peshkov
Bitcoin (BTC-USD) is on track to post a weekly gain of ~9%, in a week that saw the top cryptocurrency cross $30,000 after economic data showed inflation waning. Ether (ETH-USD) is set to end the week ~13% higher after the successful Shanghai software update.
Markets largely expect the Federal Reserve to halt its rate hike campaign in June, following a further 25 basis point hike in May, as wholesale inflation unexpectedly fell and retail inflation showed signs of easing.
Meanwhile, ether (ETH-USD) rose to the highest level seen since last August. The software upgrade, completed on Wednesday night, allows users to withdraw their staked ETH for the first time. Shanghai, or Shapella, marks the end of the network’s multi-year transition to a proof-of-work proof-of-stake protocol, the same one used by bitcoin (BTC-USD).
“Bitcoin and Ethereum are breaking out here,” said Edward Moya, a senior market analyst at OANDA. “Bitcoin has recaptured $30K, a pivotal level that was an entry level for many institutional investors in 2021. ETH is above $2.1K after a successful upgrade in Shanghai and Ethereum is now fully Proof of Stake.”
Bitcoin (BTC-USD), which rose to a 10-month high of $31K on Friday, traded in the range of $27.8K-$30.5K for the week. Total crypto market capitalization is now $1.28 trillion, plus 1.5% during Thursday, according to CoinMarketCap.
Galaxy Digital CEO Michael Novogratz attributed the current rally to longtime enthusiasts returning to the market after last year’s sell-off. “This rally has been built on the backs of the crypto community,” he said. “It’s not new money… It was really driven by retail.”
In regulatory news, the SEC has reopened a proposal from last year that would now require registration of all cryptocurrency exchanges and decentralized finance (DeFi) platforms. “Make no mistake: many crypto trading platforms already fall under the current definition of an exchange and therefore have a duty to comply with securities laws,” said SEC Chairman Gary Gensler.
Outstanding news
- The FTT token (FTT-USD) more than doubled in value after lawyers representing bankrupt FTX reportedly told a court that the exchange is considering relaunching in Q2.
- FTX’s European arm has received approval from a Swiss court to explore a possible sale.
- ETF issuer VanEck plans to liquidate a crypto mining ETF it launched just over a year ago, hit by losses from declining mining stocks.
bitcoin price
- Bitcoin (BTC-USD) inches 0.4% higher to $30.47K at 7.01 pm ET and ether (ETH-USD) rose 4.8% at $2.11K.
- The Digital Trend, leader of Investing Group ‘Technically Crypto’, believes that the next few weeks could be a good time for some gains in bitcoin (BTC-USD). “A rate pause is bullish for assets, and it is these expectations that are driving the current rally,” they noted. But with a recession looming, likely once the Fed starts cutting rates, BTC appears to be entering the “danger zone.”
More about crypto
Ethereum: sell the rumor, buy the Shanghai
Bitcoin Surges 81% YTD: Is The Rally Real Or Just FOMO?
Bitcoin vs. Gold: Which is the better buy?