As per recent observations, the star cryptocurrencies, Bitcoin (BTC) and Ether (ETH), have maintained stability without drastic fluctuations. Meanwhile, a few of the crypto performers of last week, such as Avalanche’s AVAX and Solana’s SOL, have witnessed a pullback. The common eye, this week, is focusing on U.S. inflation figures for cues about the Federal Reserve’s future trajectory.
The BTC range observed from June, fluctuating between $29,500 and $31,500, according to SEBA Bank, could potentially set the trend in the market, depending on the U.S. CPI expected this week.
The popular cryptocurrency exchange platform, Coinbase is currently under the radar of the U.S. Securities and Exchange Commission (SEC). The SEC claims that Coinbase has been operating as an unregistered broker, clearinghouse, and exchange, putting at least 13 different cryptocurrencies that are unregistered securities on its platform. This begs the question of whether the SEC sufficiently justifies its jurisdiction to sue another entity, creating ripples of concerns in the market. Interestingly, Coinbase had previously acknowledged the possibility of federal securities laws applicable to its listings.
Meanwhile, predictions indicate that by the end of this decade, nearly 15 retail central bank digital currencies (CBDCs) could potentially be in circulation all over the globe. These predictions echo a survey conducted by the Bank for International Settlements (BIS), indicating that nine central banks will “very likely” issue a CBDC for wholesale utilization in the financial market within the next six years. Currently, 93% of the 86 central banks surveyed by BIS are already exploring CBDC.
Another incident of note is the drop in Bitcoin held in Huobi-related wallets, as it has descended to under 20,000 BTC, the first time since 2017. Increasing concerns about the maintenance of on-exchange liquidity have been raised since this significant decline. Huobi’s stablecoin reserves in Tether (USDT) also appear relatively low, potentially setting a future uncertainty bar for crypto markets if Huobi were to experience further outflows.
In examining these developments, it is evident that the crypto market is a complex symphony of varied notes. On one hand, the main cryptocurrencies strive to maintain stability with slight fluctuations reflecting global economic signals. Simultaneously, the impending reach of federal securities laws over crypto platforms and the introduction of digital versions of the fiat currency could bring about a monumental shift. Caution, curiosity, and adaptability are perhaps the trifecta for a sustained association with the ever-evolving realm of cryptocurrencies.
Source: Coindesk
