There has been a significant decline in the price of crypto since Jerome Powell, the chairman of the Federal Reserve, released the reserve’s intention to raise the interest on crypto transactions on the 21st of September, 2022, during an economic conference.
Just as expected, the UN (United Nations) has swung into action as it involves the central bank of the United States and other significant financial moderators in the West to urge the Federal Reserve of the United States to stop the interest raise on crypto trading.
The Federal Reserve and many other central banks around the globe aimed to control the extreme inflation that hit the world by increasing the interest in crypto trading. However, the UNCTAD ( United Nations Conference on Trade and Development) has tried the caution of the federal reserve as they warn that it might lead to a global outbreak of economic issues.
Is The Future Of Cryptocurrency Secured
On the 3rd of October, 2022, the United Nations Conference on Trade and Development (UNCTAD) released its report on development and trade. The report predicts that strict financial regulations might trigger a worldwide economic crisis. It is also mentioned in the statement that developing countries are the most likely to get the most affected.
The marketplace expressed the insubordination over actions taken by the federal reserve’s chairman, Jerome Powell, to counter the rise in inflation rate by increasing crypto trading. The Price of bitcoin and the more significant cryptocurrency marketplace followed, which has been the case for the past few months as the values of BTC and Ethereum have been more closely linked to the stock market.
Who Is Most Affected By The Regulation Of The Federal Reserve
During a press conference, the general secretary of the United Nations Conference on Trade and Development spoke about the interest hike in Geneva. She expressed that the regulations put in place do not favor many people in the world and, most significantly, people in developing nations.
Also, the market enthusiasts at a prominent crypto exchange firm, Bitfinex, have expressed their disapproval of the move. In an email statement released by the company, they mentioned that the crypto marketplace, like many other risk assets, is particularly receptive to the remarks of the federal reserve.
Would A Recession Favor The Cryptocurrency Marketplace
In the meantime, forecasts about how bitcoin price might fare in a downturn remain all around the place. Although it is generally agreed upon that the worth of cryptocurrencies may fall in the case of a stock market crisis, a different opinion is getting wide acceptance.
Stan Druckenmiller, an investor in America, thinks a recession will favor the crypto industry and predicted we might witness one in 2023. He also mentioned that not trusting the federal authority and other central banks might just be the news the cryptocurrency marketplace has been waiting for. This is because of the decentralization of BTC, and market analysts think it may deviate from the team.
In the meeting to be held on the 4th of November, 2022, the Federal Reserve plans will determine if the interest will experience a further rise.