Bitcoin Bounces Back , After Stablecoin Collapse , Sends Crypto Markets Into Tailspin.
On May 13, cryptocurrencies
saw bitcoin fight back
to rise above $30,000. .
However, bitcoin is still facing a record losing streak after the collapse of TerraUSD sent shockwaves through cryptocurrency markets.
Reuters reports that high inflation
and rising interest rates have swept
crypto assets up in a broad selloff.
Bitcoin reached a 16-month low
of around $25,400 on May 12. .
The largest crytocurrency by total
market value managed to bounce back
in the Asian session to $30,500.
Reuters reports that bitcoin is likely to record
a seventh consecutive week of losses
without a big rebound over the weekend.
I don't think the worst is over.
I think there is more downside
in the coming days, Scottie Siu, Investment director of Axion
Global Asset Management, via Reuters.
I think what we need to see
is the open interest collapse
a lot more, so the speculators
are really out of it, and that's
when I think the market will stabilize, Scottie Siu, Investment director of Axion Global
Asset Management, via Reuters.
Since November, selling has just
about halved the global market
value of cryptocurrencies.
According to ratings agency Fitch,
cryptocurrencies and digital finance could face , "significant negative repercussions" , if investors lose confidence in stablecoins.
Many regulated financial entities
have increased their exposure to
cryptocurrencies, defi and other forms
of digital finance in recent months, and
some Fitch-rated issuers could be affected
if crypto market volatility becomes severe, Fitch note, via Reuters.
Many regulated financial entities
have increased their exposure to
cryptocurrencies, defi and other forms
of digital finance in recent months, and
some Fitch-rated issuers could be affected
if crypto market volatility becomes severe, Fitch note, via Reuters