Crypto Slump Deepens as Tightening Policies Raise Recession Fears

Tightening monetary policies by central banks are pushing up Treasury yields, strengthening the US dollar, and reducing liquidity and demand in crypto markets.

Concerns remain around potential oil supply disruptions exacerbating inflation and forcing central banks to maintain aggressive rate hikes.

Declining crypto trading volumes in 2023 reflect reduced risk appetite among investors due to regulatory uncertainty, restrictive monetary policies, and geopolitical risks.

Bitcoin speculation currently outweighs mainstream usage as a store of value, with demand primarily driven by retail fervor rather than stable institutional flows.

Regulatory approval of Bitcoin ETFs is crucial for mainstream adoption and establishing Bitcoin as an institutional safe-haven asset during volatility.