Cryptocurrencies Looking for Signs of Funding Reversal

Bitcoin It briefly fell below $26,000, leaving behind the worst week since November. After briefly falling to $25,878, the lowest level since March 17, the bullish bitcon reached a high of $26,989 yesterday. Thus, it experienced its worst week since November 11, with a weekly loss of 7.5 per cent. hundred. Ethereum, on the other hand, traded for just under $1,800 yesterday, down a 4% weekly loss.

LIQUIDITY PROBLEMS

There are a number of issues that crypto markets are currently facing, including low liquidity, pressure from US regulators on the industry. However, one of the biggest hurdles to the upside is the postponement of expectations that the US Federal Reserve (Fed) will halt interest rate hikes until after June. The possibility of the Fed raising rates again in June puts the long-awaited rally in cryptocurrencies on hold.

Bitcoin is up 59 percent this year, but prices have remained volatile as low liquidity exacerbates ups and downs. Kaiko research director Clara Medalie said there has been a “notable drop in market depth” for Bitcoin. Market depth refers to the ability of a market to absorb relatively large buy and sell orders.

THE COURTS ARE STRONG

When this is low, relatively small transactions can cause the price of an asset to rise or fall significantly. The crypto industry is at war with US regulators, accusing the US Securities and Exchange Commission (SEC) and the US government of failing to set clear rules. In March, the SEC warned US crypto exchange Coinbase of potential securities law violations. Coinbase CEO Brian Armstrong said the company is preparing for a year-long court battle with the SEC.

Leaving Canada

The world’s largest cryptocurrency exchange Binance announced on Twitter that it was pulling out of the country due to new stablecoin guidelines and investor restrictions. Changpeng Zhao, CEO of Binance, who is a Canadian citizen, retweeted the news after the exchange’s involvement. “We had high hopes for the rest of the Canadian blockchain industry,” the company said in a statement. Unfortunately, the new regulation regarding investor limits for stablecoins and crypto exchanges currently makes the Canadian market unbearable for Binance.”