Bitcoin has fallen 2% over the past 24 hours, returning to $20,770, nearly $1,000 below Wednesday’s peak. The first cryptocurrency followed sharply lower stock indices on the hawkish rhetoric of Fed officials as signs of consumer demand and weak business activity increased.
Technical analysis suggests that the recent decline is a justified correction for the short-term overbought build-up after the year-to-date rally. A correction can only be reclassified as a new decline after BTCUSD consolidates below $19.5K.
Despite the serious challenges facing the cryptocurrency industry, Web3 development activity has increased over the past year, according to research from infrastructure firm Alchemy. The number of smart contracts deployed on the Ethereum core network in Q4 2022 increased by 453% compared to the previous quarter to 4.6 million.
According to the latest report from consulting firm Cornerstone Research, the U.S. Securities and Exchange Commission (SEC) will continue to increase pressure on the cryptocurrency market through lawsuits and more. Last year, the SEC imposed a record number of enforcement actions against the industry, filing 24 lawsuits against her in U.S. federal court and six administrative lawsuits.
Bank for International Settlements (BIS) experts suggest three main options for regulating the cryptocurrency industry. These include banning certain cryptocurrency transactions, isolating the industry from traditional finance and the real economy, and regulating cryptocurrencies like traditional markets.
The collapse of FTX is the first in a “long line” of unregulated cryptocurrency exchange collapses, said investor and TV show “Shark Tank” star Kevin O’Leary. . He said all unregulated exchanges are currently facing massive outflows of customer funds. The refusal of some accounting firms to deal with cryptocurrencies speaks for itself.