The price of cryptocurrencies varies depending on a number of factors. It is no surprise that this is a market known for its constant fluctuations and high volatility. Moving these assets even further, an event expected by investors approaches: the halving.
The halving takes place approximately every four years and marks a cut in the number of bitcoins produced in the world. In the next cycle, scheduled for April this year, miners will receive fewer crypto units.
According to Lara Mattar, Education specialist at Itaú Digital Assets, five main points affect and impact the prices of cryptocurrencies. The macro scenario is one of them. “Monetary policies around the world will directly affect the capital market and risk assets, such as cryptoassets”, he highlights.
Currently, according to the expert, we are experiencing a scenario of central banks reducing interest rates to stimulate the economy. Therefore, risky assets can benefit. The second point is unpredictable news. “This is a market that is still little known. This creates a scenario where there are more fake news which end up generating short-term speculation”, he explains.
In an interview with Financial Intelligence, Lara talks about the other points that impact the price of cryptocurrencies, the functioning of a blockchain network and how halving happens in practice. Check out the full content!
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