In one of its most recent publications, the top international accounting company KPMG International asserted that the cryptocurrency sector has recently shown signs of maturing.This is true notwithstanding the ongoing military war between Russia and Ukraine and the widespread, record-breaking inflation in several nations.
The Ghastly Truth
Numerous events, including the COVID-19 health catastrophe, growing prices, the armed war between Russia and Ukraine, and the oil crisis, have either directly or indirectly contributed to affect a significant part of the globe.
It is also important to note that, despite the fact that most digital assets trade well below their record high values from 2021, investments in the sector have continued.FTX, Trade Republic, and Fireblocks, among other well-known organisations, have allotted billions of dollars to support start-ups that are a member of the ecosystem.
In addition to claiming millions of lives, the coronavirus pandemic had a significant impact on the world economy.The problematic mass printing of fiat currency by some central banks and the stay-at-home regulations created the conditions for a future financial catastrophe because the increased supply of money in circulation did not compensate for the production’s disruption.
Another factor that drags down the economy is the energy problem, which first started to affect some regions in 2021 but has been worse over the past several months as a result of the military confrontation between Russia and Ukraine.
As a result, countries like Turkey, the UK, the USA, and others have experienced decades-long periods of high inflation.
The nation with the greatest land area in the world stopped some of its gas shipments to numerous countries that had previously imposed sanctions on it.The concern grows as Europe’s winter approaches since certain states run the risk of running out of energy during the harshest months.
Unsurprisingly, practically all financial markets, including the cryptocurrency industry, have suffered as a result of the negative trends.The market value of all cryptocurrencies worldwide is at under $1 trillion, down from almost $3 trillion in November of last year.One example is Bitcoin, which is at about 70% below its ATH from less than a year ago.
In contrast to that obvious downturn, KPMG International thinks the market for digital assets is still developing.
Due to the uncertainties in traditional finance, according to the consulting firm, many investors concentrated on the sector during the first half of the year and invested billions of dollars.
Trade Republic, a German internet broker, collected $1.1 billion to help firms that specialise in digital assets.The cryptocurrency custodian Fireblocks successfully raised $550 million and received a $8 billion valuation.
The exchange that Sam Bankman-Fried founded, FTX, closed a $400 million Series E investment of venture capital and is now valued at over $32 billion.
$14.2 billion has been invested in the cryptocurrency market overall since the year 2022 began.This is more than the $32.1 billion in 2021, but considerably less.However, it should be noted that in 2019 and 2020, interest in the cryptocurrency sector was not particularly high.Speaking of record investments in 2021, they could be attributed to the bull run that occurred when bitcoin and numerous altcoins hit record highs.
Additionally, huge organisations like Tesla purchased Bitcoin worth billions of dollars, and well-known businesses like Expedia, PayPal, Rakuten, and Etsy began accepting cryptocurrency payments.The crypto efforts of KPMG
In 2020, the organisation first made contact with the bitcoin sector.It then unveiled an initiative called KPMG Chain Fusion, which aids established financial institutions in offering properly managed digital asset services.
The Canadian affiliate of KPMG invested in its first cryptocurrencies in February of this year by adding Bitcoin (BTC) and Ether (ETH) to its corporate treasury.
A few months later, it hired Ian Taylor to oversee its Web3 initiatives and the company’s British crypto team.He has a wealth of knowledge in the industry and serves as an Executive Director of CryptoUK.
News Summary:
– Cryptocurrency Markets Continue to Develop Despite Conflict and Inflation (KPMG)
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