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The cryptocurrency sector has recently shown clear signs of recovery amid the US banking crisis. Against this background, the capitalization of the digital assets segment has consolidated above the $1 trillion mark. But, according to some experts, there are many challenges ahead for the cryptocurrency sector, as the era of easy money is likely to come to an end.
The specialists note that the key reason for the recent collapse of Silicon Valley Bank was the active tightening of monetary policy by the Fed. It is possible that a further increase in the refinancing rate will bring additional problems to the global market.
Over the past year, the digital assets segment has experienced a massive outflow of capital, which was largely provoked by the actions of the Fed. CoinGape specialists reported that regions such as the US, EU and Australia have collectively raised their refinancing rates by 3,300 basis points. However, the Fed is forced to inject liquidity into the market due to the banking crisis in the US. This gives investors some confidence that the Fed will be forced to slow down a bit in monetary policy.
Over the previous month, the flagship crypto asset gained more than 23% in price. At the moment, the coin is firmly held above the key mark of $28,000. Experts emphasized that buyers are in control of the situation, but it cannot be ruled out that the bears can seize the initiative at any moment.
Earlier, the Crypto.ru editors reported: representatives of US law enforcement agencies that several representatives of Three Arrows Capital should appear in court in the coming weeks. A similar order was issued by the Federal Bankruptcy Court. Entrepreneurs were summoned to testify on financial statements.
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