Wednesday’s cryptocurrency trading saw Bitcoin dip below the $27,400 level in the face of rising US bond yields and overbought signals. It seems this market, like many others, is holding its breath in anticipation of further possible interest rate hikes by the US Federal Reserve.
Bitcoin was not the only cryptocurrency experiencing a decline. Ethereum also missed the mark, sliding below the $1,650 level. The global crypto market cap suffered a 0.89% blow, bringing its total value to approximately $1.08tn.
Surprisingly positive results from the Job Openings and Labor Turnover Survey (JOLTS) strengthened 10-year bond yields, which are experiencing the best performance since 2007. Another shadow hanging over the crypto market is the Sam Bankman-Fried scandal and trial.
Although it does not impact cryptocurrency movements directly, it did stir the notion that it is not just Bankman-Fried who is on trial but cryptocurrency as an unregulated industry. Many believe this court case will highlight the inherent dangers of virtual currencies.
A New York Times headline,
Crypto Goes on Trial, as Sam Bankman-Fried Faces His Reckoning
This headline sparked some debate. Experts maintain that the two entities are not synonymous, and fraud can be committed with any asset, not just cryptocurrency.
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On a positive crypto note, Ripple Labs received the green light to conduct payment settlements in Singapore. This is a prominent step forward for cryptocurrencies in general, as this licence from one of the world’s leading economic hubs can lead to greater technology adoption.
