Good morning, crypto enthusiasts! As blockchain congestion eases, Bitcoin’s price recovers and inflation concerns persist. eToro‘s Callie Cox highlighted inflation as a key concern among crypto traders in a recent interview with CoinDesk TV.
Bitcoin is currently trading at $27,741, up 0.3%, with ether at $1,853, up 0.2%, according to CoinDesk market data. On-chain data indicates the number of unconfirmed transactions dipped to below 400,000 from nearly 500,000 over the weekend, while fees for sending transactions dropped to just over $5 from over $20 at the crisis’s peak. As congestion clears and these fees drop, the first signs of a return to price growth have appeared.
Inflation concerns are a focal point for the crypto market, according to Cox, who explained that the Fed is trying to balance the desire for reduced inflation while maintaining job security. However, this balancing act is not without its challenges. She also mentioned that Bitcoin has outperformed the S&P 500 on most CPI and Fed days, positioning the cryptocurrency as a defensive asset.
Aside from Bitcoin, Cox is keeping an eye on Ethereum, acknowledging its economic value and the variety of projects being developed on its blockchain. She views ether as a riskier investment but believes investors are beginning to recognize its worth.
In other news, the theme of extraterritoriality resurfaces as a central topic in a recent crypto court case, leaving the industry wondering if some answers will finally be provided on the extent of U.S. authority. Former FTX CEO, Sam Bankman-Fried, has begun his defense in this case, which scrutinizes the application of the Commodities Exchange Act (CEA) when it comes to commodities fraud charges.
This case is reminiscent of previous cases, such as BitMEX, which faced charges under U.S. anti-money laundering laws despite not serving U.S. customers nor operating bank accounts with U.S. institutions. The prospect of a CFTC’s international mandate being challenged could have significant implications for both offshore exchanges and participants with limited ties to the United States.
Bankman-Fried’s case may potentially shed light on the extraterritorial tendencies of U.S. regulators in court, providing the industry with more clarity regarding their authority.
In other market news, crypto exchange Bittrex filed for bankruptcy in Delaware while Bitcoin hovered below $28,000. Transaction fees on the Bitcoin blockchain have hit a two-year high due to the rising popularity of BRC-20 tokens, causing Litecoin transactions to reach record highs. Meanwhile, Coinbase is working to fix wallet support for Ethereum staking withdrawals stuck in limbo, and DCG seeks to refinance outstanding Genesis obligations and raise growth capital.
As we move forward, it will be interesting to see how these developments impact the crypto market, its investors, and its regulatory landscape.
Source: Coindesk
