Bitcoin and charts

Crypto Recovery Underway According to Bloomberg Adria

05.08.2022 09:55
by Maksym Prykhodko
2 min read

Good news. Recovery of the crypto market is underway, with medium-term growth expected to follow, say the analysts at Bloomberg Adria.

According to the Bloomberg Galaxy Crypto Index, the crypto market is now 43% healthier than it had been at the end of the first half of 2022, when it hit its bottom value. As for Bitcoin, it has seen a 32% improvement.

And while the crypto industry is traditionally seen as highly volatile, the situation on that front is getting better as well. When compared to the tech stock trade at Nasdaq, the Bloomberg Galaxy Crypto Index is now only two times more volatile. For comparison, a year ago it had been eight times more volatile.

Bitcoin is also on its way to becoming a widely accepted collateral in financial transactions. When compared to other financial assets, its advantage is that Bitcoin is commonly traded over the weekend as well.

One explanation for the overall positive change is the low expenditure necessary to begin trading. Due to the low cost of crypto, investors are assuming prices had already been adjusted with the negative factors associated with crypto trading in mind.

In fact, people’s level of interest in Bitcoin is the highest it’s been since November 2021, according to the daily number of futures contracts obtained by traders (a metric commonly used to gauge interest).

As for the Adria region, the number of crypto investors there (1,6% of the overall population) is still below the EU average (3,3%). Interestingly, Serbia is the leading Adrian country when it comes to the percentage of crypto investors (1,9% of the population), with Slovenia (1,7%) and Croatia (1,6%) following.

Author

  • Maksym has denied the existence of crypto as an asset for 3 years when he was working with standard financial instruments. Became Head of Treasury. Won the best bank employee award and left the bank for cryptocurrency exchange the next day. Got a second university degree, but that didn’t stop him from studying finance yet. Combines fiat and crypto experience to be as objective as possible in general matters. His dream is to be interviewed by Bloomberg.

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