How long
does forever last? Just over a year, if you're Elon Musk. Tesla has indicated
in its quarterly report that it has sold three-quarters of its Bitcoins, citing
uncertainty. T
he past
selling does not change the market disposition, as all transactions have
already been made. However, investor sentiment is perhaps the main driver in
this market, where a mathematical algorithm governs issuance.
And this
sentiment has been hit at a rather crucial moment. As a result of short-term
investors' frustration, BTCUSD failed to break away from its 50-day moving
average. The price stabilised at 23000 at the time of writing, hovering around
this trendline.
Failure to
cross this line in a sharp move is a bearish signal. The closest development
would be Bitcoin's return to the local support area at 19000.
Ethereum has
lost 5.7% in the past 24 hours, to $1480. Leading altcoins have fallen even
further, from -4% (Dogecoin) to 11% (Solana). Total crypto market capitalisation
fell 3.6% to $1.03 trillion, according to CoinMarketCap.
According to
CoinShares, capital inflows into crypto funds last week were $12.2m, with
$14.8m coming into the funds on bitcoin shorts. Regular bitcoin products saw a
net outflow of $2.6m.
The fall of
the crypto market was caused by "greed, ignorance and misguided risk
management", Galaxy Digital CEO Mike Novogratz said. He noted the collapse
of the Terra ecosystem, which was the trigger for the subsequent problems of
Celsius Network, Voyager Digital and Three Arrows Capital.
A bipartisan
bill to regulate the crypto industry in the US could pass as a full-fledged
document in 2023, Wyoming Senator Cynthia Lummis said. She said that some
lawmakers would need more time to handle the topic.
SEC chief Gary
Gensler said the crisis in the crypto market would require a reworking of
investor protection laws.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.
This article was written by FxPro FXPro at www.forexlive.com.
http://dlvr.it/SVFlYN
Comments
Post a Comment