Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Articles about Cryptocurrency => Topic started by: scryptopia on July 28, 2022, 01:20:30 PM
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Bitcoin fell to its lowest point in more than a week as a result of investor trepidation in the wake of a potential Federal Reserve interest rate hike and increased regulatory scrutiny of the cryptocurrency industry.
As of 2:53 a.m. in New York, the largest token had fallen as much as 6.5 percent on Tuesday and was trading at about $20,904. The recent high fliers Polygon and Ether were down about 10%, while the MVIS CryptoCompare Digital Assets 100 gauge lost more than 5%.
The decline has dampened hopes for a long-lasting Bitcoin recovery and brought the cryptocurrency back to a trading range between $19,000 and $22,000. Before the anticipated 75 basis-point Fed rate increase on Wednesday, risk appetite is typically declining as a result of the tightening cycle that is robbing liquidity.
According to Katie Stockton, co-founder of Fairlead Strategies, "We've got some stabilisation over the past several weeks and that gave some folks optimism that perhaps a bottom was being put in place." We are not persuaded,
Digital currencies have taken a beating this year due to rising interest rates and well-publicized collapses like that of the cryptocurrency hedge fund Three Arrows Capital. Since 2022 began, the price of bitcoin has decreased by 55%.
Bear market squeezes are always extremely savage, according to Patrick Chu, head of institutional coverage for APAC at OTC trading platform Paradigm. "Macro forces haven't flipped for investors to really go long," he added.
As a result of the unrest, regulatory control of the sector is growing.
For instance, a US investigation is looking into whether Coinbase Global Inc.
Geopolitical unrest, with Russia reducing gas supplies to Europe and rising food prices raising worries about instability in developing economies, adds to the uncertainty regarding the path of crypto assets. This year, the US dollar is at a disadvantage to all other significant developed-market currencies, which is another obstacle for digital tokens.
According to Edward Moya, senior markets analyst at Oanda, "rising geopolitical tensions might give some underlying support for the dollar, which might reduce risk appetite and impact on cryptos."
Ali,
scryptopia