“The Fed announcements and the Jerome Powell’s pessimistic commentswhen he said that the rate stop would not last long, above all, made the price of cryptocurrencies fall”said Iñaki Apezteguía, co-founder of Crossing Capital, to Scope. That factor adds to other elements that play in the market in recent weeks.
In that framework, Bitcoin was not one of the most affected and fell 0.3% in the last week, up to US$26,322. For his part, Ethereum loses 5.64% and is located in the $1,644.5.
But the biggest crashes accumulated are given in Polygon (-19.2%); avalanche (-16.1%); and Cardano and Solana that share third place in this ranking with a 12.4% drop on a weekly basis.
“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.
A market with positive or negative prospects?
The crux of the matter is that The SEC considers cryptocurrencies to be securities that must be traded under a license. John Reed Stark, an attorney who served with the SEC, said he believes they are risky and that regulators may have the upper hand.
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.”
On the other hand, it was seen a fear situation regarding USDT, which lost parity with the dollar. “There was a movement to $0.96, which is little, but there was a movement of whales that made it sell a lot in exchange for USDC, which is the second most important stablecoin,” says Apezteguía. And he warned that this generated retracement, plus some downward entry in cryptocurrencies.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
