2024 has seen some big swings in the cryptocurrency market, primarily Bitcoin and altcoins. Bitcoin’s 8.8% drop in the price over the past week is just one of many notable changes. The main reason is that the US Federal Reserve is expected to cut interest rates less in the coming year. A stronger dollar index and rising Treasury yields have also hurt the market, negatively impacting traditional assets like stocks.
Mr. Andre Dragosch, head of research at Bitwise in Europe, expressed concern about the situation. He believes that, despite previous interest rate cuts, financial tightening still exists, and concerns about rising consumer inflation are entirely justified. He compares current inflation patterns to those of the 1970s, a period when inflation rose unusually high. However, the limited supply of Bitcoin could open up attractive long-term investment opportunities.
Moreover, the market also faces scams related to cryptocurrency and NFTs. Two 23-year-olds, Gabriel Hay and Gavin Mayo from California, were arrested for allegedly defrauding over 22 million dollars from fake cryptocurrency projects and non-fungible tokens (NFTs). They face charges such as conspiracy to commit wire fraud and wire fraud. These two promoted digital asset projects with misleading information, aiming to scam investors and then fled after raising a substantial amount of money.
The U.S. Department of Justice has committed to combating fraud in the digital asset space, emphasizing the need to maintain transparency and honesty in this rapidly growing cryptocurrency market.
