When Bank of England Deputy Governor Jon Cunliffe was asked at a conference hosted by the Wall Street Journal on Tuesday, May 17 if rising interest rates would increase the amount of pressure placed on cryptocurrencies, he responded: Cunliffe went on to say that the conflict in Ukraine had the potential to lead more people to flee to assets that were considered to be safer. Notably, the Bank of England wanted a 9% fee increase from City of London firms to investigate crypto risks just last month.
Crypto companies seeing more interest from investors
In comparison, Vinay Nair, the CEO of the investment search engine Magnifi, recently indicated that the company is seeing an uptick in interest from investors who are looking for possibilities in the cryptocurrency markets despite the recent drop. Nair observed that investors and advisers are seeking for opportunities to participate in Bitcoin-related funds even if the asset is having difficulty maintaining its position above the $30,000 mark. After reaching an all-time high of $69,000 in November, the value of Bitcoin, the most popular cryptocurrency in the world, reached a low point of $25,401 last week, its lowest point since December 2020.
Global regulation needed for crypto
Meanwhile, Francois Villeroy de Galhau, the director of the French central bank, said on Tuesday that the topic of the regulation of crypto-assets is expected to be raised during a meeting of the Group of Seven finance chiefs taking place this week in Germany. At a conference on emerging markets that was held in Paris, Villeroy made the following statement in reference to recent volatility in crypto-asset markets: He added: All in all, it would seem that the entire market correction is a subset of the larger retreat from risky assets that has been caused by increasing interest rates, inflation, and ongoing economic uncertainty. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
