Crypto Receives Some Bad News from Friendly Portugal

The crypto industry is looking for good news much like the rest of the asset classes in these times of concern about the health of the economy. 

For a long time, cryptocurrency evangelists have claimed that bitcoin (BTC), the largest digital currency, can be used to hedge against inflation, since you know exactly what the supply is. 

But the current economic downturn has just erased that argument. 

Indeed, soaring prices for goods and services have never been so high in 40 years but BTC fails to take advantage of it. Since January, BTC has lost 72.1% of its value compared to its all-time high of $69,044.77 set on Nov. 10, according to data firm CoinGecko. 

BTC is currently trading around $19,250.

The Talents Are Leaving

Overall the crypto market has lost over $2 trillion since its November highs.

Cryptocurrencies, which are the public face of the crypto industry that wants to disrupt the traditional financial services sector, are now increasingly considered risky assets in the same way as the shares of technology groups. Basically, when there are doubts about economic growth, investors liquidate those assets that are bets on the future.