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Bitcoin (BTC-USD) was on track to end the week on Friday 13.8% higherin stark contrast to broader equity markets, which have been weighed down by worries about the future of US Federal Reserve rate hikes.
The weekly rally staged The world’s largest cryptocurrency by market cap surged above $25,000 on Thursday, hitting a multi-month high. Part of the rally is due to what is known as a “short squeeze,” which Coinglass says is due to more short liquidations than normal Data On Wednesday.
In a rare momentum, cryptocurrency price gains this week have moved away from price action in broader US stocks. Crypto traders seemed to have a big appetite for risk and seemed to shake off concerns about more Fed rate hikes after CPI and PPI reports came out hotter than expected.
“Bitcoin is in retreat at the end of the week, apparently not immune to the sharp shift in risk appetite in the markets. That comes after an immense rally earlier this week that saw it hit an eight-month high on Thursday,” said OANDA analyst Craig Erlam.
“Regardless, bitcoin bulls will no doubt be excited by recent price developments and may be more optimistic than they have been since 2021,” Erlam added.
Some of the shine was taken from Friday’s rally as cryptocurrencies were weighed down by headlines surrounding Binance (BNB-USD) (BUSD-USD), which was reportedly considering cutting its ties with certain U.S. counterparties.
“Many crypto traders are paying close attention to the report that Binance may end ties with US companies as regulatory pressure mounts,” said OANDA analyst Edward Moya.
“Binance is the largest exchange in the world and if it ditches key US ties it will be a major setback for the cryptoverse,” Moya added.
The news about Binance came a day after The Wall Street Journal reported that the exchange expects to pay fines to settle U.S. regulators and law enforcement investigations into its business.
Looking at the bigger picture, Bitcoin’s (BTC-USD) weekly surge has boosted the global crypto market cap, which currently stands at $1.12 trillion. increased by 3.3% via Thursday, according to CoinMarketCap.
SEC printing stops
The weekly rally in cryptocurrencies came despite ongoing regulatory action from the U.S. Securities and Exchange Commission (SEC). Some of his promotions this week include:
- On Friday, the SEC announced that it had filed charges against NBA Hall of Famer Paul Pierce for making misleading statements about tokens sold by EthereumMax.
- On Thursday, the SEC indicted Terraform Labs PTE and Do Hyeong Kwon on charges of committing a multi-billion dollar cryptocurrency scam.
- On Monday, Bloomberg reported that the SEC was preparing a draft proposal that could allow hedge funds, private equity firms, and pension funds to partner with cryptocurrency-related companies.
- Also on Monday, the Wall Street Journal reported that the SEC might file charges against stablecoin issuer Paxos Trust for violating investor protection laws. Paxos was also ordered by the New York Treasury Department to end their relationship and stop issuing new dollar-pegged BUSD (BUSD-USD) tokens.
- This week’s SEC action follows the commission’s crackdown on crypto exchange Kraken last week.
Crypto law of other countries
- The Bank of Russia will launch a pilot program for the country’s central bank digital currency in early April, according to a report on Friday. Meanwhile, the Bank of Japan announced it would launch a pilot program to test its digital yen in April.
- CoinDesk reported on Thursday that cryptocurrency exchanges operating in Canada will face increased regulatory scrutiny.
- The capital of the United Arab Emirates, Abu Dhabi, said on Wednesday that its technology ecosystem, dubbed Hub71 Digital Assets, has raised more than $2 billion in capital to support Web3 startups and blockchain technologies.
- Britain’s financial regulator said on Tuesday it was taking enforcement action against unregistered cryptocurrency ATM operators.
Other notable news
- Exchange-traded funds related to Bitcoin (BTC-USD) and blockchain in general have skyrocketed in 2023, with some names up near or over 100%.
- Katie Stockton, founder and managing partner of independent research provider Fairlead Strategies, told CNBC that stocks and cryptocurrencies are likely to see a decline amid the “greedy” sentiment.
bitcoin price
- Bitcoin (BTC-USD) was increased by 3.5% was at $24.63k by 1841 ET and Ether (ETH-USD). 3.2% higher to ~$1.70 000.
- SA staffer Kevin George warned Monday that while investors cheered January’s Bitcoin (BTC-USD) rally, the rally was technical and nothing fundamental had changed about the world’s largest cryptocurrency.
Here’s how some crypto-related stocks performed on Friday: Coinbase (COIN) -0.6%Marathon Digital (MARA) +6.8%MicroStrategy (MSTR) +3.5%Riot Platforms (RIOT) +3.6%Bakkt Holdings (BKKT) +0.6%Hut 8 Mining (HUT) +1.5%.
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