Bitcoin Plummets on Friday Following Release of Price Increase Data, Sending Digital Asset Market into Turmoil

Bitcoin was down a lot on Friday, dragging the entire market for digital assets with it, after the data on price increases was released and upset investors.

The main cryptocurrency is currently down by 3% over 24 hours, and trading at $23,070 CoinGecko statistics show. In the last week, it crossed over $25,000 on the first occasion in 8 months.

Many other cryptocurrencies have suffered a blow: Ethereum has shed 3.1 percent in the last 24 hours in exchange for $$1,593; Dogecoin is now priced at $0.082--a 3.3 percent drop in the 24 hours.

Cryptocurrency is tracking that of the U.S. equities market today in the same way it normally follows. Investors have shifted "risk-on" assets like stocks and digital assets as the release of key inflation figures on Friday suggests that further interest rate increases by the U.S. Federal Reserve could be soon.

CoinShares Director of Research James Butterfill told Decrypt that the sharp drop in the price of crypto could be caused by the "direct result of macro data from the U.S.," saying that "investors expect a more hawkish Fed."

Friday's report revealed that inflation in the world's most populous economy grew: the price index for personal consumption increased by 5.4 percent from last year, while the primary metric was up 4.7 percent.

Investors in the equity market responded by selling: the Dow Jones Industrial Average fell by 390 points or 1.2 percent and the S&P 500 dipped by 1.6 percent, and the Nasdaq Composite dropped by 2.2%.

Bitcoin isn't doing anything revolutionary The volatile asset has been a victim of other volatile assets such as tech stocks when there are indications that the Fed may remain hawkish in its policy of monetary prudence.

The Fed began raising rates of interest last year in a desperate attempt to control the 40-year-high rate of inflation within the U.S. It increased the rates to 75 basis points, four times before slowing down by increasing the rate by 50 basis points.

Recently the central bank has reduced its rate to 25 basis points, but Fed chairman Jerome Powell has repeatedly said that the path ahead in reducing inflation is bumpy.

Investors generally steer clear of "risk" like Bitcoin and instead put money into "safe-haven" assets like the U.S. dollar--which is up this morning The dollar index increased 0.5 percent on Friday, the most recent high in more than two months.

Bitcoin Hits New All-Time High

 Bitcoin Hits New All-Time High, But Faces Resistance at $60,000

Bitcoin, the world's largest cryptocurrency by market capitalization, hit a new all-time high of $64,863 on April 14, 2021. However, it has faced resistance at the $60,000 level and has been consolidating in a range between $50,000 and $60,000 in the following weeks. This has caused some investors to wonder whether the bull run that started in late 2020 has come to an end.

There are several factors that have contributed to the recent price movements in the crypto market. One of the main drivers is the increasing adoption of cryptocurrencies by mainstream companies and financial institutions. Tesla, the electric car maker, announced in February that it had bought $1.5 billion worth of Bitcoin and would accept it as payment for its products. This was followed by announcements from Mastercard, Visa, and PayPal that they would support cryptocurrencies on their platforms.

Another factor is the increasing institutional adoption of cryptocurrencies. Large investment firms such as BlackRock, Fidelity, and Morgan Stanley have either invested in Bitcoin or are planning to offer Bitcoin-related products to their clients. This has given Bitcoin more legitimacy as an asset class and has attracted more institutional investors to the market.

However, there are also some concerns about the sustainability of the current price levels. One of the main concerns is the environmental impact of Bitcoin mining. Bitcoin mining requires a lot of energy, and most of it comes from non-renewable sources such as coal and natural gas. This has led to criticism from environmentalists and some investors who are concerned about the long-term viability of Bitcoin as an asset.

Another concern is the potential regulation of cryptocurrencies by governments. Many governments around the world are considering or have already implemented regulations for cryptocurrencies, which could limit their use and adoption. For example, China recently banned financial institutions and payment companies from providing services related to cryptocurrencies.

Despite these concerns, many investors remain optimistic about the future of cryptocurrencies. They argue that the increasing adoption by mainstream companies and financial institutions will drive demand for cryptocurrencies and lead to higher prices in the long run. They also point to the increasing number of use cases for cryptocurrencies, such as decentralized finance (DeFi) and non-fungible tokens (NFTs), which could create new markets and opportunities for investors.

What is Near Protocol?

What is Near Protocol?

 

Near Protocol is a decentralized blockchain network that provides high performance and low-cost infrastructure for the development of decentralized applications. It is built with the aim of creating a user-friendly blockchain platform that is easy for developers to use and for end-users to interact with. In this article, we will take a closer look at the Near Protocol, its features, and its potential for the future of decentralized applications.

 

Overview of Near Protocol

 

Near Protocol is a public, proof-of-stake blockchain network that was launched in April 2020. It was created by a team of developers led by Alexander Skidanov, who had previously worked at Google and MemSQL. The protocol is designed to offer high performance and scalability, while also keeping transaction costs low. The Near Protocol is built on a sharded blockchain architecture, which means that it can handle a large number of transactions in parallel.

 

One of the key features of the Near Protocol is its unique consensus mechanism, called Nightshade. This consensus mechanism uses a combination of proof-of-stake and sharding to achieve high levels of scalability and security. In Nightshade, the network is divided into shards, each of which is responsible for validating a portion of the transactions on the network. The validators in each shard are selected through a random process, which helps to ensure that the network is secure and decentralized.

 

Another feature of the Near Protocol is its smart contract platform, which is designed to be developer-friendly. The smart contract platform is based on Rust, a popular systems programming language, which is known for its security and performance. The platform also supports a range of programming languages, including Rust, Assembly Script, and TypeScript, which makes it easy for developers to build decentralized applications on the network.

 

The Near Protocol also offers a range of tools and services to help developers build and deploy their applications. These include a development kit, a web-based IDE, and a range of SDKs for different programming languages. The network also supports a range of decentralized storage solutions, which makes it easy for developers to store and retrieve data on the blockchain.

 

Features of Near Protocol

 

The Near Protocol offers a range of features that make it an attractive platform for developers and end-users alike. Here are some of the key features of the Near Protocol:

 

Scalability: Near Protocol is designed to be highly scalable, with the ability to handle thousands of transactions per second. This is achieved through the use of sharding, which allows the network to handle a large number of transactions in parallel.

 

Low transaction costs: Near Protocol is designed to keep transaction costs low, which makes it more accessible to end-users. The network uses a proof-of-stake consensus mechanism, which is less energy-intensive than proof-of-work, and this helps to keep transaction costs low.

 

Developer-friendly: The Near Protocol is designed to be developer-friendly, with a range of tools and services to help developers build and deploy their applications. The smart contract platform is based on Rust, which is known for its security and performance, and supports a range of programming languages.

 

Decentralized storage: Near Protocol supports a range of decentralized storage solutions, which makes it easy for developers to store and retrieve data on the blockchain. This helps to ensure that data is stored in a secure and decentralized way.

 

User-friendly: Near Protocol is designed to be user-friendly, with a range of features and tools that make it easy for end-users to interact with the network. This includes a web-based wallet, which allows users to store and transfer cryptocurrency, and a range of decentralized applications that can be accessed through a web browser.