Despite a turbulent week, Bitcoin and Ethereum remain stable
Due to debates about monetary policy and the publication of the Consumer Price Index (CPI) data for May, the cryptocurrency market had a tumultuous week. The trading range for Bitcoin (BTC) varied during the week between US$24,900 and US$26,250. The price of Bitcoin initially began the week above the US$26,000 threshold, but it later fell under US$25,000, hitting its lowest level since March. The Federal Reserve's decision to keep interest rates constant had an impact on this decline. Unexpectedly, the Fed also anticipated two additional rate increases during this cycle, which was consistent with investor forecasts. Contrary to expectations, the cryptocurrency market reversed course and started selling again after a three-week hiatus. The Fed's benchmark interest rate is currently between 5% and 5.25% after a run of ten straight rate hikes. The interest levied on short-term loans by banks and other depository institutions is based on this figure, which represents the highest rate since 2007. The price of Bitcoin (BTC) has significantly increased over the past day, surpassing the US$25,500 mark and recovering from the three-month low it hit on Wednesday. This rebound might be credited, at least in part, to BlackRock's submission of an exchange-traded fund (ETF) application with a cryptocurrency backing. With a rise of more than 1%, BTC snapped a three-day losing run. The U.S. Securities and Exchange Commission brought legal charges against Binance and Coinbase at the same time as these developments. Bitcoin has shown a spectacular 53% gain since the start of the year, despite a 6% fall in performance for the month. Ethereum (ETH), the second-largest cryptocurrency, has stayed between $1,600 and $1,700, on the other hand. Similar to BTC, ETH has been on a downward trend for three days until seeing a significant surge on Friday. The performance of ETH has dropped by more than 10% for the month, but year-to-date, it has grown by 39%. The SEC's charges against Binance and Coinbase exchanges may still be having an impact on the cryptocurrency market given the modest price movement and lack of optimistic reaction to the rate hike postponement. A fascinating occurrence occurred last week when Hong Kong's much awaited cryptocurrency legislation went into force, launching a new regulatory framework for virtual assets. This month saw the implementation of the regulations that allow for retail trading, marking the beginning of Hong Kong's efforts to become a well-known centre for virtual assets.
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