BTC was nearly half of its all-time high. What's Happening to the Cryptocurrency Market?

Cryptocurrency-aware traders have long been used to the rise and fall of Bitcoin.

Since the start of 2022, Bitcoin has fallen below $36,000. On January 23 Beijing time, the price of Bitcoin once fell below $35,000 apiece, its lowest level since September 2021.

According to data from Coindesk, as of January 23, 8:14 p.m. BST, the Bitcoin price was $35,636.13 apiece, down nearly 20% in the past week and nearly 30% this year. .

As of 8:12 p.m. Beijing time on January 23, Bitcoin's liquidation was $1,757,400 in 1 hour, $747.82 million in 4 hours, and $200.772 billion in 12 hours.

In fact, after a record high of $68,928.9 apiece on Nov. 10 last year, Bitcoin is now down more than 40%, entering a volatile declining channel, marking the smallest decline since 2018.

Many market analysts have said the Federal Reserve has tight financial regulation, broad tech sales, and in many countries mining and regulation. Adhering to Bitcoin's "trading chain" from trade to e-commerce are the main reasons why . Bitcoin fell.

World wave control has returned

In the new year, cryptocurrencies appear to be facing more global regulation.

Spain's National Securities Market Commission announced on January 17 that after criticism erupted from internet celebrities promoting cryptocurrency on social networking services (SNS), it would ban the publication of the crypto -currency by public debt, the first country in the country to act. . European Union.

In particular, the CNMV urges consumers and businesses to report at least 10 days in advance and warn of cryptocurrency risks while supporting their operations. Otherwise, you will be fined. "If the media is not mentioned in the administration, there is skepticism. It is a new place for us and for them, and the friction is non-existent, but when it is introduced in certain places, it does not was not," Rodrigo Buenaventura, the party's deputy premier, said: "In the past, in the past, conflicts have always existed," he told The Associated Press.

Around the same time, the Monetary Authority of Singapore (MAS) also restricted the promotion of cryptocurrencies. "Recently, some Digital Payment Token (DPT) providers have advertised their services online or in public places, allowing consumers to trade DPT. There is a misunderstanding of all the risks involved. It's true that's a perspective. DPT Services." MAS stated that DPT service providers may only market or operate their own or more websites, mobile phones, or advertising media.

Two days later, on January 19, the UK Financial Institutions (FCA) requested a review of their regulatory requirements on the sale of high-risk investments to the public in response to the financial risks involved. "There are a lot of people who are invested in products they don't understand and that's very dangerous," said Sarah Pritchard, chief executive of FCA. Cryptocurrency advertising. Previously, the UK Treasury said that the regulation of digital tokens would be the responsibility of the FCA.

In comparison, Russia is getting heavier than cryptocurrencies. On January 20 local time, the Central Bank of Russia announced that it would propose a ban on cryptocurrency and the mining industry with the aim of banning all businesses affecting the Russian economy.

The Central Bank of Russia has noted that cryptocurrency comparison payments are unreliable compared to traditional payments. However, due to the anonymity of the changes, the benefits of the change have been widely used in criminal cases. “Currently, the participation of financial institutions in the cryptocurrency industry is restricted, but the volume of commodities affects the market and currencies (ETFs). develops.”

The Russian Central Bank has stated that "in the long term, the potential for using cryptocurrencies as a method of payment is limited." The bubble forms in the market.

The Bank of Russia also noted that cryptocurrencies, like the dollar, restrict monetary policy freedom, which could force the central bank to regulate the currency by setting interest rates to increase inflation. This will reduce the ability of households and businesses to buy on credit. "For emerging markets, including Russia, the impact on financial security is greater with cryptocurrencies, especially since they prefer traditional currency and misunderstand the currency creator."

To reduce threats from the growth of cryptocurrencies, the Central Bank of Russia announced a ban on the publication and circulation of cryptocurrencies in the Russian Federation (including crypto exchanges and trading platforms). peer-to-peer exchanges), prohibiting financial institutions from investing in cryptocurrencies and other financial products, and prohibiting the trading of cryptocurrencies.

However, Russians can still hold foreign cryptocurrencies, and those who own foreign currencies can trade cryptocurrencies, says Elizaveta Danilova, director of the Central Bank of Russia's financial watchdog. At the same time, he warned that regulators would monitor the holdings of domestic investors. “It is very important to prohibit the use of Russian financial infrastructure to obtain cryptocurrencies, and we believe this will remove a significant part of the risk and help reduce the popularity of cryptocurrencies.”

The construction industry represented by the United States has always been patient with cryptocurrencies. However, the United States Securities and Exchange Commission (SEC) has made it clear that cryptocurrency exchanges will be a key part of digital assets by 2022.

At the Jan. 20 regional meeting, SEC Chairman Gary Gensler said he hoped to take steps next month to bring the trading platform under the direct scrutiny of financial regulators. “Further research is needed to get the kind of protection cryptocurrency traders get when trading commodities or other assets.”

bearish and bullish

Jason Deane, an analyst at digital asset research firm Quantum Economics, said:Rumors of Russian spending bans, the impact of austerity measures and ongoing governance issues in some areas now have a bigger impact on the economy and the economy. Investment decisions are more fundamental for long-term investments in cryptocurrencies."At the same time, the growing use and adoption of Bitcoin in hyperinflationary markets has created a chaotic economy."

Jason Dean wants cryptocurrencies like Bitcoin to see "volatility and directionless trading" in the short term, and hopes it won't be too strong in the future.

UBS analyst James Malcolm spoke for himself., cryptocurrencies usher in the cold winter. According to data from UBS, there is now almost no short Bitcoin holdings.

According to James Malcolm, investors are aware that cryptocurrencies are not a better option given their low volatility and limited resources. And in the future, we will face stricter international rules,“Stablecoins and decentralized finance projects with inflation will face government threats in the months ahead.”

However, there are still big people on the internet who claim to be bullish on Bitcoin. A few days ago, Sam Bankman-Fried, CEO of cryptocurrency trading platform FTX, said in a press interview:He saw the value of Bitcoin surpass $100,000. "Of course, Bitcoin's performance may not be as good as expected"At the same time, he said it was only a matter of time before better Bitcoin ETF results emerge from consumer sentiment.

Contrary to Sam Bankman's prediction, Michael Saylor, founder and CEO of MicroStrategy, the world's largest trading company holding bitcoins, is highly regarded.Recently, he has repeatedly stated that he will not sell his Bitcoin investments despite having a long trading cycle.According to him, Bitcoin is the best way to fight inflation. He estimates that the value of Bitcoin will start at $600,000 and then rise to $6 million.