Bitcoin, the world’s most popular cryptocurrency, bounced back above $28,000 in Thursday morning trading in Asia. This was despite concerns over regulators in the U.S. filing warnings and lawsuits against cryptocurrency exchanges. The rally was broad-based, lifting most of the other top 10 non-stablecoin cryptocurrencies. While Bitcoin led the day’s gains, the XRP led the week’s winners.
According to CoinMarketCap data, Bitcoin gained 3.87% to $28,345 in the 24 hours to 9:00 a.m. Hong Kong time. This was a weekly gain of 3.61%. Ethereum gained 0.65% to reach $1,788, holding a weekly gain of 2.78%.
This sudden surge in cryptocurrencies occurred amid rising tension between cryptocurrency platforms and regulators in the U.S. Among the targeted exchanges were Beaxy.com, Kraken, Coinbase, and Binance. Beaxy.com closed on Wednesday after the Securities and Exchange Commission (SEC) charged it with violating securities laws. In contrast, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance for alleged violation of trading rules.
However, the CFTC’s lawsuit against Binance has created conflicts between regulators. The CFTC filing lists Bitcoin, Ether, and Litecoin as commodities, contradicting the SEC’s previous views. The SEC has also charged Ripple Labs with selling an unregistered security in the form of XRP.
Despite regulatory concerns, XRP gained 3.42% to reach $0.5387, recording a weekly gain of 27.64%. This was the biggest weekly gain among the top 10 non-stablecoin cryptocurrencies. Some experts speculate that the CFTC’s lawsuit might provide support for Ripple Labs in its court battle with the SEC.
In the non-fungible token (NFT) market, the Forkast 500 NFT index traded flat at 4,005.60 as of 9:30 a.m. in Hong Kong. Nearly 20% of sales were from newer collections, such as Yuga Labs’ HV-MTL and Nakamigos from HiFO Labs, according to Forkast Labs data. The Forkast 500 index is down 2.78% for the week after briefly falling below the 4,000 mark. The Forkast Labs index is a proxy measure of the global NFT market’s performance and includes 500 eligible smart contracts on any given day. It is managed by Forkast’s sister company, CryptoSlam.
On Wednesday, U.S. equities closed higher. The Dow Jones Industrial Average rose by 1.00%, the S&P 500 gained 1.42%, and the Nasdaq Composite Index moved up 1.79%. Equities rebounded as concern about weakness in the banking industry receded amid recent U.S. hearings. Investors are eagerly waiting for more economic data this week. Friday’s Personal Consumption Expenditures (PCE) index offers signals into the possible next interest rate adjustments by the Federal Reserve to curb inflation.
As of 9:00 a.m. in Hong Kong, U.S. stock futures were weak. The Dow Jones Industrial Average futures moved 0.09% lower, S&P 500 futures dipped 0.07%, and the Nasdaq Composite Index dropped 0.14%.
The cryptocurrency market has been highly volatile in recent times, and the regulatory authorities’ actions have been contributing to that volatility. Earlier this year, Bitcoin reached an all-time high of about $63,000 in mid-April. It then experienced a substantial decline in May and June, dropping below $30,000. It has since recovered, but the market remains highly sensitive to regulatory risks.
In conclusion, the cryptocurrency market continues to remain unpredictable, with its volatility likely to persist. While Bitcoin’s surge in the past few days is noteworthy, investors are largely cautious due to regulatory uncertainties. Furthermore, investors must keep a close eye on market indicators and be prepared for abrupt price changes. As the world of cryptocurrencies evolves, it is becoming increasingly clear that a more comprehensive regulatory framework is required. This will help to protect both consumers and investors and ensure that cryptocurrencies play a more significant role in the global financial ecosystem.
