Bitcoin Bounces Back , After Stablecoin Collapse , Sends Crypto Markets Into Tailspin.
On May 13, cryptocurrencies saw bitcoin fight back to rise above $30,000.
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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.
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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
