Crypto Week in Brief: Markets Turn Volatile Amid Ongoing Debt Ceiling Talks and Rising Inflation

The global cryptocurrency market has had a choppy week as investors grapple with various factors such as the current debt ceiling standoff and rising inflation in the UK. Bitcoin, in particular, has seen significant swings, trading between US$26,000 and US$27,500 in recent days. On Thursday, BTC fell below the US$26,000 level as bearish pressure intensified in the market. This drop led BTC to its lowest point since May 12, touching a low of US$25,810.

Over the past 24 hours, Bitcoin’s trading range has hovered around the US$26,400 level, posting a gain of over 1%. This increase can be attributed to the release of stronger than expected unemployment and productivity data in the United States. However, market sentiment remains heavily influenced by the ongoing debt ceiling negotiations, which continue to capture investors’ attention.

Bitcoin has seen a 9% decline in performance since the start of the month. Currently, BTC is facing a resistance level at US$26,471. If the price manages to close near this level, it could potentially pave the way for further upward movement towards the US$26,600 and US$27,000 levels.

Focusing on Ethereum, the second largest cryptocurrency, it recorded a minor gain of 1.8% in the past 24 hours, with the currency trading around US$1,814. Ethereum has shown positive momentum over the past four days. Although it has seen a decline of more than 4% in its performance since the beginning of the month, it has jumped by more than 50% since the beginning of the year, demonstrating its general upward trend.

In an interesting twist of events, the number of Ethereum whales (investors who hold a significant number of coins) has recently skyrocketed. According to data from IntoTheBlock, these holders now control a whopping 30.07 million Ether, marking a significant increase from the 26.56 million they held at the start of 2023. Over the past 30 days, holders long term (holding their coins for over a year) increased their stake to 4.54%. Conversely, medium-term holders (holding 1-12 months) saw their balance decrease slightly by 0.38%, and short-term holders or traders (holding less than 1 month) saw a significant drop. by 17.8%. Gemini, the cryptocurrency exchange, has made the decision to establish its new European base in the Republic of Ireland. The move comes amid increasing regulatory scrutiny of cryptocurrency companies in the United States. Gemini itself faced charges from the Securities and Exchange Commission (SEC) in January over the sale of unregistered securities associated with the now discontinued Earn program. Following the SEC’s actions, the exchange began exploring alternative jurisdictions for its operations.

In an effort to strengthen the metaverse industry, the city of Zhengzhou in China has unveiled a set of policy proposals. These initiatives aim to provide support to companies operating in the metaverse sector. As part of these measures, the municipal government plans to create a dedicated fund worth $1.42 billion. This fund will be used to support the growth and development of metaverse-related businesses in the region. The announcement demonstrates the city’s commitment to promoting innovation and positioning itself as a hub for the emerging metaverse industry.

As far as price action goes, among the top 100 cryptos by market capitalization, here are the best and worst performing cryptos from the past week:

Prices are updated according to Friday pricing.

Top 5 crypto winners of the week:

1. Render Token is up 15%
2. Kava is up 10%
3. TRON is up 8%
4. IOTA is up 6%
5. Huobi token is up 6%

Top 5 crypto losers this week:

1. GMX is down 13%
2. Sui is down 12%
3. Fantom is down 10%
4. Algorand is down 10%
5. Computer Internet is down 8%

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)


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