The crypto asset market has suffered great ups and downs in recent days, after various events that continue to generate uncertainty and concern around the world about the future not only of the financial markets and the economy, but also of the world’s order.

As the prices of some commodities such as oil plunge along with equity markets, the direction of cryptocurrencies’ prices seems to be inconclusive. Crypto assets have had some pretty strong swings in recent days, especially in the middle of the previous week, when cryptocurrency prices shot up more than 8% in less than a day, falling by the same amount on the next day. This shows us that despite the different events regarding the adaptation, regulation and implementation of cryptocurrencies in a formal way in the economy of various countries, there is still fear and uncertainty regarding the situation of the conflict between Russia and Ukraine, in addition of the characteristics or conditions that could be established for crypto assets after regulations take place. Last Wednesday, the president of the United States, Joe Biden, signed an executive order for the regulation of cryptocurrencies, which asks the Federal Reserve to explore the possibility of creating its own digital currency. The Biden administration considers the exponential growth of cryptocurrencies as an opportunity to assess the risks and benefits of issuing fully digital assets.

Federal Reserve officials made a statement in which they mentioned that the executive order “will help position the United States to continue to play a leadership role in innovating and regulating an ecosystem of digital securities, both nationally and internationally.” internationally, in a way that protects consumers, conforms to our democratic values, and boosts America’s global competitiveness.”

This has caused endless emotions among investors, with a dominant positive sentiment, due to an evolution in the crypto market in case this regulation is carried out. It is considered that the regulation is happening no matter what, so investors expect that it will allow a healthy and optimal implementation and development of digital assets in the next few years. That is why, as previously mentioned, once the statement regarding this executive order was announced, the market soared more than 8%. But why couldn’t prices hold at those levels and why did cryptocurrencies end up plummeting? Well, it is a complex answer, but there is no doubt that the macroeconomic events that are taking place around the world, such as the famous conflict in Ukraine, have dragged the cryptocurrency market along with the stock market and some commodities. In addition, there are investors with a pessimistic position regarding future regulatory executive orders for crypto assets, and as if that were not enough, remember that the March Federal Reserve meeting that we have discussed so much in previous weeks is getting closer, in which various topics will be discussed, including monetary policy and the possibility of an interest rates rise. It will be essential to keep an eye on what happens this week at that meeting!

In other news, Ethereum is close to reaching 2 million ETH burned tokens, which converted to fiat adds up to around 5.2 billion dollars. This has been carried out in order to turn Ether into a deflationary asset in the long term, also seeking to combat the high cost of commissions generated in the network. It all started in August of last year when the London hard fork was activated on the Ethereum network. With this fork, the EIP-1559 proposal was incorporated, which proposed the Ethers burning system that is currently being carried out. Bitcoin is above $39,000, in a consolidation zone that we have seen for a few weeks now, close to important support. We can observe two critical levels that, if breached, could determine the short-term future of the crypto market. The first of these is a support near $36,500, which has been breached twice, however, the price tends to quickly return above it. On the other hand, a resistance near $40,800, which could be breached in the coming days. BTC/USDT 1D (TradingView Chart). A high correlation with Bitcoin can be seen on Ethereum, and it is currently trading above $2,580, with an important support zone near $2,400 and resistance above $2,580. ETH/USDT 1D (TradingView Chart). A vital week is approaching, one of the most important to determine the short-term behavior of the cryptocurrency market, since the meeting of the Federal Reserve could have a great impact on investor sentiment and on the markets in general. With so many critical events in the world, it is important to take into account the presence of high volatilities, which can be used to obtain benefits, but increase the risk of our investments. We will keep you informed about these events throughout the week, and without further ado, we wish you an amazing week.