Author: Barron's

Shares of crypto trading platform Coinbase Global were taking a hit Tuesday after cryptocurrencies slumped. Bitcoin, the largest cryptocurrency by volume, dropped nearly 5% to $49,072.68. Ethereum was down 4.5%, Cardano declined 4.7%, and Terra was down 8.7%. Bitcoin has had a volatile end of year after reaching record highs of $68,990.90 in November. Since then, the currency has lost nearly 30%, hovering around the $50,000 mark. Rising interest rates, tighter liquidity in financial markets, and shifting regulatory stances may be making crypto investors skittish. Coinbase (ticker: COIN ) was down 5.2% to $265.66 Tuesday. The shares were trading nearly 20% below their April stock market debut.…

Bitcoin appears to be ending the year in a funk. Rising interest rates and tighter liquidity in financial markets aren’t great for risky assets like crypto. But investors are still betting that digital assets and their blockchain technology will soon become ubiquitous. “In the near future, you may use blockchain technology to buy a stock, house, or fraction of a Ferrari, or even pay for gas or pizza,” says Alkesh Shah, head of digital asset strategy at Bank of America Securities. “Digital assets are going to be the bridge between the real and virtual worlds.” The technology is developing rapidly, and…

Bitcoin was ahead 2% to $48,200 on Thursday, while Ether, the coin of the Ethereum blockchain network, was up 8% to $4,050—signs that crypto markets may be recovering from oversold conditions. Cryptos had sold off on prospects for tighter global liquidity as central banks pare pandemic-related relief measures. Yet the market appears to be recovering as central banks prime investors for tighter liquidity and higher interest rates. The Bank of England raised interest rates on Thursday—the first major central bank to do so. The Federal Reserve said on Wednesday that it anticipates three rate increases in 2022, following a wind-down of its bond…