Bitcoin Falls Below $40,000 Due to Regulatory Concerns and Fed Risk permalink
Bitcoin suffered for a third day, temporarily falling below $40,000 for the first time since August, owing to increased regulatory scrutiny and a general sense of caution in global markets. As of 8:34 a.m. in Hong Kong on Wednesday, the largest cryptocurrency was little changed at around $41,000, after falling as much as 3.2 percent earlier. Over the last 24 hours, the performance of coins such as Ether, Solana, and Litecoin has been varied.
Fears of contagion from China Evergrande Group's debt issue, as well as anticipation that the Federal Reserve's impending meeting will herald a reduction in asset purchases later this year, are among the obstacles for investors.
“Before a collective sigh can be exhaled, Bitcoin needs to reclaim the 200-day moving average at $46,000 and consolidate,” said Antoni Trenchev, co-founder of crypto lender Nexo. Meanwhile, the United States agency that was once the cryptocurrency world's greatest hope is now delivering stern warnings to the industry that it is in danger of repeating the toxic atmosphere that existed prior to the 2008 financial catastrophe.
Acting Comptroller of the Currency Michael Hsu claimed on Tuesday that cryptocurrencies and decentralised finance might become dangers to the financial system, similar to how some derivatives brought the global system close to collapse more than a decade ago.