Investor sentiment was impacted today by the fallout from Silvergate Bank and a lawsuit against KuCoin led by U.S. regulators. After investors were frightened by Silvergate Bank’s demise, a U.S. regulator-led lawsuit against KuCoin exchange, and hawkish remarks from Jerome Powell, chair of the United States Federal Reserve, the cryptocurrency market is down today.
On March 9, the price of Bitcoin fell to a monthly low of $20,207. Now that the crucial $21,600 level has been broken, traders are concerned that the bear market lows could be re-established. A bitsoft360 is one of the best platforms for gaining information
Ether tickets, which are down $1,683 and also hit a monthly low of $1,425, have the same concerns. This has led analysts to believe that the bears are in charge of Ether price.
Increased Crypto Outflows Result From the US Crackdown
KuCoin is now included in the crackdown on the crypto market. Letitia James, the Attorney General of New York, announced a lawsuit against KuCoin, a major cryptocurrency exchange, on March 9. The lawsuit also claims that KuCoin failed to register as a broker-dealer because Ether is a security traded on the exchange.
The SEC’s recent crackdown on centralized staking and recent enforcement actions against Paxos and Binance have also impeded the development of long-term bullish momentum across the market. The recent enforcement action may be beneficial to some decentralized staking protocols; however, the crypto regulatory environment is still murky, and market volatility is frequently brought on by uncertainty.
Regulators and the cryptocurrency industry have a long history of disagreement due to misperceptions or mistrust regarding the actual use case of digital assets. Some believe that lawmakers in the United States are enraged by the crypto industry following the FTX implosion. The most recent dispute centers on how customer funds can be used by centralized exchanges.
With Silvergate Bank’s liquidation, authorities are expected to monitor the sector even more closely. Silvergate was one of the primary on-and-off ramps into the cryptocurrency market, which may have made it more difficult for the industry as a whole to move liquidity.
While it is up for debate which U.S. agency is to blame for Silvergate, banks are already taking strong anti-money laundering measures to prepare for additional crypto regulation.
Starting in 2024, Crypto Prices have Returned To Normal
With the Bitcoin price reaching $25,300 on February 21, 64% of BTC investors reached profitability, the cryptocurrency market and Bitcoin had experienced a strong start to 2024. Revenues for struggling Bitcoin miners increased by 50 percent to $23 million, indicating a recovery for the industry.
Investors’ tolerance for risk is likely to remain low in the interim, and potential crypto traders might consider waiting for indications that inflation in the United States has reached its peak or for the Federal Reserve to indicate that smaller interest rate hikes are possible. A roadmap for crypto industry regulation that is clearer would also help raise industry sentiment.
Will BTC Rise Again?
He further gave an illustration of one of the explorers of market knowledge firm Glassnodes that expressed that nearly 60% of coursing Bitcoin has not yet moved in 2022, and long haul financial backers are as yet bullish on Bitcoin. ” If there are no macroeconomic obstacles, Bitcoin could rise once more in 2024.
Things To Be Aware About Bitcoin
Within the next few months, Bitcoin prices are expected to fall as low as $5,000, according to Standard Chartered. That was the kind of call made by the bank’s global head of research, Eric Robertsen. Cryptocurrency businesses and exchanges are finding it increasingly challenging to maintain liquidity, leading to bankruptcies and a decline in investor confidence.
Robertsen asserts that the massive sell-offs of tech stocks and the subsequent decline in share prices have already had an effect on Bitcoin. It will be 70% cheaper than its current market price of $17,000 when it reaches $5,000. If you want to get in while prices are low, Bitcoin could be a great investment opportunity; however, this is only for those who have some stake in the game.
There is currently no need to panic. This was one of the “surprise” predictions that Standard Chartered made for 2024. Our baseline opinions are different from those of Standard Chartered. Even harsher were the estimates from the European Central Bank.
Despite a rally in the fourth quarter, it predicted that Bitcoin’s volatility and fluctuations in 2022 would end the digital currency. Ulrich Bindseil and Jürgen Schaaf assert that the failure of FTX and the subsequent decline in the price of bitcoin to well below $16,000 were foreseeable prior to the failure of FTX.
Conclusion
Increased crypto outflows as a result of U.S. crackdown Recent enforcement actions against Paxos and Binance, in addition to the SEC’s recent crackdown on centralized staking, have hampered the market’s ability to sustain bullish momentum.
