The cryptocurrency market continues to show a downward trend and China’s latest decision to restrict financial institutions from providing crypto-related services is making it worse. As the markets are down, conventional stocks globally have also been bearish.
Earlier last week, Bitcoin tumbled to their lowest since February. However, Gold has appeared to be the favorite investment avenue for institutional investors. Nikolaos Panigirtzoglou, a senior analyst at JP Morgan in a research report noted that “institutional investors appear to be shifting away from bitcoin and back into traditional gold, reversing the trend of the previous two quarters.”
The industry is also in a speculative mode, as the US awaits a new monetary policy which is expected to be released next month. The new policy is expected to have increased taxes for capital gains which is being seen as a measure against crypto investors and traders.
Bitcoins which peaked this year, is now over 40% down from $64,895 to $40,396 at press time. The second leading cryptocurrency Ether is also below $3,000, sinking by over 10% this week.
The market has been down and the road to recovery seems challenging. What started with Elon Musk’s disendorsement of bitcoins continues with the Chinese government’s latest anti-crypto decisions. While the signs of a bullish market this week seems distant, experts are still hopeful of Ether touching $5000 and BTC crossing the $100k mark in the next few months.