Bitcoin price is unlikely to rebound soon, past Crypto Winters indicate

Investors who look to the past for clues as to whether Bitcoin’s current slump is over may be disappointed.

Investors who are looking for historical data to determine if the current slump in Bitcoin prices is over may be disappointed to find that price recoveries tend to trail those of the stock market. According to Bitooda Holdings Inc data, the largest digital currency in market value is rarely within close proximity of its all time highs. Since 2014, the S&P 500 has only suffered two short bear markets. This includes one during the onset and end of the pandemic. Today’s Bitcoin price was less than 1% lower at $43,650, as of New York City 11:54 AM.

Bitcoin experienced long drawdowns during that time, before reaching new heights. It is currently in its fourth major decline. According to Bitooda’s head for research Sam Doctor, the cryptocurrency hit a record-high of 124 times since 2014. The S&P and Nasdaq have reached new highs 483 & 482 respectively.

According to Steve Sosnick (chief strategist at Interactive Brokers LLC), Bitcoin’s November peak of nearly $69,000 was reached in an environment that allowed for easy money. In this environment, regulators dropped interest rates because the coronavirus pandemic threatened financial stability. The Federal Reserve signalling rate increases to curb inflation, Bitcoin could now have a harder path upwards and dig itself out of a slump.

Sosnick telephoned to say that patience will be required. “I don’t think there are the same circumstances in which money will flood like we saw before.”

Fireblocks, a crypto firm, buys a payments technology platform for $100 million

Fireblocks, a provider of infrastructure for cryptocurrency, has acquired First Digital. This stablecoin and digital asset payment technology platform is now part of the Fireblocks group.

Fireblocks and First Digital announced Wednesday that they had entered into a cash-and-equity deal. However, two sources close to this deal stated that the purchase price was $100m.

Last month, Fireblocks raised $550 million from institutional investors. This pushed its valuation to $8Billion.

Fireblocks will acquire First Digital to expand its existing payment capabilities, allowing payment service providers (PSPs), to accept crypto payments.

PSPs and large merchants want to satisfy customer demand for digital currency and crypto payments. However, offering these services can often be challenging due to high wallet integration costs and manual anti money laundering screening.

Fireblocks stated that First Digital will improve the solutions it offers for these issues.

Fireblocks Chief Executive Michael Shaulov stated that First Digital’s product is “amazing” and that it has the necessary leadership and know-how to make payments a success. He spoke to Reuters by telephone. “Specifically, the product they are bringing to market, I believe is very applicable for the mass market.

Shaulov stated that First Digital will also be launching a business unit within Fireblocks, which is “purely focused on payments” and ‘enabling our customers to accept and send using multiple types of cryptocurrencies.

First Digital offers stablecoins and cryptocurrencies that can be used to pay for goods or services. These cryptocurrencies are tied to fiat currencies like the U.S. dollars.

Ran Goldi, First Digital’s Chief Executive, said that the partnership was natural since the companies have been partners for over two years. He said that First Digital had received a lot of interest over the past six-months from companies that, three years ago, believed they were ahead of their time.

Merchants who are supported payment service providers can add the option to accept crypto payments through First Digital. The funds will be settled in crypto or local currency.

Under the agreement, all First Digital employees will be absorbed into Fireblocks

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