Expert: what factors from what is happening affect the cryptocurrency market

Pavel from delta.theta was our guest. On the stream, we discussed what is happening now and what could happen next:

• Geopolitical aggravation;
• Possible increase in rates;
• Expert: “Crypto winter is coming”;
• NFT: scam and jeeps will go away, innovation will remain;
• Companies continue to go to Web 3.0;
• Funds do not lose interest in crypto and much more.

Video version

For those who have there is no time to watch the whole stream, we have prepared a text extract.

Text version

What factors from what is happening now affect the financial market. Does geopolitics put pressure on the markets?

In every English-language media mailing list that we read, there is a story about military operations. This has been going on for two weeks now. The unpredictability and instability of the Fed’s rate hikes amplify the overall pressure factor. And although cryptocurrency is considered an alternative investment area, the correlation with the stock market still occurs against this background.

What can we expect and how will this affect the markets?

Investors have always tended to underestimate geopolitical situations. They really matter when they happen the way they are happening now. Also under the influence of some factors, the road to more pressure has opened. Looking at how the market reacted to the news about the rate increase, many investors began to accumulate assets, but at that moment a geopolitical situation appeared that no one expected. Previously, we thought that only rate increases would have an effect, but as we see, it turned out that this is not the case.

Fed after raising rates will put an end to the era of crazy speculation? Are there any scenarios in which the rate will not increase?

In my opinion, the issue of money emission is certainly important for the development of the crypto market. Of course, it is possible to predict that a decrease in the money supply among investors will lead to a decrease in prices, but recently a lot of new users have come. Therefore, if emissions continue to pick up, then for several years times may not be easy.

How will companies influence the development of the market?

Many companies and funds that previously invested in traditional markets are now starting to get interested in the crypto market. Traditional instruments are much inferior in terms of percentage returns to cryptocurrencies, perhaps this is what makes venture capital companies not to stand aside. For example Tiger Global, Sequoia and others. Undoubtedly, their actions in a positive way will affect the entire sphere as a whole.

How is Web 3.0 developing? Hype or a look into the future?

On the one hand, it can show that this is a hype, but it seems to me that this is not entirely true. Decisions like this are made by smart people. They look at how such business models will affect the operation of the company. They don’t want to be left out, so they innovate. They are also allowed resources to purchase, invest, or start developing something similar.

How will massadaption and web 3.0 affect users?

Technological literacy of the user is very important. Perhaps the companies themselves will begin to create training programs to make it easier for the client to get acquainted with the platform or project. Perhaps it is their role that will be key.

FTX launches FTX Gaming. What can this give to the market?

As I noticed, many gamers are not very happy about this, they are more considering it solely for speculative purposes, for personal earnings. And as for P2E, we have not yet seen something really worthwhile. Most of the projects are quite primitive, and not very much like a game. Those games that will be visually and technologically similar to the usual games of our time now are only in the development stage. The tools that FTX has can really help create something worthwhile.

NFT and its presence in games. Will the value of technology change, and what awaits it in a bear market?

At the moment, despite the general decline in the entire market, the NFT market is behaving quite decently. In terms of value, at the moment about % of these assets are junk. But this is absolutely normal. This is a natural stage of any technological innovation, especially when there is a lot of hype from the outside. It seems to me that after the hype, the very fundamental value of the technology will remain.

Why did BSC rebrand?

As for me, this is an attempt to get away from the pressure of the exchange itself, the expansion of the company is quite aggressive. Perhaps this was done in order to move away from the shadow of the company, this puts pressure on the development of the ecosystem.

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