As tensions between the United States and China rise, the cryptocurrency market is once again under pressure ahead of a Wednesday visit to Taiwan by U.S. House Speaker Nancy Pelosi. In addition, the $300 million Forsage pyramid scheme and the $200 million Nomad hack have put considerable pressure on the market, forcing prices to drop.
Due to a recent update to smart contracts, hackers were able to steal money from the Nomad token bridge for close to $200 million. Additionally, the Forsage pyramid scheme, which garnered more than $300 million from individual investors, was handled by 11 people who were accused by the SEC.
Both recent occurrences are exerting pressure on the cryptocurrency market. As market volatility has increased, traders have started to withdraw money from the market or take positions in short sales.
A “series of countermeasures, including military ones,” the Chinese government is preparing, according to the tabloid newspaper of the Chinese Communist Party. Due to anticipated conflicts and escalation, traders have begun to withdraw money from the market or take positions in short sales as volatility has increased.
Tensions brew among the countries
Speaker of the US House of Representatives Nancy Pelosi has meetings scheduled with leaders in South Korea, Singapore, Taiwan, Malaysia, and Japan. Singaporean authorities stressed the value of stable U.S.-China relations for regional peace and security during his visit there on Monday.
The United States and China are becoming more tense as a result of Pelosi’s visit to Taiwan. If Nancy Pelosi visits Taiwan, China’s military has been told “not to sit quietly by.” In reaction, the US and Taiwan have deployed their armed forces close to the Taiwanese border and straits.
Capital markets are declining as a result of escalating tensions; because of their correlation, this includes both the stock market and the cryptocurrency market. On the previous day, the market capitalization of cryptocurrencies fell by 3% while investor confidence declined.