Crypto Weekly Review May 22 – BTC Faces Another Weekly Loss

Following the previous week’s collapse of TerraUSD (UST) and Terra LUNA, regulatory chatter gathered momentum in the week to weigh on bitcoin (BTC) and the broader market.

The pickup in regulatory chatter didn’t take the spotlight from the increased scrutiny of stablecoins and Terraform Labs.

Do Kwon became the center of attention for a second consecutive week. It was a three-pronged attack for the CEO of Terraform Labs.

News hit the wires of a 100 billion won tax fine for tax evasion, an investor lawsuit for damages of 1.4 billion won, and South Korean prosecutors investigating Do Kwon for running a Ponzi.

January reports of South Korean prosecutors wanting to put crypto criminals away for life don’t bode well for Do Kwon.

The increased attention from lawmakers tends to test investor support for cryptos.

Bitcoin (BTC) Failed to Deliver a Broad-based Crypto Rebound

A bullish start to the week saw bitcoin (BTC) strike a Monday week high of $31,296 before hitting reverse.

The reversal saw bitcoin fall to a Wednesday week low of $28,610 before retesting resistance at $30,500.

For the week, bitcoin looks set for a 4% decline, which would mark an eighth consecutive weekly loss, its worst losing streak.

Market angst over Fed monetary policy and the economic outlook, with the renewed threat of more stringent regulatory oversight, tested support for bitcoin and the broader market.

The bearish sentiment was evident in the Bitcoin Fear & Greed Index, which fell to 8/100, its lowest level since March 2020.

While recovering to 14/100 on Sunday, the Index remained deep in the “Extreme Fear” zone.

Binance Coin Bucks the Broader Crypto Market Trend

In the week ending May 22, SOL and ADA are heading for losses of 12.5% and 9.0%, respectively, with DOGE (-7.2%), ETH (-5.4%), and XRP (-6.0%) also on the way to weekly losses.

BNB looks set to buck the trend, however, with a 2.7% gain.

The total crypto market cap fell from a start of the week $1,334 billion to a week low of $1,204 billion before partially recovering to $1,277 billion.

US Lawmakers and the G7 Look to Expedite More Stringent Regs

Without surprise, regulators remained front and center, with investors expecting a united response to the collapse of Terra LUNA and stablecoin TerraUSD.

G7: Officials resumed discussions on crypto regulations that ground to a halt in December 2020. Finance ministers called for crypto assets to fall under the same regulatory regimen as the rest of the financial system. Ministers called for tougher rules to combat money laundering and the disclosure of reserves.

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