Heavy losses for crypto prices

Market snapshot – Week kicks off with a wave of selling

It has been a tough start to the week for crypto assets, which have declined across the board, though there appears to be little in the way of a definite catalyst. It’s important to keep these moves in context, given the big gains made in recent months, and they are a useful reminder to all crypto participants that this is an asset class where higher volatility should be viewed as a given. Notably gold has made new record highs this morning, which may well turn the heads of many in the short term.

In the news – UK plays catch-up on regulation

The FCA’s move to speed up crypto registration is a welcome step for the space, given how the UK faces competition from across the globe, though the sector is still waiting for the full regulatory framework to appear. 

Reform appears to be making inroads into the space as well, as it criticises the Bank of England approach. This aligns with Reforms attempts to appeal to a broader swathe of the electorate, and its characterisation of the BoE as a ‘dinosaur’ will strike a chord with many younger investors. 

What we’re watching – Fed speakers pile in after rate cut

Last week’s Fed rate cut left the door open for more easing in monetary policy in the US, which should continue to provide a tailwind for crypto assets. The losses in the crypto space this morning have yet to spread to equities, which have remained calm in early trading. A parade of Fed speakers is likely to confirm the dovish bias at the US central bank, while tomorrow’s round of global PMIs will be watched for the insight they provide on the health of the global economy. It has been a while since we’ve seen such a broad-based outbreak of weakness in crypto prices, suggesting Monday’s weakness might have further to run.