The crypto market couldn’t sustain the profits it achieved last week After declining for 8 consecutive weeks. All of the top 10 cryptocurrencies have fallen by at least 3%, with the exception of Cardano (ADA), which has risen 6% in the past week, according to CoinMarketCap data.
Market leader Bitcoin has survived the storm more than most major coins and has fallen by just 3% in the last seven days. At the time of writing, it is trading at $ 28,733.
Ethereum wasn’t so lucky. The second cryptocurrency by market capitalization has fallen 11% in a week and is currently trading at $ 1,579. That was despite the long-awaited Ethereum “Merge” for Proof of Stakes one step closer to the expected completion of August when the merge trial ran successfully on the Ropsten testnet on Wednesday.
Binance Coin (BNB) decreased by 6.5% that week, while Dogecoin (DOGE), Cronos (CRO), Litecoin (LTC), and Monero (XMR) all decreased by more than 10%.
News that moved the crypto market this week
So what keeps the crypto market on the ice? Continuing losses on the stock market, especially tech stocks-and cryptocurrency prices have been more tied to tech stocks for the past month. Both the S & P 500 and Nasdaq fell about 6% this week, and BTC and ETH fell accordingly.
On Friday, the May US Consumer Price Index readings came out and were ugly. May costs are up 8.6% compared to May 2021, the highest monthly CPI increase since 1981. Inflation in 2022 has been bad for Bitcoin so far. Despite years of marketing that Bitcoin is a hedge against inflation.
And if the broader US economic downturn isn’t enough to explain this crypto winter, regulators will continue to strongly announce the proposed crypto rules and guidelines.
This week, the New York State Department of Financial Services (DFS) became the first regulatory agency in the United States. Issue regulatory guidance For stablecoins backed by dollars. The guidance An overview of the “baseline criteria” for Stablecoin’s backing, redemption and auditability.
According to DFS, Stablecoins “must be fully backed by asset reserves” at the end of each business day. The issuer must have a pre-approved “clear and prominent redemption policy” that entitles stablecoin holders to redeem. Their digital dollars are “in the same timely manner as the US dollar.” The issuer must store the asset “at a US state or federal official depository and / or asset manager”.
On Thursday, Treasury Secretary Janet Yellen warned against including in the people Bitcoin And Fidelity, another cryptocurrency in their retirement plans, saidDigital asset account..Speak in New York Times Yellen said at an event in Washington: to me, It’s a very dangerous investment.. “
Thursday, Bloomberg Through an unnamed source, SEC executive lawyers reported investigating the marketing of UST’s Terraform Labs, a stablecoin of algorithms that is currently collapsing. Violated federal investor protection rules..
Still, crypto-friendly politicians are retreating.Senators Cynthia Lummis and Kirsten Gillibrand Propose a bill To blame the US Securities and Exchange Commission (SEC) for its authority over the crypto market, while making the US Commodity Futures Trading Commission (CFTC) the main regulator of the market.
their Proposed billThe Responsible Financial Innovation Act is the most comprehensive cryptocurrency proposed to date and introduces a number of important measures, including a clause that eliminates the obligation to report crypto profits of $ 200 or less to the IRS. I am. Currently, the bill is not expected to pass parliament, but it could gain momentum after the November midterm elections.
And, despite price slumps, more and more people believe in the future of cryptocurrency payments: new Investigation Merchant stores conducted by Deloitte and PayPal Nearly 85% of executives Various US retailers expect digital currency payments to become “ubiquitous” in their respective industries over the next five years. The survey targeted approximately 2,000 executives in areas such as cosmetics, digital products, electronics, fashion, food and beverages, home / garden, hospitality, leisure and transportation.
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