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A look at the crypto week ahead of the weekend market effect

In this post:

  • The infamous crypto weekends often than not wipe weekly gains for various reasons – here is a market analysis ahead of off trading hours. 
  • SEC doubles down on taking down crypto under the disguise of regulations – how long can the crypto survive unclear market rules?
  • The SEC’s stance on the industry is frustrating projects in the USA and has so far caused significant outflows.

The crypto market is known for its volatility, especially on the weekends. This could be attributed to the fewer traders moving the prices even more. Another reason for this volatility is the closure of banks, which prevents investors from transferring funds into their accounts, causing significant outflows and dipping the prices even further.

The market has been rather eventful this week; event-based volatility is one of the major concerns market analysts have highlighted this year. Due to the liquidity crisis, the market prices are easily manipulated by the events revolving around the industry. 

Bitcoin has held its ground in the turbulent week amid the SEC’s overzealous regulation towards Binance and Coinbase, the FUD surrounding Binance, and the clean energy mining threshold news. Here are some of the highlights you need to know from the market this week as we look forward to the weekend volatility.

The SEC suits against Coinbase, Binance, and Ripple place crypto in the spotlight 

The ongoing court cases against Coinbase and Ripple have dominated the news in the past week. Investors and Market analysts are closely looking forward to what could be two pivotal rulings. The first case, where the SEC is seeking a motion for an interlocutory appeal, could cause more confusion, especially on classifications of securities while the second case against Coinbase seeking to dismiss MTD could have significant implications on digital assets in the USA. 

These rulings are anticipated anytime from Judge Failla and Torress, leaving the market apprehensive. However, the market has indicated resilience, with Coinbase experiencing a 0.07 % increase towards the end of the week.

On Thursday, the SEC also filed a motion against Binance to meet disclosure requirements, highlighting areas where the exchange has failed to provide financial information and accounting documents. Other respondents listed in the case involve BAMtrading Services, Chang Peng Zao, and BAM Management US Holdings.

Crypto investors have shown resilience even with the SEC drama. This week has seen an increase of 2.54%, with BTC’s total market cap rising by 3.03% and ETH by 1.62%, ending the industry’s losing streak unless the same is setback by an unforeseen event.

Bitcoin mining breaks the 50% clean energy threshold

Elon Musk is a huge market player in the crypto industry. His tweets are known to cause sell-offs or investments after hours. The crypto influencer previously stated that his Tesla company would continue accepting crypto as a mode of payment once it acquired the 50% clean energy threshold. 

BTC mining has faced inquiries from environmentalists such as Joe Biden, who has fueled anti-crypto mining campaigns with his zero energy emission by 2050 policy.

This week, BTC hit the waves again by hitting its 50% mark; this was huge news in the industry as it may ease the intense scrutiny from Capital Hill. At the same time, Tesla may resume their pro-crypto activities, as the company’s CEO stated. These events have seen BTC flirt even closer to $30000, seeing an increase to $26748.

The FTX saga continues 

FTX has greatly influenced market prices, especially late last year after the CEO was charged and arrested for fraud. The exchange has continued influencing prices long after its collapse; on Monday, FTX announced its plans to offload $200 million. 

As of January, the exchange’s stockpile included $685 million in SOL and $268 in BTC. This announcement followed a 2.54% drop as investors reacted to the asset sale news. The drama continues to make headlines, especially after the CEO was denied bail.

The Stoner Cats creators and the SEC collide

The SEC, once more in the over-ambitious regulation on Wednesday, cracked down on NFT creators. The Stoner Cats is now facing the SEC for offering unregistered tokens in 2021 as securities in their primary sale, raising $8 million. In what Ripple’s chief officer termed a PR stunt, the Stoner Cats LLC must refund its investors and pay a hefty fine. 

This move spooked creators likely to change their marketing strategies and shy away from royalties to avoid facing the same consequences.

Given the various events hitting the headlines in an event-driven market, volatility in the crypto market is likely to expand in the next few weeks. The SEC’s stance on the industry is frustrating projects in the USA and has so far caused significant outflows. However, given the events in the wires, the market has still indicated some semblance of stability in the past week.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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