Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
U.S. regulators’ announcement of action against Bitzlato, a softening stock market and a new wave of tech layoffs resulted in an abrupt correction in the crypto market.
Given the number of black swan events and the proliferation of crypto-oriented scams in 2022, most investors expect U.S. and global regulators to eventually lay down a strong hammer on centralized exchanges and other businesses connected with the crypto sector.
Crypto market daily price action. Source: Coin360
At the time of writing, BTC price had dipped to an intraday low at $20,400, and Ether (ETH) gave back its daily gains to trade as low as $1,500.
As shown in the charts below, the revelation that Bitzlato had been shuttered and its founder arrested was a lighter blow than expected by the market, and the daily candles reflect a bit of indecision as traders decide whether to reenter the market.
BTC/USDT and ETH/USDT 4-hour chart. Source: TradingView
Additional pressure on crypto assets could also be coming from a dim outlook of the U.S. and global economy in 2023 issued by banks attending Davos and the escalating trend of Big Tech companies laying off staff.
Recent headlines from Cointelegraph and CNBC detail Microsoft, Amazon and financial technology companies laying off more than 60,000 employees in the last year; and on Jan. 18, Microsoft announced another wave of layoffs to the tune of 10,000 employees.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.