U.S. FED tends to adopt stricter regulatory measures against cryptocurrencies
Bitcoin is dropping below $42,000, marking its biggest decline in recent months. In part, the reason is the U.S. Federal Reserve, which has been more aggressive, rather than neutral, toward cryptocurrencies.
Why is it so important?
- Negative attitude of the U.S. government to cryptocurrencies may affect the work of major cryptocurrency exchanges, such as Binance.
- It can affect the exchange rates of all cryptocurrencies.
According to the Reuters news agency, the latest meetings of the U.S. Federal Reserve showed that the regulator is tending to be more aggressive towards cryptocurrencies in general. This fact stops investors from buying crypto assets because of the increased level of risks.
However, along with these reasons, another factor behind the Bitcoin's fall in value is the market's uncertainties: “Although sharp, the most recent pullback in the digital asset market was by no means unexpected. Previously, we warned that uncertainty in the markets and weak technical fundamentals made a drop to low $40k levels entirely possible,” Mikkel Morch, Executive Director & Risk Management at crypto/digital assets hedge fund ARK36 said.