Cryptocurrencies have been exhibiting significant volatility since the beginning of the year. The Fed’s forthcoming interest rate increases, and multi-year-high inflation are the primary reasons behind this volatility. Furthermore, the Russia-Ukraine war has also fostered volatility in cryptocurrencies. This, along with the stock market sell-offs, has led to many crypto-related stocks suffering a downtrend.
Last year was a breakout year for cryptocurrencies, which experienced significant volatility and delivered strong returns. Popular cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), steered several investors to massive profits. Due to the growing popularity and acceptability of cryptocurrencies, President Biden this week signed an executive order to examine the risks and benefits of cryptocurrencies. The order has called on Federal agencies to take a unified approach in regulating and overseeing digital assets.
