The cryptocurrency market is once again under pressure as tensions between the United States and China rise ahead of Wednesday’s visit to Taiwan of House Speaker Nancy Pelosi. As a result of the $300 million Forsage pyramid scheme as well as the $200 million Nomad hack, the market has been pressured, resulting in price declines.
The Nomad token bridge was hacked for close to $200 million due to an update to smart contracts. A pyramid scheme called Forsage, which generated over $300 million in investment, was allegedly handled by 11 people accused by the Securities and Exchange Commission.
The cryptocurrency market is under pressure due to both recent events. Traders have started taking positions in short sales in response to increasing market volatility.
According to a Chinese Communist Party tabloid newspaper, the Chinese government is preparing “a series of countermeasures, including military ones.” Since volatility has increased as a result of anticipated conflicts and escalation, traders have begun withdrawing funds from the market or taking short positions.
Tensions brew among the countries
Among the countries where Nancy Pelosi will meet are South Korea, Singapore, Taiwan, Malaysia, and Japan. During his visit to Singapore on Monday, Singaporean authorities emphasized the importance of stable U.S.-China relations for regional peace and security.
Pelosi’s visit to Taiwan has heightened tensions between the United States and China. Chinese military officials have been warned not to sit quietly by if Nancy Pelosi visits Taiwan. As a response, the United States and Taiwan have deployed their armed forces close to Taiwan’s border.
Stock markets and cryptocurrency markets are both declining because of escalating tensions, which are correlated. Investor confidence declined on the previous day as the market capitalization of cryptocurrencies declined by 3%.
Via this site.
