This week, the cryptocurrency market saw a lot of activity, but two of the biggest players, Bitcoin and Ethereum, remained relatively unchanged after the US Federal Reserve raised interest rates. The rate hike was widely expected by the market, but it had little impact on the two major digital currencies.
Bitcoin, the world’s largest cryptocurrency, maintained its position just below the $50,000 mark, hovering in the mid-$49,000 range. The currency has been rising slowly over the past few weeks, but has been unable to break through the $50,000 barrier. It remains to be seen whether or not Bitcoin will be able to gain momentum and push past this resistance level in the coming days.
Meanwhile, Ethereum, the second-largest cryptocurrency by market cap, has been trading in a relatively narrow range around the $3,500 mark. Like Bitcoin, Ethereum has been on an upward trend over the past few weeks, but it has been unable to sustain any major moves upward or downward.
The Fed’s rate hike had little impact on the cryptocurrency market as a whole, as many investors and traders view cryptocurrencies as an alternative asset that is not directly affected by traditional financial markets. However, some analysts believe that the rate hike could have a longer-term impact on the market if it leads to a stronger dollar and increased borrowing costs.
In addition to the rate hike, this week saw some major news from the cryptocurrency industry, including a new partnership between PayPal and the cryptocurrency exchange Coinbase. The partnership will allow PayPal users in the US to buy, hold, and sell cryptocurrencies directly through their PayPal accounts.
This is a major development in the cryptocurrency space, as it allows more mainstream users to easily access and trade cryptocurrencies. It also validates the industry as a legitimate asset class that is gaining popularity among investors and consumers alike.
Another major news item this week was the announcement of the upcoming Ethereum upgrade, known as Ethereum 2.0. This upgrade will bring a number of improvements to the Ethereum network, including faster transaction processing times, lower fees, and increased scalability.
The upgrade is expected to be rolled out over the next few months, and it has already garnered a lot of excitement and anticipation from the Ethereum community. If successful, the upgrade could help Ethereum solidify its position as one of the top cryptocurrencies in the market.
Overall, despite the Fed rate hike and other market developments, the cryptocurrency market remains relatively stable. Bitcoin and Ethereum continue to trade within relatively narrow ranges, with neither currency experiencing any major movements over the past week.
However, as the market continues to mature and more mainstream players enter the space, it is likely that we will see increased volatility and movement in the prices of cryptocurrencies. As always, investors and traders should remain cautious and do their own research before making any investment decisions in the cryptocurrency market.
The crypto market leaders, Bitcoin and Ethereum, experienced minimal gains this week after posting small gains over the weekend. Bitcoin’s price remains at the level it was last weekend, hovering around $28,820, while Ethereum increased by 4.2%, currently changing hands at $1,885. However, TRON experienced the most growth this week, growing by 8%, trading at $0.070261 at the start of the weekend.
The crypto market’s lack of growth this week is partly attributable to the US Federal Reserve’s decision to hike interest rates by 25 basis points to fight inflation, the tenth consecutive hike since March last year. Interest rate hikes usually drive investors away from risk-on assets like stocks and crypto as the cost of borrowing increases, making money more expensive and discouraging speculative investments.
The White House’s proposal for a Digital Asset Mining Energy tax has also received heavy pushback from the crypto industry. The proposal would apply to miners of both proof-of-work and proof-of-stake cryptocurrencies and assess a tax based on their electricity costs, starting at 10% and increasing gradually until it reaches 30% in 2024. Critics argue that the proposal doesn’t consider the energy sources of the mining companies.
In other news, Robert F. Kennedy Jr., a 2024 Presidential hopeful for the Democrat party, tweeted on Tuesday that he believes there is a top-down “war on crypto” that had something to do with the recent collapses of Silicon Valley Bank, Silvergate and Signature. In contrast, Republican Florida governor Ron DeSantis criticized CBDCs, tying the concept of a CBDC to ESG’s “woke” practices by saying that CBDC advocates “will impose ESG and social credit scores onto that, and that’s going to be a huge reduction in freedom for people in this country.”
In adoption news, Sotheby’s launched an on-chain NFT marketplace for secondary NFT sales, allowing collectors to list and make offers on work from artists. However, Argentine crypto fans fear they could be witnessing the start of a crypto crackdown after the country’s central bank banned payment platforms from offering crypto trading services to their customers.
In conclusion, despite the slow growth of the crypto market leaders, TRON’s growth is an optimistic sign of resilience. The industry’s pushback against the Digital Asset Mining Energy tax indicates the need for better consideration of energy sources. The US Presidential candidates’ different views on crypto stipulate the role they may play if they ascend to power. Sotheby’s on-chain NFT marketplace is an exciting platform for artists and art collectors. Still, the Argentine crypto crackdown may be the start of a worrying trend in the crypto industry.