To say that this year has been a roller coaster would be an understatement. The crypto market crashing is nothing new in the space. But with major losses at one point last month. Then two days ago another crash saw popular digital assets fall significantly lower than they were before.
All eyes have been on Bitcoin as it continues to fall. Many people point out that the decline of key stablecoins and macroeconomics. They are crucial factors in this downward spiral, but there’s more than just those two reasons at play here. In addition, Crypto investors expected decentralized technology would grant them immunity from inflation or other problems.
Crypto enthusiasts on Twitter noted that the crypto market space would become more restrictive in the future, after leaked documents were revealed to be what some are calling, “the 600+ page U.S Crypto Bill.” The gray areas of this new law have drawn much attention from those who believe it leaves room for government regulation.
The Binance coin suffered an 8% drop on its price over the past week. But managed to recover, selling at $288.98 on CoinMarketCap as of this writing.
The sudden drop in price of Binance Coin (BNB) caused a lot of chaos and confusion for investors, traders. Who had expected it to keep increasing as it already was.
Some say one of the factors behind Binance’s fall is that U.S SEC has started an investigation into them. To see if they violated any securities regulations in America. Which could have caused investors some worry.
The announcement of the DELX exploits led to a sharp decline for EGLD, currently selling at $63.38.
Virtual assets are seeing a major rise in prices, with some exceptions. One of these is the decline of ELGD and PAXG, tokens. Which track gold-backed ERC20 coins that monitor dollars per ounce value.
The decline of Bitcoin prices has been a norm in recent times. In November last year, many coins peaked but are now experiencing an economic crisis. Because the Fed’s aggressive liquidity tightening signals have created panic among investors worldwide.
The connection between traditional and cryptocurrency markets is a deeply interwoven one. When the value of either falls, it affects all other aspects including trading volumes across different pairs in both modes, according to experts.