Bitcoin on track to end week with 9% higher post-inflation data, Ether set for 13% weekly gain
Peshkov
Bitcoin (BTC-USD) is on course to post a weekly gain of ~9%, in a week that saw the top cryptocurrency surpass $30,000 after economic data showed inflation was easing. Ether (ETH-USD) is about to end up ~13% on the week after successful Shanghai software upgrade.
Markets are broadly expecting the US Federal Reserve to pause its June hike campaign after another hike of 25 basis points in May as wholesale inflation eased unexpectedly and retail inflation showed signs of moderation.
Meanwhile, Ether (ETH-USD) climbed to its highest level since last August. The software update, which was completed on Wednesday evening, allows 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-Work Proof-of-Stake protocol — the same one used by Bitcoin (BTC-USD).
“Bitcoin and Ethereum are breaking out here,” said Edward Moya, senior market analyst at OANDA. “Bitcoin has recaptured $30,000, a crucial level that was 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 $31,000 on Friday, traded in a range of $27.8,000 to $30.5,000 over the week. The total crypto market cap is now $1.28 trillion, an increase 1.5% via Thursday, according to CoinMarketCap.
Galaxy Digital CEO Michael Novogratz attributed the current rally to longtime enthusiasts returning to the market after last year’s sell-off. “This rally was built on the back of the crypto community,” he said. “It’s not new money… It was really retail-driven.”
In regulatory news, the SEC has revisited a proposal from last year that would now require all crypto exchanges and decentralized finance (DeFi) platforms to register. “Make no mistake: many crypto trading platforms already fall under the current definition of an exchange and therefore have an existing obligation to comply with securities laws,” said SEC Chairman Gary Gensler.
Notable news
- FTT Token (FTT-USD) has more than doubled in value after lawyers representing bankrupt FTX reportedly told a court the exchange was considering a second-quarter restart.
- FTX’s European arm has received approval from a Swiss court to consider a potential sale.
- ETF issuer VanEck plans to liquidate a crypto mining ETF it launched just over a year ago, which was hurt by losses on declining mining stocks.
bitcoin price
- Bitcoin (BTC-USD) Customs 0.4% higher to $30.47K at 19:01 ET and Ether (ETH-USD) surged 4.8% to $2.11 000.
- The Digital Trend, head 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 is those expectations that are driving the current rally,” they noted. But with a recession looming, likely as soon as the Fed starts cutting rates, BTC appears to be entering the “danger zone.”
More on crypto
Ethereum: Sell the rumor, buy the Shanghai
Bitcoin Up 81% Year-To-Date: Is the Rally Real or Just FOMO?
Bitcoin vs Gold: Which is the Better Buy?
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