This week in crypto: assets dropped due to growing regulatory risk
What macro events are causing crypto assets to dive?
Crypto prices have pulled back on increased macroeconomic and regulatory risk. In this week’s Crypto Verse, we take a glance at what’s happening in the crypto market right now and analyse the technicals of Bitcoin, Ether and Litecoin.
Crypto pulls back on macro, regulatory risk
Crypto-assets dropped last week, amidst growing market and regulatory risk. On the macro front, strong US employment data along with a beat in inflation numbers added fuel to the hawkish rhetoric from US Federal Reserve policymakers.
While traders had positioned for only two rate hikes from the Fed this year at the outset of 2023, futures pricing now implies four hikes, including the one that occurred in January.
The value of crypto currencies were also impacted by the prospect of tougher regulations on the industry. News broke last week that the SEC could ban “staking” – effectively depositing your crypto asset on an exchange to earn a yield or reward – stifling one key area of the crypto market.
The value of cryptocurrencies was also impacted by the prospect of tougher regulations on the industry.
News broke last week that the SEC could ban “staking” – effectively depositing your crypto asset on an exchange to earn a yield or reward – stifling one key area of the crypto market.
Three cryptos to watch
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Bitcoin
Bitcoin prices broke support at around $22,800 last week but found buyers around $21,400. The former becomes resistant now with a break of the latter potentially opening up a drop towards 20,000. $24,000 also appears to be a major level of resistance.
Bitcoin daily chart
Ether
Ether broke to the downside last week, slipping out of its short-term trend channel. Buyers defended technical support at the 50-day moving average and the $1500 mark. Resistance remains around $1660, while a break of $1500 would open a possible drop to the low $1400s.
Ether daily chart
Litecoin
The uptrend for Litecoin ended last week with a break of trendline support. Traders bought the dip around technical support of $90, with the key resistance level in the short term at roughly $120, which marks a recent double top in price.
Litecoin daily chart
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