Hello everyone, good evening, how are you all? I hope we are all fine.
The cryptocurrency market has seen a
correction in almost the last month. Where the crypto correction has occurred
since the beginning of 2022. As of today's trading, Bitcoin and the nine other
large-cap cryptocurrencies have mostly lost 20%-40%.
There is even a correction of almost 50%
in almost the last month or year-to-date (YTD). Now, Bitcoin is still trading
in the range of US$ 35,000-US$ 37,000. Even in the last few days, Bitcoin has
tended to stagnate at the level of US$ 36,000.
The volatility of the crypto market also
tends to be high, where in the morning, Bitcoin and other cryptocurrencies tend
to strengthen, but during the day and into the evening, crypto is corrected
again.
The cryptocurrency market has corrected
since the start of 2022 trading, along with the correction in technology stocks
since the beginning of the year. This is because they are still worried about
the potential tightening of monetary policy by the United States (US) central
bank, the Federal Reserve (The Fed).
"It's possible that macroeconomic
concerns, such as the Fed's response to inflation rates, have facilitated more
risk-reducing activity in general," said Juthica Chou, head of OTC options
trading at crypto trading platform firm Kraken.
"The recent drop in prices, coupled
with high volatility, could lead to further selling as investors and traders
seek to reduce risk," Chou added. In addition, investors are still worried
about rising global inflation. Inflation that is still hot has forced several
central banks in the world, especially developed countries, to raise their
benchmark interest rates to reduce the heat of inflation.
Investors are also assessing the impact of
further regulation on the cryptocurrency market, where this is a crackdown by
some state regulators on the crypto industry.
7.819 SRY