The crypto market remains firmly in the red as macro and crypto-specific events see investors take flight for safety. Bitcoin, the world's largest cryptocurrency by market capitalization, fell a further 7% on Tuesday, taking its seven-day loss to just over 31%. Ether, the native token of the Ethereum blockchain, also the second-largest crypto asset by market cap, lost roughly 5.35% in value on Tuesday and nearly 37% in the last seven days.
Here are some of the most significant events affecting crypto prices:
- Rising interest rates: according to reports, the Federal Reserve is likely to increase interest rates this week. Riskier assets such as crypto and growth stocks have historically become more volatile in high-rate environments. Read more
- The Securities Exchange Commission (SEC) of the United States has reportedly launched an inquiry into insider trading safeguards at cryptocurrency exchanges. According to FoxNews, "a handful of crypto exchanges have received inquiries from the SEC." Read more
- Michael Saylor's Microstrategy, the software company that is also one of the largest bitcoin holders, is facing the risk of a collateral call against its bitcoin-backed loan if the cryptocurrency falls below the $21,000 market. Read more