Crypto experts cite concerns for the next meeting of the US central bank as key reasons for the dramatic price drop in the crypto market. The expectation is that the Federal Reserve (Fed) will soon counter the high inflation with interest rate hikes. That would be poison for risky assets like cryptocurrencies. In addition, the continued highly critical attitude of the Russian central bank towards digital currencies is seen by investors as a stumbling block for the crypto market.
The Central Bank of Russia is currently recommending a complete ban on digital currencies. A possible ban on cryptocurrencies in Russia would therefore have consequences for the prospecting and mining of crypto assets. The threat of escalation in the conflict between Russia and Ukraine is also fueling fears of price falls. crypto expert emden expect many of the smaller investors to flee their investments in outright panic, which could cause prices to drop dramatically again.