The chaos in the crypto money market has brought the rumors of regulation and bans to the agenda again. When asked at a conference by the Wall Street Journal whether rising interest rates are increasing the pressure on cryptocurrencies, Bank of England vice-president Jon Cunliffe replied:

   “Yes, I think as long as the Fed rate hike process continues, outflows from risky assets like Bitcoin will continue.”

Cunliffe also stated that due to the ongoing Russia-Ukraine war, more investors are turning to assets considered safer. The Bank of England announced last month that it is dedicating more money to research the risks to cryptocurrencies. While the UK supports innovation, it also takes cautious and restrictive steps towards the sector.

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However, some data are promising for the market in the long run. Vinay Nair, CEO of investment firm Magnifi, stated that despite the recent market decline, investor interest has increased. Nair reported that investors and advisors continue to have a tendency to participate in Bitcoin-related funds despite Bitcoin trading below $30,000. After hitting an all-time high of $69,000 in November, Bitcoin slumped to $25.401, its lowest level since December 2020.

The issue of regulation of cryptocurrencies will be discussed at the G7 summit in Germany this week, Francois Villeroy de Galhau, head of the French Central Bank, said on Tuesday.

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At a conference on emerging markets held in Paris, Villeroy made the following statement, referring to the current crisis in the cryptocurrency markets:

   "The problems occurring in the market show the urgent need for regulation on a global scale. The European Union has taken concrete steps with the MICA (regulatory framework for cryptoassets) law. We will likely discuss these issues at the G7 meeting in Germany this week."

As a result, the environment created by rising interest rates, inflation and ongoing economic uncertainty will continue to have a negative impact on risky assets like Bitcoin.