Hello dear friends, just as it happens in fairy tales where villains are always lurking, so it happens in the real world and the particular case of the cryptocurrency market today some villains shook the price action printing a bearish turn that set off alarm bells in the market.
Among the main villain that caused the resounding price drop was the release of the Fed minutes, specifically about the scenario where Fed officials will be concerned about the strength of the labor market and point out the resilience of the economy to continue raising interest rates which would undoubtedly lower vulnerability in risk assets.
Another potential villain that could act negatively on the cryptocurrency market is the decisions of the Securities and Futures Commission of Hong Kong, which to date presented its regulatory proposal for cryptocurrency exchanges operating on its territory, which evidently could also affect the good development that the cryptocurrency price action had been presenting.
In the same vein, the third villain on the scene seems to be the regulatory advances of the SEC (Securities and Exchange Commission) as a factor that has triggered market volatility, and in the case of the cryptocurrency market the effect was evident.
In this sense, the current downward turn sets alarm bells ringing again in the cryptocurrency market, as there is an increase in regulatory risks and the Fed is unlikely to ease interest rate hikes.
SOURCES CONSULTED
Bolsamania Bearish turn in cryptocurrencies and bitcoin, worried about Fed and SEC. Link
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