After a tough weekend, the stock market week did not start well, for the most part crypt-currencies have fallen in trade early Tuesday. Macroeconomic tensions with Russia remain a major concern, as does the freezing of financial accounts in Canada.
Solana (CRYPTO: SOL) fell 6.6% in the last 24 hours, Ethereum (CRYPTO: ETH) fell as much as 4.9% and Chainlink (CRYPTO: LINK) lost up 7.2%. Values turned upside down around midnight overnight and have been recovering ever since.
Consequences
Russia’s progress to parts of Ukraine continues to weigh on markets and may encourage so-called “risk-off trading”. Investors then sell risky assets for investments that are considered safer. See article: Here’s Why Cryptocurrency Prices Are Falling After Low Meta Results.
What is most worrying is that big cryptocurrency companies in Canada appear to be being chased by regulators and have a frozen cryptocurrency wallet linked to the truck protests in Ottawa. Ontario Securities Commission Tells Police that Tweets Sent by Jesse Powell and Brian Armstrong of Kraken Reported from Coinbase.
The Royal Canadian Mounted Police demanded the freezing of cryptocurrency accounts linked to the protests, which the companies are said to have done. But it also goes against the decentralized nature of cryptocurrency, which is a huge selling point for the industry.
As cryptocurrencies become mainstream, businesses need to learn how to deal with regulations. The current Canadian state of emergency illustrates how difficult it can be to deal with the traditional regulations.
What’s next?
The value of cryptocurrencies has also fallen to the market in the last few months. What needs to be a long – term concern is that there may be a continuing downturn in the market as interest rates rise and the Federal Reserve ends a quantitative easing. You may be interested here: Russia / Ukraine crisis: crypto price fall, XRP drops more than 10% today. If investors move to safer assets, it is not good for cryptocurrency values.
While I believe the long-term future of cryptocurrencies is about building a utility with new decentralized financial projects, tokens and non-mungible symptoms, it is also possible for values to fall rapidly as traders leave the market. They drove values up during the pandemic, and if the market turns around, we could see values fall as fast as they went up.
At the same time, regulators and governments around the world are embracing what to do with cryptocurrencies in the long run. This can lead to more uncertainty, which is one of the reasons why the market is currently selling.
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Fan of High Tech, Thomas has been interested in the world of crypto (Mining & Trading) for 5 years now. Thomas, in conjunction with his part – time activity as editor of Miroir-Mag.fr, continues to explore these themes to give you the best information.
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