Bitcoin (BTC) and broader cryptocurrency market conditions deteriorated rapidly after a brief pause at the beginning of the month. While the markets could not recover from the shock with the collapse of the (UST) and Terra LUNA, it once again worsened with inflation problems. Friday’s US inflation figures suggested that free money could come out sooner than many expected. Calls from lawmakers for greater regulatory oversight of the cryptocurrency space added to market anxiety during the week.
Bitcoin closes 10 of the last 11 weeks with losses
Bitcoin started the week on the rise before reversing. Hopes that the market will bottom out after the first weekly gain in ten weeks has bolstered the broader market. On Monday, Bitcoin rose nearly 4.8 percent and returned to $31,700 before capitulating to broader market forces. Entering Sunday, Bitcoin fell for five consecutive days. Aside from its Sunday recovery, a 4% weekly drop would leave BTC at its lowest weekly close since December 21, 2020. Bitcoin will need to complete the week at $30,000 for a second consecutive weekly gain.
Bitcoin movements until Friday closely followed the NASDAQ 100, which closed the week down 5.60 percent. An inverse correlation with WTI crude oil prices was also evident on the week, reflecting the impact of market sentiment on inflation in the crypto market.
Bears take control of cryptocurrency market
Solana (SOL), which has lost nearly 12 percent in the week ending June 12, is posting its tenth consecutive weekly drop. Ethereum(ETH), on the other hand, will start the week with the news of a possible transition delay to a proof-of-stake protocol, which is down about 15.13 percent and adding to the selling pressure. Things weren’t much better for BNB, DOGE and XRP, which also suffered weekly losses.
Cardano (ADA) was the altcoin that fell the least with the expectation and support of Vasil Hard Fork. The total crypto market cap, which rose to $1,284 billion on Monday, fell as low as $1,105 billion on Saturday.
Crypto News of the Week Highlights
- One of the highlights of the week was the SEC’s announcement that it is investigating whether BNB is a security. Following that, Reuters clarified that Binance had “at least $2.35 billion laundering channel in illegal funds.” Binance, on the other hand, responded to the statements and denied the allegations.
- Global payment network PayPal has started to support the transfer of cryptocurrencies to wallets outside the platform. The new feature, which is stated to be the most requested feature since the company started offering crypto services on its platform, will be available only to selected US users for now.
- A bipartisan bill was introduced, backed by Republican Cynthia Lummis and Democrat Kirsten Gillibrand. According to the bill, the CFTC will be the crypto regulator.
- Citadel Securities is preparing to launch a cryptocurrency trading platform.
- The New York Department of Financial Services (NYDFS) has issued guidelines for stablecoin issuance.
- Tether announced the launch of USDT on Tezos, making it the thirteenth blockchain.
- Blockware Intelligence predicts that Bitcoin, like the internet and social media, will gain more and more adoption. According to the report, global adoption is projected to reach 10 percent by 2030.
- Ethereum developers implemented the much anticipated The Merge update on the Ropsten testnet earlier this week. However, as we have reported as Kriptokoin.com, they have announced that they have decided to postpone the difficulty bomb, which arouses suspicion in the Ethereum community.
- Deloitte survey showed that more than 75 percent of US investors plan to accept cryptocurrencies within the next 24 months.
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