Interface News Reporter | Sima LinweiOn June 22nd, market data showed that the price of Bitcoin, the world's largest cryptocurrency, broke through a key resistance level of $30000, reaching a maximum of $30800. It rose by over 10% within 24 hours, reaching its highest price since April 2023
Interface News Reporter | Sima Linwei
On June 22nd, market data showed that the price of Bitcoin, the world's largest cryptocurrency, broke through a key resistance level of $30000, reaching a maximum of $30800. It rose by over 10% within 24 hours, reaching its highest price since April 2023.
According to Wind data, in the performance of major global assets in 2023, Bitcoin's year-to-date increase has reached 81.56%, ranking first in the world, far surpassing the performance of major assets such as Russia's MOEX and NASDAQ.
Thanks to the strong performance of Bitcoin, the total market value of cryptocurrencies has skyrocketed. According to CoinGecko data, as of the time of publication, the total market value of cryptocurrencies reached around $1.22 trillion, with a 24-hour increase of 5.7%.
In mid to late June, the Bitcoin market, which had been trading sideways for a long time, began to experience significant fluctuations. After briefly reaching the $31000 level on April 14th, Bitcoin prices began to decline and briefly fell below the $25000 level in mid June. After entering this week, Bitcoin prices began to recover, rising continuously from around $26000 and once again regaining the $30000 mark.
Federal Reserve Chairman Jerome Powell reiterated in his testimony to the House Financial Services Committee on Wednesday that there is still a long way to go to reduce inflation to 2% and that interest rates need to be raised to curb inflation. US stocks closed lower on Wednesday, with technology stocks leading the decline, with the Nasdaq down more than 1.2%.
It is worth noting that Powell also pointed out that Federal Reserve staff have participated in talks with lawmakers from both sides regarding the cryptocurrency legislation that committee members have been committed to. He observed in his testimony that the cryptocurrency industry "seems to have a certain degree of durability", although Powell also stated that the cryptocurrency market has fallen significantly since last year.
On June 14th, Powell announced that the Federal Reserve would maintain its target range of 5% to 5.25% for the federal funds rate and suspend the pace of interest rate hikes. Since the start of this interest rate hike cycle in March 2022, the Federal Reserve has raised interest rates 10 times in a row, with a cumulative increase of 500 basis points, which is the fastest pace of interest rate hikes since the 1980s. Since the beginning of this year, the Federal Reserve has slowed down the pace of interest rate hikes, raising rates by 25 basis points in each of its past three meetings.
Against the backdrop of the gradual shift of the Federal Reserve's monetary policy towards "doves", the rebound in the cryptocurrency market may be related to the recent frequent deployment of traditional financial institutions in the cryptocurrency field.
Last week, BlackRock, one of the world's largest asset management companies, announced its application to the SEC for a Bitcoin spot ETF, which attracted widespread market attention. Afterwards, investment management companies Invesco (IVZ) and Galaxy Digital, which manage $1.4 trillion in assets, also reapplied for spot Bitcoin Exchange Traded Funds (ETFs). WisdomTree, another US asset management company, also reapplied for Bitcoin spot ETFs on Tuesday after being rejected by the US Securities and Exchange Commission in 2022.
Meanwhile, another major recent news is the announcement of the launch of the new cryptocurrency exchange EDXMarkets, supported by CitadelSecurities, Fidelity Investments, and Charles Schwab, among the world's largest market makers. EDXMarkets is an institution only exchange that provides an 'non custodial' model, which means it does not hold customers' digital assets during trading, but is managed by third parties.
In addition, on Tuesday, the banking giant Deutsche Bank also announced the deployment of cryptocurrencies, confirming that they have applied to German regulatory authorities for the qualification of cryptocurrency custody operations.
This month, the United States Securities and Exchange Commission (SEC) also launched a severe crackdown on the cryptocurrency industry, accusing 19 tokens of being essentially securities in lawsuits filed on June 5th and 6th against the cryptocurrency exchange Coinbase and Coinbase, respectively. The market reacted strongly to this, with the average price of 18 tokens defined by the SEC as "securities" falling by 28.8%, but the prices of Bitcoin and Ethereum did not collapse.
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