Definitely a period of high tension in the world of crypto.
The cryptocurrency sector has now accustomed us to truly tremendous ups and downs. The Chinese ban hits them, but then the sec decides to approve the Bitcoin ETF. Central banks warn against investing in it, but then Goldman Sachs says Bitcoin is a better haven than gold. In short, this sector has many admirers and many detractors. Certainly it is a new reality that attracts a little for its earnings and a little frightening for its ephemeral nature. But for some time now, block chain-based coins have been feeling a noticeable weakness. Bitcoin reached its all-time high on November 10, reaching the important threshold of $ 69,000. But since then it has progressively lost 18%. Shiba Inu is sinking by as much as 60%, so much so that there were uncontrolled rumors about crypto on the internet. In short, a general weakness that is a bit of a mystery.
What are the causes of these collapses
It is difficult to say whether these are only taken for benefit, even if of a large entity, or if there is something else underneath. But many fear that the real problem is regulation. Up to now, cryptocurrencies have lived in a sort of far west of laws and regulations. This has allowed them to grow a lot. The crypto user has no guarantee and does not benefit from any protection. But the lack of rules has also attracted to this world the underworld eager to launder dirty money in an easy way. But today things are changing. President Biden presented a first embryonic draft of crypto regulation. It is really a minimum of obligations for those who work there and for intermediaries. But this was probably enough to change the sentiment of the crypto world.
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Also because other international regulators want to regulate this sector and this can only shake the waters even more.
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It will be seen over time whether these regulations will ditch cryptocurrencies or make them more attractive.