what happened
The cryptocurrencies experienced a nice rebound on Thursday after feeling the pressure at the beginning of the week. The broader stock market is up and technology stocks in particular are moving higher, which generally helps cryptocurrencies. But the bigger news was that Andreesen Horowitz had set up a new venture capital fund. bitcoin (CRYPTO: BTC) was the largest cryptocurrency that made a significant profit Thursday: At one point in the last 24 hours, it increased by 4.1% and at the time of writing this is trading 3.4% higher. Ethereum (CRYPTO: ETH) increased by up to 4.8% and are now higher by 3.9%. Dogecoin (CRYPTO: DOGE) increased by 4.7% and is currently 2.6% higher. Coin Crypto.com (CRYPTO: CRO) increased by as much as 9% and is currently 8.4% higher per day.
Image source: Getty Images.
so what
The biggest news on the cryptocurrency actually came from Russia, where the country’s central bank and the Federal Security Service (FSB) have called for a ban on cryptocurrency trading, and the ban may extend to cryptocurrency mining. Many crypto mining operations in the country have established a business. China was the first major country to ban cryptocurrencies. For many reasons, it would not be surprising if Russia followed a similar path.
The cryptocurrencies would like a larger global audience, but the market clearly does not see Russia’s actions as something to be feared now.
Other related news came from venture capital firm Andreessen Horowitz, which reportedly wants to raise $ 4.5 billion for the new Web 3.0 and cryptocurrency funds. Initial reports suggest that the $ 3.5 billion fund will be spent on traditional venture capital investments in companies that build for Web 3.0 and cryptocurrency, while $ 1 billion will be invested in digital tokens. Andreessen Horowitz was already one of the most successful cryptocurrency investors, and this could strengthen his position as the largest player in this growing industry.
what now
News from Russia is generally negative for cryptocurrencies, but it is not surprising. However, I would recommend paying more attention to the movements that Andreesen Horowitz makes in space. The company has been a key player in building the infrastructure for cryptocurrency and NFT trading, but this investment round could take its involvement to another level.
In the long run, this is why I am generally optimistic about cryptocurrencies, the basic innovations and usefulness that can be built on these platforms. And the cryptocurrencies on which developers build applications are the ones that will be successful in the long run. That’s at least one reason why the crypt market is moving higher on Thursday.
Volatility certainly also plays a role. The crypt market remains volatile, but also correlates with the broader stock market overall. With the market heading higher on Thursday, it’s no wonder some of the biggest cryptocurrencies are growing.
This article presents the opinion of a writer who may disagree with the “official” recommendation of the premium advisory service Motley Fool. We are colorful! Challenging the investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us become smarter, happier and richer.
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