The volatility in the cryptocurrency market has kept us all on edge, but the appetite for regulatory clarity is seen as the major driver needed for the oldest digital currency, Bitcoin to soar past the $30k threshold. In a surprising twist, despite the volatile atmosphere, Bitcoin has shown remarkable performance, outperforming crypto hedge funds according to a report by 21e6 Capital.
Bitcoin kicked off today’s trading day in Asia at a promising $29,786, a 2% increase on the previous day, while Ethereum followed closely trading at $1,856, up 1.3%. Bybit Head of Trading Products, Vivien Fang cites a record low in bitcoin’s volatility, pointing towards a potential rebound before the year-end.
Yet, the cryptocurrency sphere is not without its unpredictability as Fang also hinted at a possible surge in volatility due to macro-related downside events that could impact the market unexpectedly. Two significant market predictors to look out for are the ETF narratives and substantial industry transformations.
These, as Fang suggests, paired with speculative trading strategies could form significant tailwinds for the crypto market. Industry experts seem to agree that should Bitcoin push past the 30K hurdle, 40K could be the next anticipated threshold.
Interestingly, even as the market waits with bated breath for the performance of Bitcoin, data from CryptoRank.io shows a historical correlation between Bitcoin’s price and funds invested in crypto startups. With a noted decline in both indicators in 2022, the real question is, what will trigger the next breakout in 2023? And what’s the possibility it won’t be a Bitcoin ETF?
As the world of cryptocurrency endlessly spins, other notable market winners this week include Stellar, XRP and Shiba Inu. Yet, the market is down overall, according to the CoinDesk Market Index, with a smaller dip compared to the recent growth.
In the meantime, the tech-world continues its quest for the Crypto killer app that provides genuine utility for its users. Amidst the speculative atmosphere of the crypto world, discerning these desirable Web3 services continues to be a priority.
Finally, Global payments giant, PayPal, is set to launch a U.S. dollar stablecoin, PayPal USD. The coin will be fully backed by dollar deposits, short-term U.S. Treasuries and similar cash equivalents. This reassuring news is closely followed by a fresh crypto guideline from the U.S. central bank, designed to oversee operations of U.S crypto banks. While it doesn’t represent a complete turn-around from previous directives, it gives a clearer expectation of what the Fed expects from these banks.
In the closing note, crypto bigwigs, Cathie Wood and Mike Novogratz, both remain bullish on Spot Bitcoin ETF approvals. They predict a four to six-month timeline for multiple fund approvals. Now, we wait to see what unfolds.
Source: Coindesk
