BTC Falls Below $45K Amid Regulatory and Economic Fears, El Salvador Buys the Dip By DailyCoin

BTC Falls Below $45K Amid Regulatory and Economic Fears, El Salvador Buys the Dip
BTC Falls Below $45K Amid Regulatory and Economic Fears, El Salvador Buys the Dip

The price per dropped below $45 thousand per coin, prior to the opening of the U.S. financial market this week. There are a few possible reasons for the crypto decline including this week’s upcoming two-day Federal Reserve meeting where it’s expected that the Fed will talk about slowing its liquidity policy, calls for more crypto regulation, and a possible U.S. tax hike to pay for trillions in proposed social programs from Democrats in power.

Another contributing factor could have been the fact that last Friday represented a “triple-witching” day. That’s where options – contracts to buy or sell assets on a future day at a certain price – expired across three different asset types: stocks, stock indexes, and stock index futures. Friday’s expiry date involved trillions in traded assets under contract.

Lastly, global financial markets are responding negatively to news out of China that the world’s largest real estate asset manager – China Evergrande Group – could default on loan payments this week following new laws in that country restricting the size of real estate holdings. Evergrande stock dropped 10% in Monday morning trading for a 85% total decline from the start of the year.

Whatever the catalyst for this latest crypto sell-off, the overwhelming majority of top-20 cryptocurrencies have been in the red over the past 48 hours, with the only crypto assets in the green being stablecoins. Despite the slide, the President of El Salvador took to Twitter (NYSE:) today to announce that the country was adding to its Bitcoin bags.

Earlier this month, El Salvador officially rolled out Bitcoin as legal tender within its country. Despite a few hiccups at the launch, and pockets of protests against the digital monetary move, the country has noted that more than one million residents have downloaded its digital wallet, Chivo since the formal adoption of Bitcoin.

On The Flipside

Cryptocurrencies are not yet fully insulated from turmoil occurring in traditional financial markets, which can further compound the volatility that already exists within the crypto-space.

Why You Should Care?

This could be a big week for cryptocurrencies. A weekend story in the New York Times suggested that the U.S. Federal Reserve sees stablecoins as a significant threat to the economic vitality of countries around the world and that regulation is coming. A formal announcement against stablecoins during the Fed meeting this week could spur further crypto declines.


Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7 404 "Not Found"]
You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published.