Bitcoin and Ethereum fall sharply in the framework of the Fed announcements and after statements by a former SEC official who recommended leaving the cryptocurrency platforms.
The crypto universe is experiencing a crisis situation this Thursday, after the United States Federal Reserve (Fed) will announce that it is stopping the rise in rates momentarily and will anticipate that it will continue raising it two more times throughout the year.
So, Bitcoin fell 3.83% in the last 24 hours, up to US$25,013 and Ethereum lost 5.64% and is located in the $1,644.5.
And these strong falls are explained by Fed rate projectionson the one hand, but also due to a complex context posed by the measures being taken by the United States Securities and Exchange Commission (SEC).
“What is happening is that, as FTX fell and there are many frauds and bank closures in the northern country, it is being very rigorous with the exchanges, the agency is taking action with Binance and Coinbase and that causes the values of cryptocurrencies to fall,” Santiago Amat, a cryptocurrency specialist, points out to Ambit.
Bitcoin hit a floor
Likewise, it indicates that the crisis of banks related to the crypto world that occurred in the United States also affects this dynamic. “In this context, there was a drop in the prices of cryptocurrencies this Thursday, when Bitcoin hit a key floor of $25,000”, describes Amat.
What made the situation worse, meanwhile, is that John Reed Stark, a lawyer who was part of the SEC, came out to say that investors should withdraw their funds from cryptocurrency exchanges in the context of the actions that entity took. held against Binance and Coinbase.
The crux of the matter is that The SEC considers cryptocurrencies to be securities that must be traded under a license. Reed Stark said he thinks they are risky and that regulators could have the battle won.
However, the projections of a large part of the market indicate that June will be a positive month for cryptocurrencies, therefore, for this investor this is a buying opportunity and he believes that these are “corrections that we expected as investors.”
News in development.-
Source: Ambito
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