The European Central bank raised interest rates by 50 basis points which mean 0.50%, effective from February 8th as per confirmed in the ECB press release earlier this week.
This week Bitcoin closed in red loosing 7% of its value after three weeks of consecutive gains. The week started off with bearish trend with SEC press release hampering Bitcoin pricing.
In this article, I will explain the Crypto part of the “Press Release. ” and its effects on the Bitcoin and Crypto market.
- European Central Bank Press Release
- SEC United States Press Release
- European Central Bank Increased Interest Rates
European central bank (ECB) President Christine Lagarde, reiterated in a press conference just after the press release that the (ECB) Governing body will continue to raise interest at a similar frequency in March 2023. “We will do what is necessary to bring inflation down”. Christine Lagarde.
European central bank increased interest for the first time in 11 years. ECB raises interest rates to provide liquidity to the banks, as a general policy ECB adjusts interest rates every six weeks.
Surprisingly, ECB Raised Interest rates 4 times in a year in 2022.
In a time of living cost crises, energy crises, the Russia-Ukraine war, and a massive supply chain disruption after the pandemic across the world, the aggressive inflation numbers had become a nightmare for both the public and regulators. (ECB) The European Central Bank raised interest rates as a part of their monetary policy to control inflation with no sign of slowing down until they hit the desired target.
The Crypto Market turned sideways after marking a high of $24200 as of Feb-02-2023. The eyes are on the coming weekly closing. Closing another bearish week could tremble many investors’ confidence that was barely restored in January of 2023 after months.
SEC Press Release
The examination division of (SEC) The Security and Exchange Commission of the US updated the public about their priorities for 2023,
“The SEC Division of Examination will protect users in the time of growing markets, evolving technologies, and new forms of risk,” said SEC Chair Gary Gensler.
“The division plan to keep eye on Financial Brokers, Investment Advisors who are using new financial technologies, the examination division will examine if “the middleman” is using the right standards or not,” said the Director of the Division of Examination.
(SEC) The Security and Exchange Commission of the United States has published a second Crypto-related Press Release in a week. “SEC Fine Kraken Exchange for $30 million for breaching security law,” Said Gary Gensler.
Kraken Exchange to pay a whopping amount of $30 million for offering and selling staking services to the general public in the united states.
“Whether staking, lending, or any other means, the service provider must protect according to the security law,” Said Gary Gensler.
Conclusion
These press releases along with the factors discussed in my last article added more fuel to the fire causing the market crash. (ECB) The European Central Banks are now next to the SEC in raising aggressive Interest Rates.
Institutional investors and even retail investors look for a stable market to trade in. Lawmakers hit on Crypto Exchanges, and Crypto Projects impact badly on the Market. Investors fear the rigors of law enforcement agencies.
The impact of this would not have been so much in the Bull Market, but in the Bear Market traders have no idea what spark will turn into the fire.
Image from: Istock and ECB site.
