The fateful 2022 may be coming to a close, but the struggles for the crypto market appear to be far from over. Bitcoin price underwent a severe plunge yesterday, taking it down once again beneath $16,500. These gradual slips show no signs of recovery and appear to be an indication of a wider market fall in overall confidence. According to analysts, this negative sentiment stems from uncertainty surrounding the Federal Reserves’ future course of action, amid macroeconomic uncertainty.
Highlights of the week
- Microstrategy Inc. is one player in the crypto market which is seeing the present downturn as an opportunity to buy the dip. This week, the NASDAQ-listed company went on to purchase over 2500 Bitcoins, pushing its overall total up to 132,500. The company’s founder continues to emphasize that BTC’s rise is inevitable, and it continues to prove itself as an institution-grade digital asset.
- The global crypto exchange, Kraken, recently revealed plans to shut down its operations in Japan, citing a weak crypto market in the country. In a press release, the company stated that the present market dynamics do not offer a major opportunity that would justify resource allocation to Japan.
- The Argentine senate has been discussing a recent bill that aims to regulate and restrict the manner in which crypto-related advertisements are carried out in the country. The move comes following concerns that information of such a nature normally does not spell out dangers that investors should be aware of, and can also spur fraudulent activity.
- According to a recent report, private banks in Venezuela have suspended over 75 accounts, allegedly for dealing in cryptocurrency transactions of various natures. This oversight is expected to see increased vigilance in 2023, given the central bank’s dismissive approach toward digital assets.
- The Securities and Exchange Commission in the Philippines has sent out an official warning to investors, advising against dealing with unregistered cryptocurrency exchanges. The regulator made clear that those affected by the FTX fiasco faced no real route toward the recovery of their capital, urging to deal with regulated entities instead.
Crypto fear & greed index
The Crypto fear & greed index continues lying within its immobile state, barely moving away from the figure of 28 in the low fear zone. According to the index, market sentiment has remained consistently fearful for at least all of December. Not even the Christmas time cheer could lift the spirits of the market, as many expected a bullish ‘Santa Claus rally’.
As macroeconomic uncertainty continues to prevail over global economies, crypto market analysts point to a lack of clear direction, on the basis of which a rally can take place. Inflation in Europe, and a possibly aggressive interest rate hike further add to the negative views around the wider crypto markets.