The cryptocurrency market was unable to maintain the gains that it posted this week after eight weeks of declining. According to CoinMarketCap information that all among the Top 10 cryptocurrency decreased in the last week by minimum 3%, except for Cardano (ADA) that is up by 6% from the week.
Market leader Bitcoin was able to weather the storm more successfully than many major coins and dipped by 3% over the past seven days. It is currently trading at $28,733 the moment of writing.
Ethereum was not as fortunate. The No. 2 cryptocurrency in terms of market capitalization decreased by 11% in the past week, and is currently trading at $1,579. This was despite the eagerly awaited Ethereum “Merge” to proof-of-stake moved one step closer towards its anticipated completion in August as the trial to merge succeeded in getting was launched in the Ropsten testnet on Wednesday.
Binance Coin (BNB) fell 6.5 percent over the course of the week The Binance Coin (BNB) fell 6.5% on the week, while Dogecoin (DOGE), Cronos (CRO), Litecoin (LTC) as well as Monero (XMR) All fell by more than 10%..
News that impacted the markets for crypto this week
What’s keeping the crypto market from freezing? The stock market continues to lose money. market, specifically in tech stocks, and crypto prices have been more closely tied to tech stocks during the last month than they were in the past. It is estimated that the S&P 500 as well as the Nasdaq both declined by about 6percent this week as well as BTC and ETH were also down with these two stocks.S&P (blue), Nasdaq (green), Bitcoin (orange) and Ethereum (purple) in the last five days. (Yahoo Finance)
On Friday on the 5th of May, it was reported that the U.S. CPI (Consumer Price Index) reading for May came out , and it was not pretty: costs rose 8.6 percent in May as compared to the month of May 2021. This is the most significant monthly CPI increase since 1981. The rate of inflation in 2022 has so far been a disaster for Bitcoin despite the long-standing campaign that Bitcoin can be used as an insurance against inflation.
If the wider U.S. economic slump isn’t enough to justify the current Crypto Winter, regulators continue to issue strong statements regarding new crypto regulations and guidelines.
This week, the New York State Department of Financial Services (DFS) was the first American regulatory body to issue a regulatory guideline for stablecoins that are dollar-backed. The guideline defines how to meet the “baseline criteria” for the backer, the redeemability, and the an auditability for stablecoins.
Stablecoins, as the DFS declares, “must be fully backed by a reserve of assets” at the close of each business day. Additionally, issuers must have “clear, conspicuous redemption policies,” that are approved prior to the issue which will give holders of stablecoins the ability to cash out the digital currency “in a timely fashion at par for the U.S. dollar.” Issuers are required to store the assets “with U.S. state or federally chartered depository institutions and/or asset custodians.”
The day before, Treasury Secretary Janet Yellen advised people to avoid adding Bitcoin and other cryptocurrency in their retirement plans. This is which Fidelity will be introducing this summer as part of their ” Digital Assets Account.” In a speech at an New York Timesevent in Washington, Yellen said: “It’s not something I would suggest to all those who are saving for retirement. For my mind, it’s a very risky investment.”
The news broke on Thursday. Bloomberg reported from an unnamed source SEC’s enforcement lawyers have been investigating what Terraform Labs’ marketing of its algorithmic stablecoin that is now closed, UST, violated federal laws protecting investors..
Yet the crypto-friendly politicians are rebuffing. Senators Cynthia Lummis and Kirsten Gillibrand have introduced legislation to strip their United States Securities and Executive Commission (SEC) of its authority over the cryptocurrency market, and creating the Commodity Futures Trading Commission (CFTC) the main regulator for the market.
The legislation called”the Responsible Financial Innovation Act, is the largest cryptocurrency legislation to be proposed up to now and includes many important measures, such as an exemption from reporting requirements for gains in crypto of less than $200 the IRS. The bill isn’t likely to be passed by Congress but it is expected to gain momentum after the midterm elections in November.
In spite of the decline in prices increasing numbers of people are optimistic about the future of crypto-based payments. A recent poll of merchants by Deloitte and PayPal has revealed that almost 83% of executives from a variety of U.S merchants expect cryptocurrency payments to be “ubiquitous” in their respective sectors in the coming five years. The survey surveyed about 2,000 top executives from sectors such as cosmetics, digital products electronic fashion, food and beverages, home and garden hospitality, leisure and transportation.