- Cryptocurrency market value is declining
- Theta, VeChain, and Stellar continue to suffer
- President Biden directs the government to study cryptocurrencies
Investors are paying attention to the tensions between Ukraine and Russia, and a situation like this generally results in considerable volatility. The uncertainty of potential outcomes looms over investors, and they tend to seek safe places to put their money.
Bloomberg analyst Mike McGlone believes that 2022 will be a successful year for Bitcoin and other cryptocurrencies, yet the cryptocurrency market showed no significant progress in February.
Data from TradingView shows that the global cryptocurrency market cap decreased by approximately $500 billion in January, which was a rough month for the cryptocurrency market.
The International Monetary Fund (IMF) warned recently that cryptocurrencies may threaten financial stability, and President Biden is expected to order government agencies to study the phenomenon next week.
Despite this, the Biden Administration plans on establishing a more comprehensive set of policies for digital assets. Specifically, the Financial Stability Oversight Council will examine the potential effects of digital assets on financial stability. President Biden said:
“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.” – end of quote.
VET Controls Bears
Since the beginning of January 2022, VeChain (VET) has fallen from $0.082 to $0.043. Its current price is $0.053.
The price of VET has dropped more than 50% from its all-time high, and according to technical analysis, the coin remains in a bear market.
VET’s strong support level is $0.040, and if the price falls below it, the next target would be around $0.030 or even lower.
If the price rises above $0.065, it is a powerful “buy” signal, and we have the opportunity to move towards a resistance level at $0.080.
THETA Trades Near $3
Since January 2005, Theta’s price has fallen from $5.3 to $2.2, and it is now trading at $3.3.
The next target could be around $2.5 if the price breaks the support level at $3. Trading in theta remains risky, and traders should use “stop-loss” and “take-profit” orders when opening positions.
Stallar (XLM) Still Under Pressure
The next target could be around $0.13 if the price falls below the current support level of $0.15. This cryptocurrency is still at risk of further declines, but if the price rises above $0.25, it may head to $0.30.
Cryptocurrency prices are falling this Friday, and tensions between Ukraine and Russia are still at the top of investors’ minds. A presidential order requiring government bodies to study cryptocurrencies is expected to be issued next week.