Crypto prices continue to fall after weekend sale-off

The cryptocurrency market faced a turbulent time over the weekend, with Bitcoin, the world's largest digital token, losing over one-fifth of its value at one point. Today, Bitcoin is trading below the $49,000 level, slipping by 3% to $48,930 USD. Alongside Bitcoin, Ether and other cryptocurrencies also experienced a decline in prices. To shed light on the recent market movements and offer insights into the future of crypto, Paul Domjan, the author of Chain Reaction, joined CNBC Africa for a discussion. Domjan highlighted the interconnectedness of the crypto market with global financial systems and the impact of recent events like concerns about inflation and the Omicron variant on market movements. He emphasized that crypto assets are evolving from being niche investments to integral components of the broader financial landscape, experiencing what he termed as an 'infrastructure inversion.' Domjan also touched upon the correlation between Bitcoin and Ether prices, noting that as these assets take on distinct technical roles, correlations between them may decrease in the future. Moreover, he pointed out that crypto's appeal in emerging markets, where central bank instability fuels demand for alternative assets. Domjan also addressed the upcoming regulatory discussions in the US, where major crypto players are set to testify in front of the House Financial Services Committee on December 8th. He expressed optimism that regulatory acceptance and integration of crypto into the financial system will be crucial for the market's continued growth and legitimacy. Domjan suggested that while challenges and setbacks are inevitable, the overall trajectory for crypto appears positive, highlighted by increasing liquidity, expanding use cases beyond trading, and growing developer interest in blockchain platforms. Despite occasional hurdles, the crypto market seems poised for further advancements in the future.