Urgent Will the 2018 Black Scenario for Cryptocurrency Repeat?

Urgent: Recession hits digital currencies, and Bitcoin is heading for the black 2018 scenarios.

- Recession continues to hit the cryptocurrency market as negative sentiment builds in the crypto market as traders oscillate between fear and panic, amid rising US regulators' rhetoric against cryptocurrencies that amounts to a ban.
severe storm

Cryptocurrencies have seen a severe storm in 2022 after hitting record highs late last year, affected by everything from Federal Reserve policy tightening to the collapse of the Terra /Luna ecosystem and the Three Arrows Capital and FTX hedge funds.

Cryptocurrencies have been closely correlated with US stocks for a few years now, and have been the reason for the crypto market's decline so far," said Sean Farrell, digital asset strategist at Fundstrat, in a note.

Traders may also need to look for a temporary breather, Bitfinex analysts said in a report, as volumes drop during the holiday season.

“As we approach the end of the year, many companies and traders are taking a break, but the slowdown in trading activity brings with it higher volatility risks, due to lower trading volume and liquidity,” Bitfinex analysts added in a report.

“This is already evident on the lower timeframes, even if the price action on the higher timeframe appears to be between $16,000 and $18,000,” Bitfinex analysts said.

2018 scenario

In late 2017 and early 2018, the price of Bitcoin, as well as other cryptocurrencies, experienced a significant decline from its all-time high. This decline was seen as a correction from the previous bull run and many experts predicted a bear market in cryptocurrency prices. During 2018, Bitcoin and other cryptocurrencies saw a decline in value, this decline was seen by many experts as a bear market in cryptocurrency prices. The decline was largely due to a combination of factors, including regulatory crackdowns, hacking scandals, and general market uncertainty. Despite this decline, the cryptocurrency market has remained active and continues to evolve, with the growth of institutional investors and new developments in technology such as the launch of Bitcoin futures trading on major exchanges. Some experts believe that the market will recover in the long-term, while others remain more cautious. It's important to note that the cryptocurrency market is highly volatile and unpredictable, therefore any prediction of its future direction should be taken with caution.

Possible ban

US Democratic Senator Sherrod Brown, Chairman of the Senate Banking Committee, raised the possibility of banning cryptocurrencies from the US financial market.

Brown said in statements - reported by the American newspaper "The Hill" on its website - that US federal agencies need to address the digital currency market and "maybe" ban it after the major collapse of the American "FTX" company specializing in the digital currency market last month.

Brown added that the US Treasury and all relevant agencies need to get together and evaluate any possible action related to the cryptocurrency market.