Following the first major negative day of the week, the world’s largest cryptocurrency by market capitalization is showing signs of recovery.
The most recent news has put an incredible amount of pressure on the digital assets market.
Firstly, the United States Department of Justice announced a major international initiative in order to implement further regulation in the space, especially against cryptocurrency exchanges.
That measure from the government is seen as an inevitable action since the FTX fallout. A good part of the American Senate and Congress blames the debacle that resulted in billions lost as a result of a lack of regulations and audits on exchanges. Clients and investors of the disgraced crypto exchange both agree and disagree on the regulation.
Secondly, the other major news that had a negative impact on the market was the recent report regarding a potential bankruptcy for the major crypto lending company, Genesis.
As a result, the market saw a slight retraction on the previous day (January 18). Bitcoin and Ethereum went down by roughly 3%, while altcoins like Solana ($SOL) and Shiba INu ($SHIB) lost 8% and 12%, respectively.
As of today, $BTC is about to go at another attempt at surpassing the $21,000 resistance zone. At this time of writing, bitcoin is up by 0.62% in 24 hours and just surpassed that resistance for the first time since yesterday’s losses, currently trading at $21,070.
Bitcoin in 2023
Despite the most recent news that has the potential to negatively affect digital assets, bitcoin’s performance in 2023 is still impressing the market.
The leading crypto in the world gained around 30% in value since the turn of the year. Even the fact that the asset is holding on to negative news without losing a good chunk of its value is a reason for celebration.
Despite the recent regulations announcement, the FED is also capable of providing reinforcing news for BTC. After implementing an year-long interest raising policies, leading the nation to reach the highest rate in decades, the Federal Reserve is already showing signs that the upcoming interest reports will be a lot more favorable for digital assets.