Major cryptocurrencies dropped drastically from the Federal Reserve’s Open Market Committee meeting. The meeting showed a possible move towards more aggressive strategies to manage inflation and ending pandemic support. Federal Reserve Chairman Jerome Powell said that he doesn’t view cryptocurrencies as a “financial stability concern.” The Fed is now expecting four interest rate hikes in 2022 as it handles inflation. The result has increased bond yields which makes high risk crypto less attractive compared to risk free bonds.
Kazakhstan became the world's second largest epicenter for bitcoin mining after China clamped down on crypto activities, according to data from the Cambridge Centre for Alternative Finance. Conflict in Kazakhstan was started by rising fuel prices, which can cause threaten the cryptocurrency markets. Kazakhstan is second only to the U.S. in terms of bitcoin mining, according to the data, and rising energy costs, policy changes or unrest could distress the market.
Whether we are in a bull market or bear market, understanding the cause can alleviate some of the emotions that come with trading, and help you become a smarter investor as a whole. The crypto industry has faced a lot of up and downs over the years, which is something most of us have seen before. However, it will be unlike those as the past events focused on the trends from the public, not something from the US government. For more detailed information check out the articles sourced below.
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