Bitcoin, which declined to 33 thousand levels during the week with the effect of the US Federal Reserve (Fed) meeting and returned to 38 thousand dollars towards the end of the week after this sharp decline, is far from record levels.
Bitcoin broke its historical record in November, seeing the levels of 69 thousand dollars. The leading cryptocurrency has lost nearly half of its value since then.
After the sharp fall during the week, Bitcoin, where recovery efforts were limited towards the end of the week, saw $ 38,500 during the day today. However, the leading cryptocurrency could not cross the $39,000 threshold.
While Bitcoin was at 37 thousand 900 levels, Ethereum was traded at 2 thousand 600 dollars.
The expectations that the US Federal Reserve (Fed) would send a message in the direction of tight monetary policy were effective in the decline in the crypto market, especially Bitcoin, throughout the week. The market priced in the Fed meeting and expectations of a tightening monetary policy lowered risk appetite.
FEAR IS FALLING
After the Fed meeting, some relief was observed in the market in the last days of the week.
The decrease in risk appetite has affected both the stock markets and cryptocurrencies, which are seen as the riskiest investment tool in the market. In addition, Russia's tension with western powers over Ukraine was another development that lowered risk appetite.
Meanwhile, the Bitcoin Fear and Greed Index, developed to measure two of the key emotions that trigger investors in the market and determine how much they are willing to pay for stocks, continued to rise. The index rose to 29 from 11 on January 23. In this index, a value of 0 means "Extreme Fear" and a value of 100 means "Extreme Greed".
IT WAS A NATIONAL SECURITY ISSUE IN THE USA
One of the developments that the market is following closely in 2022 is the regulations to be brought by the states to the crypto money market. The expectations for market-oriented regulation, which are closely watched by regulatory institutions, are increasing. The last move came from US President Joe Biden.
According to Bitcoin Magazine, the Biden administration will regulate digital assets as a matter of national security.
INSTITUTIONS WILL BE ASSIGNED
A source close to the White House said that with the national security statement expected to be released in the next few weeks, some departments of the government will be tasked with analyzing digital assets and creating a regulatory framework covering cryptocurrencies, stablecoins and NFTs.
"The forthcoming statement is designed to look at digital assets holistically and to develop a set of policies that add coherence to what the Biden government is trying to do in this area," the statement said. The State Department, the Treasury, the National Economic Council and the Council of Economic Advisers will be involved in this work.
Since digital assets are not limited to only one country, the necessity of cooperating with other countries on synchronization was also stated.