Delta Blockchain Fund founder Kavita Gupta explained on Monday why she believes a “crypto winter is here” as bitcoin was trading below $ 30,000.
Speaking on “Mornings with Mary” on Monday, Gupta noted that “we are seeing one of the biggest falls in the [crypto] market in a long time “, as prices have been” reduced “from the all-time highs.
She noted that bitcoin and ether are currently trading at about half the price of their highs, which is why she believes “a crypto winter is here.”
Gupta also noted that the crypto market is currently undergoing a “correction” of its “crazy speculative maxims,” warning that “it looks like it’s going to stay.”
VOLATILITY IN CRYPTO MARKETS WILL CONTINUE IN THE NEXT MONTHS: EXPERT
Bitwise Asset Management CIO Matt Hougan also warned last week that volatility in the cryptocurrency market will remain for a while.
Speaking of “Varney & Co”. he warned that volatility will continue for the next three to six months, but noted that he believes “the long-term outlook for bitcoin is very strong.”
Along with the stock market, bitcoin has experienced a lot of volatility recently. On Thursday, for example, bitcoin fell to $ 25,000, its lowest level since December 2020, and then recovered to $ 30,000, according to CoinDesk. As of Monday morning, cryptocurrencies were trading below the $ 30,000 level, below their all-time high of more than $ 68,000 reached in November 2021.
Cryptography fell more than 35% last year.
|CURRENCY||COINBASE GLOBAL INC.||61.70||-6.17||-9.09%|
|BITQ||CONCEPTS MARKETED IN EXCHANGE OF TRUST IN CRYPTO INNOVATIVE BITWISE E||8.05||-0.57||-6.61%|
Bitcoin and other cryptocurrencies have had some difficult weeks forecasting and following the mid-point rise in Federal Reserve interest rates. It was the second of several increases planned this year, as the central bank seeks to combat rising inflation, which is at an all-time high that has not been seen in four decades.
The expectation is now that the Fed will take aggressive measures to try to curb inflation, which remains close to the highs of the last 40 years, according to April data released on Wednesday, which has reduced investors’ appetite for maintaining assets perceived as higher risk.
Last year, stricter monetary policy affected both stocks and cryptocurrencies.
Adding more fears to volatility in the cryptocurrency market was the disengagement from TerraUSD, a stable currency valued at $ 1, the Wall Street Journal reported on Thursday. The world’s largest stable currency by market capitalization, Tether, also fell briefly from its $ 1 value on Thursday.
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Stable currencies are digital currencies with securities linked to traditional assets, such as the dollar, another currency, or gold. Its correspondence with the dollar is what, in theory, makes it stable, however, the volatility in the cryptocurrency market last week challenged that presumption.
Gupta told presenter Maria Bartiromo on Thursday that the regulation of the U.S. Securities and Exchange Commission (SEC) on stable currencies is ultimately a positive development.
“Regulation should be in this space, anything when it’s called stable, which is supposed to be stable, but I think there’s also a whole field of innovation, which is going to keep happening in programmatic stable currency,” he said.
“I think there’s a lot of room for programmatic stable currencies to be in space with some kind of proper regulation, which we still don’t know if it’s over-regulation and regulation in space,” he added.
On Thursday, a senior SEC official indicated that stricter rules around cryptocurrencies could be approached, Reuters reported.
Referring to stricter regulations, “one place where we can see some movement is around stable currencies.”
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SEC Commissioner Hester Peirce referred to stricter regulations when he said during an online debate organized by the policy think tank of the Official Monetary and Financial Institutions Forum that “a place where we can see some movement is around stable currencies. “.
U.S. Treasury Secretary Janet Yellen said Thursday in a House committee hearing that the sharp drop in cryptocurrency markets highlighted the need for additional federal regulation to respond to the wave of speculative investment in currency whose secret is an important part of its attraction.
“We really need a regulatory framework to protect us from risks,” Yellen said of stable currencies.
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The Associated Press contributed to this report.