- Tram Ho
After breaking the bullish momentum on August 17, the total crypto market cap quickly dropped to $1 trillion. Other markets were also volatile, with world oil prices (WTI) falling 3.6% on August 22 and down 28% from a peak of $122/barrel on June 8.
Goldman Sachs US equity strategist David Kostin recently stated that S&P 500 rewards are trending down following a 17% rally since mid-June. Accordingly, an unexpected increase in inflation will cause The US Federal Reserve (FED) must tighten the economy more strongly, negatively impacting the valuation. In addition, prolonged shutdowns supposedly aimed at preventing the spread of COVID-19 in China, as well as asset debt problems, have prompted the People’s Bank of China (PBoC) to cut interest rates. capacity.
Analysts say that the risk-on attitude due to rising inflation has reduced investors’ expectations for growth stocks, commodities and cryptocurrencies, leading traders to seek shelter in US dollars.
As for Bitcoin (BTC), the largest cryptocurrency trades around $21,400/BTC as of 7 p.m. on Aug. 24, after wiping out gains from a month of hopeful growth a few days earlier.
According to Coinnounce analysis, the top 80 altcoins have risen and fallen the most in the past 7 days, as total crypto capitalization fell 12.6% to $1.004 billion. Bitcoin is down 12% and several mid-cap altcoins have dropped 23% or more during this time period. According to trading indices and derivatives, investors have certain worries about the correction of the global market. The fear is evident in the slight drop in stablecoin Tether (USDT).
These neutral to bearish market indicators are worrisome, as the total crypto cap is currently testing the key $1 trillion support level. If the Fed continues to tighten the economy in a tough way in September to stave off inflation, there is a high chance that the crypto market will retest the yearly lows at $800 billion.
While the market was in the red, one of the users of cryptocurrency exchange Coinbase filed a lawsuit against the company, for not being able to maintain access to customer accounts during volatile market times. .
The Australian Securities and Investments Commission (ASIC) has announced that it will focus exclusively on the digital asset space over the next few years.
Specifically, plaintiff George Kattula asserted: “The exchange does not properly use standard techniques to keep users’ accounts secure. Coinbase blocks unauthorized users from unreasonably accessing their accounts. This violates the company’s claim to provide customers with technology that aids in real-time navigation across the globe and 24/7/365 of the crypto asset market.”
Additionally, the complainant alleges Coinbase failed to promptly respond to customer complaints or protect customer assets.
A Blockchain expert commented, in the volatile digital asset market, inconsistent account access can cause financial losses. Users may lose money due to long-term account lockout, which prevents them from making any transactions.
It seems that Coinbase is in trouble after it was reported that the company was the target of an investigation by the US Securities and Exchange Commission (SEC), whose stock tumbled last month. The SEC also believes that the exchange is at fault for listing 9 tokenized securities.
With such uncertainties in such a vulnerable market, regulatory issues are still controversial in many countries, requiring a specific regulatory framework that is safe for investors. In response to this, the Australian Securities and Investments Commission (ASIC) has announced that it will focus exclusively on the digital asset space over the next few years.
Under the four-year plan laid out by the agency, ASIC intends to eliminate bad behavior in the market and create conditions for a safe environment that can change the economy for the good. The regulator also noted that new technologies are gradually changing the way people view the financial system. So Australia intends to include it in its strategic plan for the next four years.
ASIC President Joe Longo said the agency will specifically focus on crypto scams. He mentioned that the regulatory framework for the financial sector is changing daily due to the impact of many factors. Some of these include market volatility, the age of the population, and how people view the financial sector.
ASIC believes such initiatives will help free the economy from the many scams being carried out in the financial sector. In addition, the agency wants to establish a framework that will examine the activities of both the cryptocurrency platform and its users. In addition, there are plans to establish a framework to warn users about the risks of entering the crypto space.
Source : Genk