Bitcoin prices have fallen sharply amid global stock sales.
Luke McGregor | Bloomberg | Getty Images
Bitcoin prices plummeted on Monday as investors began to mitigate risk as the global stock market fell.
in the meantime Bitcoin Are often referred to as safe haven assets, and the reality is that prices tend to fall as risk assets decline significantly. So far, Bitcoin rallies are in line with broader risk, where Bitcoin prices, like stocks, usually fall in September.
“This sale is an established pattern in which traders either monetize high-risk assets to cover margin claims or stand by until the market calms down and is more comfortable returning to high-risk positions. It’s a continuation, “said CEO Leah Wald. He told CNBC at Valkyrie Investments, Cryptocurrency Manager. “If Bitcoin had the opportunity to establish itself as a safe haven or digital gold, it’s now like that, as US companies have also suggested that the call for revenue will reveal bad consequences. I feel. “
Global stock market Sliding Investors are afraid of increased risk due to shakeouts of the Chinese real estate market Connected with the very helpful developer Evergrande.. Investors are also focusing on the Federal Reserve and whether it shows that it is ready to start removing monetary stimulus from the economy. The central bank will start a two-day meeting on Tuesday.
Earlier this month, it exceeded $ 50,000, an important psychological resistance level for traders. Cryptocurrencies are below the 50-day moving average of $ 46,514 as analysts and traders look for ups and downs and grasp medium-term trends. Investors “have to wait until tomorrow to decide whether to reduce their exposure and manage the risk of longer-term withdrawals,” Katie Stockton, managing partner of Fairlead Strategies, told CNBC. Told.
As the uncertainty about stablecoin regulation increases, cryptocurrencies will decline. reported over the weekend that the Financial Stability Oversight Commission could designate them as systemically dangerous, which could put them and their operators under strict regulation.
The President’s Working Group on Financial Markets has produced a report on Stablecoin, and the FRB will release a report this month on central bank digital currencies that may expose the risks of Stablecoin.
While Bitcoin is sliding old rivals gold, Futures rose 0.4% and were green.
Bitcoin falls by as much as 10% as risky assets fall globally, raising regulatory concerns
Source link Bitcoin falls by as much as 10% as risky assets fall globally, raising regulatory concerns