Crypto Volatility at the Start of the Week, Global Regulation a Key Focus
The crypto market experienced a sharp correction in trading on Monday. More than US$1.5 billion in leveraged long positions were liquidated in the past 24 hours, the most in months. The impact was felt most heavily by Ethereum, which fell around 9%, and Bitcoin, which fell nearly 3%, hitting a low of around US$111,998-US$112,000 before recovering slightly. Many altcoins (including Dogecoin, Solana, and XRP) fell significantly due to the domino effect of liquidations and weakening market sentiment.
The negative correlation between crypto and safe-haven instruments is starting to emerge strongly: gold has reached a record price per ounce, as investors move away from riskier assets. Monetary policy uncertainty, particularly following the Federal Reserve's interest rate cut, has fueled concerns that further easing will be cautious, dampening the initial bullish momentum in the crypto market.
On the regulatory and policy front, the US and UK formed the Transatlantic Taskforce for Markets of the Future to align the regulatory framework for digital assets and capital markets. This group will produce recommendations within 180 days, covering both short-term regulations and long-term strategies related to digital assets. This initiative is seen as an important step that could clarify the regulatory direction in both countries, although the impact on prices may be gradual.
Source: Newsmaker.id
