In recent days, the cryptocurrency market has experienced a significant downturn as Bitcoin hit the $93,000 mark, leading to a depreciation of major cryptocurrencies. Ether, Solana's SOL, Cardano's ADA, XRP, and BNB all recorded declines of up to 16%, while Dogecoin fell more than 27%. Over the past 24 hours, the total cryptocurrency market capitalization has decreased by more than 11%, marking one of the largest declines this year.
Traders believe that the negative sentiment stems from the hawkish stance of the recent FOMC meeting, which provided a less optimistic outlook on the Fed's future interest rate cuts. Jeff Mei, CEO at BTSE, advises traders to be cautious until inflation stabilizes and clear policies are established. However, he believes that in the long term, monetary and fiscal policies will increase liquidity and support the cryptocurrency market, especially Bitcoin as it is increasingly viewed as a safe-haven asset.
In the latest developments in cryptocurrency, Canadian biotech company Quantum BioPharma has invested $1 million in Bitcoin and other cryptocurrencies, leading to a 13% drop in the company's stock price due to high volatility. Meanwhile, Bitcoin mining company Hut 8 announced the purchase of $100 million in Bitcoin, bringing their holdings to over $1 billion, as part of their strategy to use Bitcoin as a reserve asset.
A new debate has emerged regarding Bitcoin's fixed supply, stemming from BlackRock's disclaimer in a video explaining that there is no guarantee that the 21 million Bitcoin supply cap will not change. In South Korea, lawmaker Kim Nam-kuk faces potential prison time for not reporting significant cryptocurrency holdings, highlighting the ongoing scrutiny in the region amid political instability.
The cryptocurrency world continues to experience ups and downs and significant volatility, but investment and interest remain on the rise, proving that the future of cryptocurrency holds much promise despite the challenges ahead.
