Is the crypto/tech relationship broken?

A noticeable difference in performance may be on the way, although it may be too early to tell. Tech saw a massive selloff last week after weak earnings news, but cryptoassets largely held their own.

This contrasts with previous months where stocks, heavily linked to crypto-assets, suffered setbacks. Indeed, price stability has become an increasingly important story for Bitcoin and Ether since June, with correlations appearing to have become somewhat disconnected.

Bitcoin, for its part, saw a surge early last week, taking the crypto asset above $20,000 on Tuesday, where it continues to hold this morning. The crypto-asset saw a short sell-off on Friday that took it below $20,000, but has since rallied to around $20,300 this morning.

Ether saw a similar price change, reaching above $1,450 on Tuesday. However, the crypto-asset has continued to rise, trading above $1,500 at the end of last week and currently above $1,560.

Dogecoin rises after Musk buys Twitter

Dogecoin saw a huge price increase over the weekend following Elon Musk’s acquisition of Twitter. Investor expectations for the token have risen, as Musk has repeatedly stated that it could be used as a basis for transactions on the social media site.

Dogecoin has fallen around $0.06 since the middle of the year, leaving the ATH of $0.5604 on the eToro platform in May of last year. But Musk’s rally took the price back above 0.125 for the first time since May of this year.

Investors should treat these price increases with caution. The recent surge catapulted Dogecoin to the sixth largest crypto-asset by market capitalization, ahead of stocks like Cardano. While it’s entirely conceivable that Musk’s decision changed the case for token investing, if you look at other companies like Tesla, adoption has been limited.

Hong Kong embraces crypto

The Hong Kong government has issued a policy statement on digital assets in the region, reversing previous skepticism towards the sector and launching a consultation on improving the regulatory environment.

The special administrative region had previously said it wanted to strictly control crypto-assets on stock markets, but appears to have made a complete reversal, calling the sector a “dynamic sector and ecosystem” while laying out several plans to create risk management. controls and promotes sustainable innovation.

Hong Kong is not the only city that has changed course to a more melodic rhythm with cryptocurrencies. The EU, UK, US and other regions are all moving forward with proactive and accommodating regulatory frameworks for crypto-assets. This is a potentially exciting time for the industry, which, when properly coded, can further reassure users and businesses while driving innovation and growth.

Google Cloud Launches Ethereum Node Hosting

Google Cloud announced via a blog post that he was launching a “Blockchain Node Engine”. The firm specifies that it will be a fully managed node host for web3 development. The project will mainly focus on the Ethereum blockchain for now.

Host nodes are a data and energy intensive process. It makes sense for companies like Google to take an approach to this emerging technology because it allows other companies to develop ideas, simply by using its platform to do so.

In this way, the company can bypass the labor-intensive and cost-intensive innovation and development process and focus on hosting this environment. It’s also a pro quo price for businesses that choose its platform, as it takes some of the stress out of building and hosting their nodes, leaving them the space to build digital applications.

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The entire content of this report is provided for informational purposes only and does not constitute financial advice. eToro makes no representation and assumes no responsibility for the accuracy or completeness of the content of this publication, which has been prepared using publicly available information.

Cryptoassets are volatile instruments that can fluctuate wildly in a very short period of time and are therefore not suitable for all investors. Apart from CFDs, cryptocurrency trading is unregulated and therefore not overseen by any European regulatory framework. Your capital is at risk.

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