The coin market has fallen prey to yet another FUD. This time around the corrections are a result of the news revolving around FED’s decisions. The prevailing fear has lashed higher performing assets such as cryptocurrencies and tech stocks. In the midst of the FUD surrounding the crypto town, amateurs have capitulated their gains to the whales.
The heated market sentiments did persuade the star crypto Bitcoin to breach levels of $42,000. Successively, the market cap of the industry has found home at $2.04 Trillion. Which is down by over 8.34 % since the previous day. An industry proponent enlightens his followers on the recent market crash. The proponent in another discussion cites 2022 to be the year of DeFi and Oracles.
Has FED Turned Bitcoin To The Bears?
Crypto proponent Michael van de Poppe in a discussion enlightens that BTC has dropped below $46000. Following the news revolving around FED planning to decrease their balance sheet, and the hike in interest rates.
The interest rates are expected to be hiked and plausibly at a faster rate. While the reduction of the balance sheet could take place with quantitative tightening.
In the interim, the dollar index has also been bouncing backup towards the resistance zones. On the other hand, the score of “15” on the fear and greed index is the lowest since the crash in summer of 2021.
Wherefore, novices have been changing hands with veterans and deep pocketed investors. The proponent is seeking for longer entries taking place.
The proponent in another discussion cites that 2021 has not been the year for oracles and DeFi, and the situation is no different until now. He believes 2022 to be the year of DeFi’s and Oracles.
As numerous DeFi protocols have been making astounding moves and have been showing strength. Which is justifiable as regulatory norms and crackdowns would continue to threaten legacy coins. Investments would flow into low-risk assets such as DeFi, Oracles and NFTs.
Collectively, the space would need significant time to rebound from the doom of the news revolving around FED. Moreover, the fast approaching Bitcoin’s death cross has its set of impacts for the assets.
2022 could possibly be the year of DeFi, Oracles, NFTs, and metaverse, as traders would allocate their funds to safeguard from the regulatory implications. That said it is advisable to bag some potential coins factoring the associated risks.
Source: https://coinpedia.org/bitcoin/is-this-the-reason-why-bitcoin-is-falling-on-the-charts-today/