The Blockchain Bulletin March 12: BlackRock CEO Warns of Rising Inflation

Hey Folks! Welcome to our latest edition of the blockchain bulletin, which covers insights that took the market in allure in the past 24 hours. Buckle up as we delve into the sea of information and coverage. BlackRock CEO Larry Fink has raised concerns about the impact of nationalist economic policies in the U.S., warning that these policies could increase inflation. Fink points out that these policies, which aim to reduce reliance on foreign labor, may also lead to inefficiencies and higher costs. 

In the midst of these economic challenges, BTC has seen a drop in value which fell below $77,000. This decline has reignited debates about whether the coin can serve as a reliable reserve asset, as economist Peter Schiff has criticized Bitcoin’s volatility, noting that its value has dropped by 30% since January. He argues that such fluctuations make the token an unsuitable choice for a reserve, particularly if its value continues to fall. Bitcoin supporters, however, maintain that the cryptocurrency remains a strong long-term asset, despite short-term price swings. Additionally, Schiff questions the U.S. government’s decision to establish a Bitcoin strategic reserve through an executive order, rather than seeking approval from Congress. 

Yet, in spite of the challenges faced, the institutional interest in blockchain technology has never been more robust, as evidenced by the VanEck registration of the VanEck Avalanche ETF in Delaware. AVAX is becoming a prominent name in blockchain because of its quick transaction speed with minimal cost. The very fact that VanEck is launching an ETF based on tokens means that the company is pinning its hopes on the future of this platform. 

Meanwhile, aberrations in Bitcoin’s prices continue to be the spotlight in the market, as it has recently fallen under its 200-day moving average. Analysts pointed at a strong support level of $66,000, speculating over Bitcoin’s upcoming price trajectory. 

Related: Arthur Hayes Predicts Bitcoin Bottom at $70K Before Rebound

Meanwhile, Ethereum has also been struggling, seeing an 8.42% decline in market position over the past week. Ethereum is currently trading at $1,916.41 but faces significant technical challenges. The cryptocurrency failed to maintain levels above $2,150, and this failure has led to concerns that Ethereum could fall to as low as $1,000 in the near future.

Certain worries about a possible recession, multiple trade disputes, and general economic uncertainties heat up the market’s volatility. Many reports indicate that, despite President Donald Trump’s electrons, Bitcoin and Ethereum have suffered serious losses due to such influences. The executive order established the United States Bitcoin reserve but rather failed to grow into something reliable, therefore evoking skepticism about its long-term ramifications on the entire crypto ecosystem.

In a market that has recently gone through a lot of twisting and turning and really is not showing any improvement to indicate that it is stabilizing, the two major cryptocurrencies, which attract most of the institutional interest, are currencies. But, while looking at these particular coins and what they have to offer the investors, the next hurdle, or what is coming to users, is Avalanche—like any other main banking technology within the ambit of blockchain and possibly outside it. Which one is temporary and which is permanent will eventually become clear. Traders and investors must wade through such waters as always, as they are now set to continue evolving.

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