Cryptocurrency LUNA’s sudden crash last week preceded a bearish market (where value falls by more than 20 percent), with various currencies following the ill-fated token in trending down. Bitcoin and Ethereum have both dropped by two points, while Doge and Solana have fallen by 3.39 and 7.56 points respectively. But Michael Kamerman, CEO of leading trading platform Skilling, told Express.co.uk that cryptocurrency will not only bounce back – it will change the UK economy, in a way that can help the average UK consumer.
Mr Kamerman said: “Cryptocurrency is going to be one of the leading innovations of our generation.
“What’s going on right now is just kind of a natural kind of cyclical activity that’s proven to take place with cryptocurrencies.
“If you look back at the price of just looking at Bitcoin, you’ll see it goes through the wave.
“We’re going through that wave right now.
“It will be a mainstay for the British economy because the British are technology first, innovation first.
“Particularly compared with the American economy, even with the Chinese economy that bans things like mining. But it’s going to be a world changing innovation.”
Mr Kamerman added the current downturn is even “probably a good thing that we’re going through a down cycle right now to kind of cleanse the ecosystem and wash away some of the low value projects.
“It will rise again, and it will change the British economy. We’re still in the prologue of this story.”
Cryptocurrencies are inherently highly volatile, due primarily to the lack of regulation on the market.
There is no regulation for the bulk of the market, and momentum is now growing to put some in place.
Plans for the UK to more closely regulate cryptocurrencies were laid out in April, with Chancellor Rishi Sunak highlighting the potential long-term benefits of integrating cryptocurrencies to the economy, including providing jobs and security for investors.
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Market analysis from Bitfinex, a cryptocurrency exchange based in the Virgin Islands, has pointed out that institutions are venturing into the market.
The exchange wrote: “The recent market volatility that we’ve witnessed is drawing increasing numbers of institutional investors into the space, especially those with an interest in derivatives.
“This belies the outflow that is being seen in digital token investment products indicating that interest – in Bitcoin in particular – remains high.”
Bitcoin recently reclaimed the key benchmark of a $30,000 value.
While this has since dropped slightly, it shows promising signs that the currency may yet return.