There are a few key factors that are leading the market sentiment. First is the failure of the Biden administration to push for regulatory clarity for the crypto industry. Secondly, the Federal Reserve’s (FED) decision to reduce its balance sheet will negatively impact the equities market. 

If the Fed is not careful with this delicate balancing process, it may lead to a similar consequence to the 2013 tapering exercise that threw the financial market into disarray. This time, the US is facing other equally concerning issues such as rising living costs, geopolitical tension in Eastern Europe, and the supply chain crisis. 

The crypto market needs fresh catalysts to turn the market around. These catalysts must be impactful to spur investors’ interest. One such possibility is the launch of Bitcoin spot Exchange Traded Funds (ETFs).