Cryptocurrencies reach almost a 6-month low. At the end of last week, the most popular among them – bitcoin and ether – literally collapsed, with total digital tokens wiping out $ 1 trillion from their capitalization since reaching their peak last November, according to CoinMarketCap.
Bitcoin fell to just over $ 38,000, and the second-largest digital currency, ether, fell below $ 3,000, with bitcoin nearly 50 percent below its peak of nearly $ 68,000 in mid-November and its lowest level since July 2020. .
“Bitcoin and the entire cryptocurrency market remain dependent on macroeconomic factors,” financial analysts Sean Farrell and Will McIvoy of Fundstrat Digital Asset Research were quoted as saying by Bloomberg.
Wall Street predicts the end of the “golden age” and the beginning of the bitcoin era
Gold may soon lose its status as a universal “store of value”
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What are the expectations for the crypto market?
Expectations and forecasts related to the global crypto market have always been speculative. Researchers point to the lack of regulation as a major barrier to mass acceptance of crypto. Increased government oversight, combined with the move by several countries to look at digital versions of their national currencies, is likely to lead to much more regulatory activity in 2022.
The cryptocurrency comes amid growing concerns about high market risk. Therefore, more and more forecasts indicate that the price of bitcoin is likely to continue to fall.
Regulators in the UK, Spain and Singapore have proposed tightening rules to promote cryptocurrencies for inexperienced investors, while Russia’s central bank has proposed a total ban on cryptocurrencies.
Against this background, the US Securities and Exchange Commission (SEC) has taken a total of 97 coercive actions worth $ 2.35 billion against digital asset market participants since 2013. This is shown by the data from a report by Cornerstone Research, quoted by the American media.
According to the report, 58 of these actions are judicial and the remaining 39 are administrative proceedings. Of the fines of $ 2.35 billion, $ 1.71 billion were imposed after litigation and $ 640 million from administrative proceedings.
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Bitcoin and ether have reached new record highs
Demand for digital coins has risen sharply among large investors
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Virtual money has become synonymous with the withdrawal of speculative investment, caused by the prospect of tighter monetary policy in the United States. Recently, the movement of bitcoin has followed the fluctuations of technological stocks, which are under pressure. On January 20, the technology index Nasdaq 100 collapsed and entered into correction.
Attempts to regulate the cryptocurrency market are also increasing
“Of the 20 enforcement actions taken in the United States against various participants in the cryptocurrency market and filed in 2021, 65% are fraud, 80% – for infringement of unregistered securities, and 55% – for both.” , notes the Cornerstone Research report.
At the same time, there is an escape from risky assets. Last Friday, it also hit Wall Street’s technology and Internet companies, which have been a favorite of investors for the past two years. Meta lost over 4%, Amazon almost 6% and Alphabet over 2.5%.
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The main crypto forecasts for 2022
According to financial analysts
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