, which launched in September last year. After quickly becoming the top rewards token paying out rewards in BUSD (over $34 million to date) the crypto has now set its sights on a loftier ideal – beating the bearish market.
The problem the EverGrow’s team identified is how to keep trading volume during periods of high risk. Instead of creating another crypto token designed to be used as currency, EverGrow built utilities into its ecosystem while developing new projects to generate income and revenue for coinholders regardless of EverGrow Coin’s actual coin price. EverGrow distributes 8% from all Buys, Sells, and Transfers to coinholders’ wallets in BUSD. A further 2% tax is used to buy up EGC on the market and send it to a burning wallet – both driving up EGC’s price and creating more BUSD rewards.
The EverGrow team has announced the imminent rollout of the world’s first crypto-integrated social media platform, Crator. The platform pays content creators in EverGrow Coin, other cryptos, or fiat currencies in tips and subscriptions. Alongside advertising revenue, any profits will be used to buy back EGC – raising prices and generating more rewards to coinholders.
According to EverGrow Coin’s chairman and investment expert Sam Kelly, this is a means for crypto to generate its own ‘trading volume from utilities to separate it from bear market cycles’.
The move is exciting for cryptocurrency traders in 2022, and many analysts are pitting EverGrow Coin to jump into the top 20 major cryptos this year. The current coin price is $0.0000004767 while EverGrow sits at a market cap of $300 million.
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