Crypto currencies lower amid decline in investor sentiment

Bitcoin dropped 1% to $32,845, ethereum dipped nearly 5% to $2,115 and dogecoin declined 3.5% to $0.21

Crypto currencies were lower on Friday morning amid a broader decline in investor sentiment and further crackdown in the UK.

While bitcoin dropped 1% to trade at $32,845, ethereum dipped nearly 5% to trade at $2,115 and dogecoin declined 3.5% to trade at $0.21.

Naeem Aslam, chief market analyst at Ava Trade, said investors are reducing their exposure to risky assets as uncertainty about the future outlook grows. The notorious assets are famous for being extremely volatile, and stock traders are currently shifting their focus to safer assets such as treasuries.

But he added that institutional investors are still showing an increased interest in digital currencies and will most likely take advantage of this opportunity to acquire digital assets at a discount.

Bank of America is the latest financial institution to enter the crypto market, with plans to begin cryptocurrency research coverage.

In the UK, top bank Santander told customers it will stop payments from accounts to Binance wherever possible. Binance is one of the world’s largest Bitcoin exchanges from operating in the country.

This comes after Barclays made a similar move and follows from the UK's Financial Conduct Authority's (FCA) orders to Binance to remove all advertising and financial promotions.

In one of the most significant moves by a regulator to date, the FCA said that the firm must not carry out any regulated activities in Britain without prior consent.

And the UK's Advertising Standards Office has said it will begin a major effort this month to remove misleading or irresponsible crypto ads, especially online.

Meanwhile digital currency company Circle has said it will go public via a special purpose acquisition company (SPAC) in a deal that values the company at $4.5bn. It said a central component of our mission has been helping to establish and grow USD Coin, the fastest growing dollar digital currency in the world.

Circle is the latest company from the crypto industry to turn to the public markets in the wake of bitcoin’s growth last year and earlier this year, said The Wall Street Journal.

In 2021 alone, bitcoin doubled in price to nearly $64,000, attracting a swath of new investors and capital into the crypto markets, the report added.