The cryptocurrency market witnessed volatility throughout the week due to the release of Consumer Price Index (CPI) data for May and discussions around Monetary Policy. Bitcoin’s trading range fluctuated between US$24,900 and US$26,250, with its lowest point since March. The Fed’s decision to maintain unchanged interest rates and projected two more interest rate hikes in the current cycle influenced the drop in Bitcoin’s value. However, BTC rebounded by over 1% in the last 24 hours due to BlackRock’s submission of a crypto-backed ETF application. Louis Vuitton is also preparing for a collection of NFTs called Via Treasure Trunks.
The cryptocurrency market experienced a volatile week, driven by the release of the Consumer Price Index (CPI) data for May and discussions surrounding Monetary Policy. Throughout the week, the trading range of Bitcoin (BTC) fluctuated between the levels of US$24,900 and US$26,250. Initially, Bitcoin started the week above the US$26,000 mark, but it later dropped below US$25,000, reaching its lowest point since March.
This drop was influenced by the Federal Reserve’s decision to maintain unchanged interest rates. Surprisingly, the Fed also projected two additional interest rate hikes in the current cycle, which aligned with investor expectations. However, contrary to expectations, the crypto market changed course and resumed the sell-off that had been ongoing for the past three weeks.
Additionally, after a series of ten consecutive rate hikes, the Fed’s benchmark interest rate currently stands between 5% and 5.25%. This signifies the highest rate since 2007 and determines the interest charged on short-term loans by banks and other depository institutions.
In the last 24 hours, Bitcoin (BTC) witnessed a notable surge, surpassing the US$25,500 level and rebounding from its three-month low reached on Wednesday. This recovery could be attributed, at least in part, to the submission of a crypto-backed exchange-traded fund (ETF) application by BlackRock. BTC’s gain of over 1% halted its three-day losing streak. These developments occurred concurrently with legal actions initiated by the U.S. Securities and Exchange Commission against Binance and Coinbase. Despite a 6% decline in its performance for the month, Bitcoin has exhibited a remarkable 53% growth since the beginning of the year.
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View Details »On the other hand, Ethereum (ETH), the second largest cryptocurrency, has remained within the range of US$1,600 and US$1,700. ETH has been following a similar trajectory to BTC and experienced a notable increase on Friday, breaking a three-day losing streak. While ETH has seen a decrease of more than 10% in its performance for the month, it has achieved a 39% growth in the year-to-date.
The muted crypto price action and lack of bullish response to the rate hike pause could be the lingering effect of the SEC’s charges against Binance and Coinbase exchanges.
Last week marked an intriguing development as Hong Kong’s highly anticipated cryptocurrency regulations came into effect, initiating a new regulatory framework for virtual assets. These rules, which permit retail trading, were implemented this month, signifying the initial phase of Hong Kong’s endeavor to establish itself as a prominent hub for virtual assets.
Louis Vuitton, the renowned French luxury fashion house, is preparing to launch a fresh collection of non-fungible tokens (NFTs) called Via Treasure Trunks, which will be linked to physical items. This release will offer exclusive products and experiences exclusively to members. The collection consists of a limited number of several hundred digital trunks and will be available for registration starting June 8 for customers located in the United States, Canada, France, the United Kingdom, Germany, Japan, and Australia. Eligible customers can now begin purchasing these NFTs.
Coming to the price action, among the top 100 cryptos by market cap, here are the best and worst-performing cryptos over the past week:
The prices are updated on Friday.
Top 5 crypto gainers during the week:
1. KuCoin Token is up by 6%
2. Maker is up by 3%
3. Gemini Dollar is up by 0.45%
4. Trust Wallet Token is up by 0.16%
5. TrueUSD is up by 0.21%
Top 5 crypto losers this week:
1. EOS is down by 31%
2. ApeCoin is down by 29%
3. Flow is down by 28%
4. Polygon is down by 26%
5. Axie Infinity is down by 25%
(The author is CEO and Co-founder of Mudrex, a Global Crypto Investing Platform.)
(Disclaimer: 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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