Bitcoin lost more than one-fifth of its value over the weekend as investors fled riskier investments due to omicron and hiring fears.
The second most traded crypto currency, ether, also lost 10% of its value.
The streak of losses means that Bitcoin has lost approximately 30% of its value since its early November high of $69,000. The volatility comes as financial institutions seek to understand and tap the crypto currency market.
In late November the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency released a joint inter-agency statement on crypto currencies to assist supervised institutions to engage in crypto asset related activities.
In this context the interagency team analyzed the following possible activities: crypto-asset custody, facilitation of customer purchases and sales of crypto-assets, loans collateralized by crypto-assets, activities involving payments including stablecoins.
According to the statement the agencies plan to provide greater clarity on the legal permissibility and regulation of such crypto related banking activities in the course of 2022.
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