The cryptocurrency market over the past week has experienced both bullish and bearish price movements. The week started with the cryptocurrency market declining and the downward momentum increased after the release of the latest Consumer Price Index. However, the price has increased since yesterday, possibly due to the fact that it had dropped to a discounted level earlier.
On Wednesday the price of Bitcoin reached the lowest level since the 3rd June 2022. The price movement has not seen the same level of decline which we saw in June; the cryptocurrency market is neither seeing any necessary strong indications of bullish price action. The price of Bitcoin against the US Dollar seems to be struggling to gain momentum above $21,000 and below $19,000. The price of Bitcoin is today seeing a much lower level of volatility compared to the previous days. Currently, the price is 1.06% up, but 0.37% down since the start of the week.
The cryptocurrency market is currently under pressure from the macroeconomic picture specifically in the US as well as significant declines over the past few months. The decline in price and the generally poor performance of the market have prompted certain firms to limit short trade, and withdrawals, and some companies have even closed their doors. This has piled on further pressure as traders are cautious of not only the poor performance but also of the sustainability. Last week, the cryptocurrency broker known as Voyager Digital, which serves about 100,000 digital currency holders, filed for bankruptcy. Celsius, which also has about 100,000 traders, filed for bankruptcy earlier this week.
The macroeconomic pressure is mainly caused by the monetary policy as well as the generally low-risk appetite within the market. A low-risk appetite is known to specifically hit the cryptocurrency market hard due to its volatility levels.
Many traders are also following the court case between Ripple and SEC. Ripple has achieved important positive results in litigation with the US Securities and Exchange Commission (SEC). The court rejected the department's demand to invalidate the comments of the former head of this regulator, Mr Hinman. The court stated that the SEC does not consider Bitcoin and Ethereum as securities, and Ripple lawyers insist that this was the official position of the regulator. In other words, this means that Ripple cannot be recognized as security since it does not differ from either Bitcoin or Ethereum. If this can be proved to the court, Ripple will probably win the dispute with the American regulator.
Traders will continue to monitor the lawsuit and see if future developments change, current reports show that the court is not happy with what has been provided by SEC so far. Of course, investors will also continue to monitor the macroeconomic developments and specific the risk appetite and confidence within the market. Within regards to the technical side of the story, traders will remain focused on the range between $19,000 to $21,000 which was previously mentioned.
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