The cryptocurrency markets have been in turmoil this year, with the meltdown of FTX sending the price of Bitcoin and other cryptocurrencies tumbling more than 60%. Unfortunately, the carnage has spread to related stocks, with Riot Blockchain (NASDAQ:RIOT) falling 4.8% on Monday following its November Bitcoin production updates.
For the first time ever, Bitcoin (BTC 1.43%) will record its first four-month stretch of Relative Strength Index (RSI) value of less than 42. This suggests that the market is oversold and a rally could be on the horizon. However, investors may be wary of jumping into the market too soon, as the long-term implications of the meltdown remain unclear.
There are a few key factors that could influence the future of Bitcoin and other cryptocurrencies. One of the most important is the role of government regulation. Governments around the world have been increasingly vocal about the risks of trading in cryptocurrencies, and this could potentially dampen investor enthusiasm.