The price of Bitcoin
(BTC) rose to a seven-day high above $24,000 this week. This is the highest price level of BTC since mid-June. However, BTC has found it hard to break higher, with a subsequent cooling pushing it to lows of $22,600 on Friday evening. Financial analysts have stated that the sentiment across the market is improving as the negativity heightened by recent turmoil dissipates.
A similar pattern was observed in the price of Ethereum (ETH). It is currently consolidating above the $1,500 level. The price of ETH has faced resistance near the $1,600 level. The next possible resistance is near $1,700.
The cryptocurrency market crash in June 2022 was spurred by momentary de-risking from Wall Street as several investors now feel highly pessimistic regarding the economy due to increasing inflation, a vulnerable stock market, and rising interest rates. In the last few months, the cryptocurrency market has increasingly tracked the stock market. This makes it more intertwined with global economic factors.
Martin Hiesboeck, head of blockchain and crypto research at Uphold, says investors are afraid of the crypto industry’s long-term viability after various major cryptocurrency players halted withdrawals, cut jobs, and also tried to curb losses. However, the prices of cryptocurrency are more vulnerable to factors that contribute to the difficult economic situation than the pullback in the crypto ecosystem.
The price volatility is a big reason financial experts have stated crypto investors have to be extremely cautious when allocating a part of their portfolio to cryptocurrency. A steady rise is evident in the price of Bitcoin over the years when compared to any other cryptocurrency on the market. It’s only reasonable for Bitcoin investors to be curious about how high it can ultimately go.
UK To Regulate Stablecoins As the Treasury Introduces New Financial Bill
The Chancellor of the UK Exchequer, Nadhim Zahawi, presented a new bill to the Parliament titled the ‘Financial Services and Markets Bill.’ The bill will bring forward some changes to the current status of cryptocurrency operations in the country.
Many suggestions were put forward in the new financial bill. Among the many suggestions, the few that stood out are the focus of the UK Treasury on stablecoins as well as the functioning of the regulators of the country.
The bill focuses on regulating a set of stablecoins [Tether (USDT), USD Coin (USDC), etc.] that are used for payment. The bill will also provide the Bank of England with the authority to limit the Financial Conduct Authority (FCA) in its approach to regulating payments systems through the use of digital settlement assets if any of the regulatory actions influence the business in the country or if its results in financial instability.
Tesla sold 75% of its Bitcoin Holdings as Profits Slump
Electric car manufacturer Tesla has sold 75% of its Bitcoin (BTC) holdings. The clean energy company most well-known for selling electric cars, battery products, and vehicle powertrain components has now revealed in its new financial earnings report that it sold nearly $936 million worth of Bitcoin in the second quarter of 2022.
According to Tesla’s new financial statements, the company’s Bitcoin holdings were stable for three consecutive quarters. However, following the sale, the organization now has only $218 million in digital asset exposure. This has resulted in a sharp drop from the $1.261 billion figure of March 2022. Early last year in 2021, Tesla disclosed in a filing with the United States Securities and Exchange Commission (SEC) that the organization used some of the available cash for investing $1.5 billion in Bitcoin.
In April 2021, a massive profit was recorded by Tesla as it sold 10% of its Bitcoin stake, netting $128 million on those sales. At the time, CEO Elon Musk explained that the sale proved Bitcoin’s liquidity as an alternative for holding cash on the organization’s balance sheet.
Top crypto gainers and losers this week
Top Gainers for the week (as of 18.00 hours, July 24, 2022)
Ethereum Classic (ETC): 36.82% up
ApeCoin (APE): 32.06% up
Fantom (FTM): 27.72% up
Top Losers for the week (as of 18.00 hours, July 24, 2022)
TerraClassicUSD (USTC): 14.36% down
Arweave (AR): 10.81% down
Elrond (EGLD): 6.68% down
(Source: Coinmarketcap.com. Only top 100 tokens are considered for the study)