The cryptocurrency market is losing its value this Friday, Bitcoin went below $40000 for a moment, and the risk of further decline is not over. This situation also negatively influences VeChain VET/USD, Theta THETA/USD, and Stellar XLM/USD.
Tensions between Ukraine and Russia remain in the focus of investors, and a situation like this typically results in considerable volatility. The uncertainty of potential outcomes looms over investors, and they tend to seek safe places to put their money.
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Mike McGlone, an analyst from Bloomberg, said that he believes that 2022 will be a successful year for Bitcoin and other cryptocurrencies, but the cryptocurrency market didn’t show any significant progress this February (for now).
January has been a rough month for the cryptocurrency market, and according to data from TradingView, the global cryptocurrency market cap has lost approximately $500 billion last month.
International Monetary Fund (IMF) recently warned that cryptocurrencies pose new challenges to financial stability, and next week, President Joe Biden will reportedly issue an order mandating government bodies to study cryptocurrencies.
The Biden Administration seeks to establish a more synergized, holistic set of policies for digital assets while the Financial Stability Oversight Council will be tasked with assessing the effects digital assets might have on financial stability. The Biden Administration added:
Upon issuance of the directive, agencies will be expected to report their findings to the White House within 90 to 180 days. The Treasury, alongside the Securities and Exchange Commission, various banking agencies, and the Commodities Futures and Trading Commission, will be held responsible for understanding consumer and investor protection with regard to cryptocurrencies.
VeChain (VET) has weakened from $0.082 to $0.043 since the beginning of January 2022, and the current price stands at $0.053.
VET is currently down more than 50% from its record level, and according to technical analysis, this crypto remains in a bear market.
The strong support level for VET stands at $0.040, and if the price falls below it, the next price target could be around $0.030 or even below.
If the price jumps above $0.065, it would be a strong “buy” signal, and we have the open way to a resistance level that stands at $0.080.
Theta (THETA) has weakened from $5.3 to $2.2 since January 05, and the current price stands at $3.3.
If the price breaks the support level at $3, it would be a very strong “sell” signal, and the next target could be around $2.5.
Theta remains in a bear market, and traders should use “stop-loss” and “take profit” orders when opening their positions because the risk is currently high.
If the price falls below the current support that stands at $0.15, it would be a strong “sell” signal, and the next target could be around $0.13.
The risk of further declines is probably not over for this crypto, but if the price jumps above $0.25, we have the open way to $0.30.
The cryptocurrency market is losing its value this Friday, and Tensions between Ukraine and Russia remain in the focus of investors. Next week, President Joe Biden will reportedly issue an order mandating government bodies to study cryptocurrencies.
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