Bitcoin Holds Above $26,000 as Ether Rises: Crypto Market Update
Bitcoin and Ether, the top two cryptocurrencies, experienced positive movement in the crypto market. Bitcoin rose 1.41% in the last 24 hours, reaching $26,765, and gained 3.21% over the past week. Ether also saw gains, increasing by 0.86% to $1,734. However, it remained flatlined for the week, resulting in a weekly loss of 0.48%.
Among the top 10 cryptocurrencies, Solana emerged as the top performer, rising by 3.76% to $15.95, with a weekly gain of 4.95%. Other non-stablecoin tokens in the top 10 also experienced upward movement, except for Binance's BNB, which dipped by 0.25% to $242.87. Despite this small decline, BNB still managed a weekly gain of 5.38%.
The crypto exchange giant Binance faced regulatory challenges in Europe, which prompted the company to withdraw from the Netherlands. In the UK, Binance's subsidiary, Binance Markets Ltd, was no longer able to provide non crypto-related activities due to regulatory constraints. These events, combined with the ongoing lawsuit with US regulators and an anti-money laundering probe in France, presented significant hurdles for Binance's global expansion plans.
The outflow of digital asset investment products reached $5.1 million, marking the ninth consecutive week of outflows. However, the amount was smaller compared to the previous week's $88 million outflow. BlackRock's recent filing for a spot Bitcoin ETF suggested a firm stand on the importance of cryptocurrencies in future financial innovation in the US.
Markus Thielen, Head of Crypto Research & Strategy at Matrixport, believes that approving BlackRock's Bitcoin ETF could lead to a major migration of cryptocurrency traders to regulated entities. With over 420 million cryptocurrency holders, the process of transitioning them to regulated platforms is crucial but challenging for regulators, as crypto companies possess deep pockets to fight legal battles.
The non-fungible token (NFT) market also experienced activity, with the Forkast 500 NFT index slightly dipping by 0.17% in the past 24 hours. Ethereum and Bitcoin blockchains witnessed an increase in NFT transactions, with Ethereum rising by 6.74% to $13.16 million and Bitcoin surging by 135.38% to $3.43 million. Polygon and Cardano networks also recorded double-digit gains in NFT transactions.
Looking at the broader market, US stock futures traded lower as the Federal Reserve hinted at future interest rate hikes. Despite the positive performance of the Dow Jones Industrial Average, S&P 500, and Nasdaq indexes in the previous week, Fed Chair Jerome Powell stated that interest rates may increase by the end of the year. The Fed projects a 5.6% interest rate for 2023, indicating the likelihood of two more rate hikes within the year.
The US housing market index reached an 11-month high in June, surpassing analysts' expectations. With interest rates reaching their highest since 2006, the Federal Reserve's next meeting on rates in July is anticipated to result in a 25-basis-point rate hike.
China's central bank lowered its one-year and five-year loan prime rates to 3.55% and 4.2%, respectively, in an effort to boost the country's post-Covid recovery.
In conclusion, Bitcoin held above $26,000, Ether experienced gains, and Solana led the winners in the crypto market.