Market
picture
According to
CoinMarketCap, the total capitalisation of the crypto market fell 7.6% over the
week to $1.06 trillion, close to lows not seen since almost mid-March. Adding
to the market’s nervousness was a sharp sell-off in altcoins in light of the
SEC’s ongoing crusade against the crypto business.
The biggest
demand in such a market is for USDT, as issuer Tether decided to print an
additional 1 billion stablecoins.
Bitcoin once
again briefly acted as a safe haven, temporarily enjoying an influx of buyers
as one of the most liquid assets in the sector. At the same time, the technical
picture remains bearish. Bitcoin closed the week below its 200-week moving
average, which last time out resulted in a 20-week downtrend. On the daily
timeframe, there is little to cheer about as the decline remains within the
bearish corridor. However, the final victory of the bears can only be seen in
the case of a fix below $25,000, from which BTCUSD bounced over the weekend.
Ethereum
lost 6.5% to $1750. Other leading altcoins from the top 10 changed from 3%
(XRP) to -28% (Solana) and 22% (BNB).
News
background
The US
authority’s crackdown on the Binance and Coinbase exchanges has hit the entire
crypto industry. Altcoins, which the SEC classifies as securities, have been
particularly hard hit.
Former SEC
official John Reed Stark believes that owners of cryptocurrency assets should
abandon their investments because the storm in the US crypto industry has only
just begun. Crypto exchanges have no reason to comply with laws and regulations
prohibiting manipulation, insider trading and other fraudulent activities. According
to a former SEC official, they operate without oversight and offer poor
customer protection and risk identification.
Binance is
prepared to spend $1 billion to fight the SEC, Bitboy Crypto’s YouTube blogger
reported, citing the company’s lawyer.
According to
Bloomberg strategist Mike McGlone, the likelihood of a negative stock market
recession in the US, as well as a gold hoarding trend coupled with Fed policy
tightening, could harm crypto investor sentiment. As a result of the pressure,
the riskiest assets could be pushed out of investment portfolios.
During a
conference call, Ethereum developers approved details of a future update to the
network, called Dencun (Cancun-Deneb), expected later this year.
Ethereum
co-founder Vitalik Buterin published a roadmap outlining key areas for the
sustainable development of the world’s second-largest cryptocurrency.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.