Crypto Market Under Downside Pressure, Risking Massive Sell-Offs

The cryptocurrency industry is under pressure yet again ahead of Wednesday’s Taiwan visit by Nancy Pelosi of the United States, escalating tensions between Chain and the US. Moreover, the $200 million Nomad exploit and the SEC charging eleven for the $300M Forsage Ponzi scheme added some downside pressure on the marketplace, triggering price plunges.

The tabloid newspaper by the China Communist Party reveals the Chinese authority is preparing several countermeasures, including army actions. Due to the expected escalations and altercations, investors have begun withdrawing their investments or short-selling amidst surging volatility.

While publishing this post, Bitcoin traded near its 200WMA at $22.867, dropping 2% within the past 24 hours. Also, Ethereum lost more than 6%, currently hovering beyond the crucial psychological zone at $1,583.

Crypto Prices Slump Amid Nancy Pelosi’s Visit to Taiwan

US House Speaker Nancy Pelosi wants to meet government execs in Taiwan, South Korea, Japan, Malaysia, and Singapore. During his Monday’s Singapore visit, Singapore officials reiterated the benefits of healthy US-China relations for security and peace.

Pelosi’s Taiwan visit triggered tensions between China and the United States, with army rhetoric emerging from the three nations. China told its military to refrain from idling whenever Pelosi arrives in Taiwan. That saw Taiwan and the US moving army close to the straits and border of Taiwan.

Capital markets have slumped following soaring tensions, with the correlation between crypto and the stock market triggering plunges for the asset classes. The sliding market sentiment saw the cryptocurrency market capitalization plummeting by 3% within the past 24 hours.

Bitcoin has declined by 2% over the past day, losing the $23K level. The leading crypto has hit the 200-weekly MA at $22.8K. Continued declines beneath this crucial mark would welcome a potential fall to $20K.

Meanwhile, Ethereum surrendered more than 6% to hover beneath the $1,500 psychological level. Moving beneath this area would catalyze massive plunges.

Forsage Ponzi Scheme and Nomad Hack Increase Crypto Pressure

The Nomad bridge lost approximately $200M after the latest ‘smart’ contract change saw hackers draining all cash from the platform. Also, the Securities Exchange & Commission charged eleven individuals for operating the Forsage Ponzi, which raised over $300M from retail traders. These events added pressure to the ‘struggling’ crypto market.

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