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Bitcoin (BTC-USD) is on track to post a weekly gain of ~9%, in a week that saw the top cryptocurrency cross $30K after economic data showed that inflation was easing. Ether (ETH-USD) is set to end the week ~13% higher after the successful Shanghai software upgrade.
Markets are largely expecting the Federal Reserve to pause its rate-hiking campaign in June, after one more 25-basis point increase in May, as wholesale inflation unexpectedly slid and retail inflation showed signs of moderating.
Meanwhile, ether (ETH-USD) climbed to the highest level seen since last August. The software update, completed Wednesday evening, enables users to withdraw their staked ETH for the first time ever. Shanghai, or Shapella, marks the end of the network’s multi-year transition to a Proof-of-Stake protocol from Proof-of-Work – the same one used by bitcoin (BTC-USD).
“Bitcoin and Ethereum are breaking out here,” said Edward Moya, senior market analyst, OANDA. ”Bitcoin has recaptured $30K, a pivotal level that was an entry level for many institutional investors in 2021. ETH is above $2.1K after a successful Shanghai upgrade and Ethereum is now fully Proof-of-Stake.”
Bitcoin (BTC-USD), which rose to a 10-month high of $31K on Friday, traded in the $27.8K-$30.5K range during the week. The total crypto market cap is now $1.28T, up 1.5% over Thursday, according to CoinMarketCap.
Galaxy Digital CEO Michael Novogratz attributed the current rally to long-standing enthusiasts moving back into the market after last year’s selloff. “This rally has been built on the backs of the crypto community,” he said. “It’s not new money… It really was retail driven.”
In regulatory news, the SEC reopened a proposal from last year that would now require the registration of all crypto exchanges and decentralized finance (DeFi) platforms. “Make no mistake: many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws,” said SEC Chair Gary Gensler.
Notable News
- FTT Token (FTT-USD) more than doubled in value after attorneys representing bankrupt FTX reportedly told a court that the exchange is considering relaunching in Q2.
- The European arm of FTX received approval from a Swiss court to explore a potential sale.
- ETF issuer VanEck plans to liquidate a crypto mining ETF it launched just over a year ago, hurt by losses from declining mining stocks.
Bitcoin Price
- Bitcoin (BTC-USD) inched 0.4% higher to $30.47K at 7.01 pm ET and ether (ETH-USD) rose 4.8% to $2.11K.
- The Digital Trend, leader of Investing Group ‘Technically Crypto’, believes the next few weeks could be a good time to take some profits in bitcoin (BTC-USD). “A rate pause is bullish for assets, and it’s these expectations that are fueling the current rally,” they noted. But with a recession looming, likely once the Fed starts cutting rates, BTC appears to be entering the “danger zone”.
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