The dawn of another bearish cycle for Bitcoin (BTC) is hobbling crypto markets, breaching beneath a $29,000 threshold, a solace sight unseen for a month up until Monday. The lower altitude finds BTC resting at $29,100 early Tuesday. This substantial drop in its value arises in light of the Federal Reserve’s projected rise in interest rates by 25 basis points to be declared on Wednesday. Observers like Mike Schwitalla, head of trading at Crypto Finance AG, have their gilded eyes peeled on the investor reaction to this anticipated decision. Fears of a further decline in BTC value hinge on potential market sell-offs, with predictions panging from $28,000 to as far as $25,000 should this eventuate.
Unfolding parallel but beyond the realm of BTC, the U.K.’s data watchdog, the Information Commissions Office (ICO), is focusing its scrutiny on Worldcoin. This brainchild of OpenAI CEO Sam Altman seeks to endow its holders with a digital identity proving their concrete humanity. Questions arise from the requirement of this data-dependent venture for a clear basis for processing personal data and the potential ramifications when relying on user’s consent. As the project burgeons on, ICO spokesperson pointed out that consent needs to be freely given and fully with drawable leaving no detriment in its wake.
Whilst on one hand, crypto markets suffer from hemorrhages with recent bleedings amounting to a staggering $6.5 million in weekly outflows, ETH and Ripple’s XRP on the other hand, continue to lure investors despite the downturn. With the BTC price buckling below $30,000, these cryptos are on the rise. Enthusiasts are left speculating on the scarcity of optimism investors have experienced about BTC following the rally spurred by asset management giant BlackRock’s application for a BTC ETF.
Meanwhile, Binance, the world-leading digital assets exchange, continues its colossal ascent with over 50% of the total trading volume globally emanating from it. Smaller exchanges undergo profound pressure with the downturn in market activity. Despite the benefits to Binance, the increased activity concentration does leave the gargantuan exchange a precarious target of regulatory uncertainty repercussions, which, in turn, tend to weigh heavily on crypto prices.
To sum up, the crypto market sees itself caught up in a simultaneous cataclysm on multiple fronts: BTC price fluctuations, scrutiny over novel crypto projects, and the looming shadow of regulatory uncertainty over industry giants. It’s indeed a web of factors interweaving the expansion and evolution of crypto markets.
Source: Coindesk
