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Bitcoin has lost 2% over the past 24 hours to $20.77000, down nearly $1,000 from Wednesday’s peak. The first cryptocurrency followed stock indexes falling sharply due to continued dovish statements from Federal Reserve officials, along with signs of growing weakness in consumer demand and business activity.
Technical analysis suggests that the recent pullback is a legitimate correction to short-term overbought conditions that followed the year-long rally.
The correction can only be classified as a further pullback after the BTCUSD currency pair stabilized below the $19.5000 level, while the 200-day moving average and the 61.8% Fibonacci retracement level crossed just above this level.
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Despite the serious challenges facing the cryptocurrency industry, Web3 development activity has increased over the past year, according to research from infrastructure firm Alchemy. The number of smart contracts deployed on the Ethereum mainnet during the fourth quarter of 2022 increased by 453% to 4.6 million compared to the previous quarter.
The US Securities and Exchange Commission (SEC) will continue to increase pressure on the cryptocurrency market, including legal action, according to a recent report from consulting firm Cornerstone Research.
Last year, the SEC took a record number of enforcement actions against the industry, bringing 24 cases to US federal courts and six administrative actions.
Bank for International Settlements (BIS) experts presented three main options for regulating the cryptocurrency industry. This includes banning certain cryptocurrency transactions, isolating the industry from traditional finance and the real economy, and regulating cryptocurrencies like traditional markets.
Investor and Shark Tank TV star Kevin O’Leary said FTX’s collapse was the first in a “long line” of unregulated cryptocurrency exchange collapses. He said that all non-regulated exchanges are currently experiencing massive outflows of client funds. The refusal of some accounting firms to work with cryptocurrencies is also obvious.
This article was written by Alex Kuptsykevich, Chief Market Analyst at FxPro.
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