Breaking: Crypto Market Under Pressure, Risks Massive Sell-offs, Here’s Why

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CoinGape
10w ago2022-08-02

The crypto market is again under pressure ahead of U.S. House Speaker Nancy Pelosi’s Taiwan visit on Wednesday, escalating tensions between the U.S. and China. Furthermore, the $200 million Nomad hack and SEC charging 11 for the $300 million Forsage pyramid scheme have also added some pressure on the market, causing prices to fall.

According to the Chinese Communist Party’s tabloid newspaper, the Chinese government is preparing a “series of countermeasures, including military actions.” As a result of expected altercations and escalations, traders have started pulling capital out of the market or short-selling positions amid rising volatility.

Bitcoin (BTC) price is trading near the 200-WMA at $22,866, down 2% in the last 24 hours. Ethereum (ETH) price slides 6%, currently trading above the key psychological level at $1583.

Nancy Pelosi’s Taiwan Visit Tanks Crypto Prices

U.S. House of Representatives Speaker Nancy Pelosi plans to meet government officials in Singapore, Taiwan, Malaysia, Japan, and South Korea. During his visit to Singapore on Monday, Singapore officials claimed the importance of stable U.S.-China relations for regional peace and security.

Pelosi’s visit to Taiwan is raising tensions between the U.S. and China, with the military rhetoric rising from the three countries. China warned its military “not sit idly by” if Nancy Pelosi visits Taiwan. In response, the U.S. and Taiwan have moved military near the border and straits of Taiwan.

In a tweet by Hu Xijin, editor of Global Times, a tabloid newspaper of the Chinese Communist Party, said:

“Based on what I know, in response to Pelosi’s possible visit to Taiwan, Beijing has formulated a series of countermeasures, including military actions.”

Rising tensions are causing capital markets to fall, with the stock market as well as the crypto market falling due to the correlation between them. The crypto market cap is down 3% in the last 24 hours, with the market sentiment sliding.

The Bitcoin (BTC) price is down almost 2% in the last 24 hours. The price has reached near $22.8k, the 200-WMA level. If the BTC price falls below the key level, a drop to $20k may be seen.

Whereas, Ethereum (ETH) price has fallen 6%, with the price trading above the key psychological level of $1500. The ETH price falling below the $1500 level risks massive sell-offs.

Nomad Hack and Forsage Pyramid Scheme Raise Crypto Pressure

The Nomad token bridge was hacked for nearly $200 million after a recent change to smart contracts caused hackers to drain money from the bridge.

Moreover, the SEC charged 11 people for running the Forsage pyramid scheme, which raised more than $300 million from retail investors.

Both the recent events are also adding pressure on the crypto market. Traders have started pulling capital out of the market or short-selling positions amid rising volatility.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.