Crypto Week Brief: Markets Volatile Amid ongoing Debt Ceiling Debates and Rising Inflation

The global crypto market has experienced a tumultuous week, as investors grapple with various factors such as debt deadlock ceiling and rising inflation in the UK. Bitcoin in particular has seen significant fluctuations, trading between $26,000 and $27,500 in recent days. On Thursday, BTC dipped below $26,000 due to increased bearish pressure in the market. This drop caused BTC to hit its lowest level since May 12, bottoming at $25,810.

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

Bitcoin has seen a 9% drop in its monthly performance. Currently, BTC faces resistance at $26,471 USD. If the price closes near this level, it is likely to pave the way for the next uptrend towards the $26,600 and $27,000 levels.

Shifting focus to Ethereum, the second-largest cryptocurrency, it has recorded a slight gain of 1.8% over the past 24 hours, with the currency trading around $1,814. Ethereum has shown positive momentum over the past four days. While it has experienced a drop of more than 4% in month-to-date performance, it is up more than 50% year-to-date, indicating its overall uptrend.

In an interesting development, the number of Ethereum whales (investors holding large amounts of money) has increased sharply in recent times. 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 beginning of 2023. Over the past 30 days, holders Long-term holdings (holding their money for more than a year) increased their holdings to 4.54%. In contrast, medium-term holders (holding for 1-12 months) their balances decreased slightly by 0.38% and short-term holders or traders (holding for less than a month) saw a significant decrease 17 ,8%. Gemini, the cryptocurrency exchange, has made the decision to establish its new European facility in the Republic of Ireland. The move comes amid increasing regulatory scrutiny of crypto companies in the United States. Gemini itself faces charges of Securities and Exchange Commission (SEC) in January, in connection with the sale of unregistered securities related to the now defunct Earn Money program. Due to the actions of the SEC, the exchange began to explore alternative jurisdictions for its operations.

In an effort to promote the metaverse industry, the city of Zhengzhou in China has published a series of policy proposals. These initiatives are intended to provide support to companies operating in the metaverse sector. As part of these measures, the city government plans to establish a dedicated fund with a value of $1.42 billion. This fund will be used to promote the growth and development of metaverse related businesses in the region. The announcement demonstrates the city’s commitment to fostering innovation and locate itself as a hub for the emerging metaverse industry.

Coming to price action, among the top 100 cryptocurrencies by market cap, here are the best and worst performing cryptocurrencies over the past week:

Prices are updated according to Friday’s prices.

Top 5 bullish cryptocurrencies of the week:

1. Render token increased by 15%
2. Kava increased by 10%
3. TRON 8% increase
4. IOTA up 6%
5. Huobi token 6% increase

Top 5 losing cryptocurrencies this week:

first. GMX 13% off
2. Sui 12% off
3. Fantom 10% off
4. Algorand 10% off
5. Internet computers down 8%

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


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