Despite a deteriorating global financial situation, crypto prices have risen over the previous week.
According to CoinGecko, bitcoin was trading at $23,739 at the time of writing, down 3.1% in the last 24 hours, while ether was at $1,701. Nonetheless, both cryptocurrencies increased dramatically in the previous week, with Ethereum gaining 10% and bitcoin gaining 5%.
Before the US Federal Reserve’s announcement on interest rates, crypto’s global market size fell below $1 trillion, causing prices to fall earlier in the week. After the decision to hike rates by 75 basis points, prices rebounded and began to trend higher.
Thursday’s GDP data indicated that the US economy had contracted in the second quarter and was followed by more price appreciation. Tuesday, Cumberland provided its market analysis, stating that digital assets were down due to liquidations in June and upcoming macroeconomic and crypto-fundamental triggers.
Other than Ethereum’s upcoming merging, most crypto fundamentals are on the horizon related to legal and regulatory issues, according to a Chicago-based consultancy. Stablecoin legislation will likely be delayed for several months, with the Securities and Exchange Commission’s continuing efforts playing a role.
The head of trading at Cumberland, Jonah Van Bourg, closed his post by stating, “When the macro fog lifts, money will rush into the most promising new trades. We continue to think digital assets will be one of the more intriguing of these emerging theses.” The “macro fog” referred to volatile macroeconomic conditions worldwide, including US monetary policy disputes, European conflict, and how nations manage the post-pandemic transition.
In its most recent statement, market maker QCP Capital said it expects markets to trade sideways in the following weeks since the Fed’s interest rate decision has passed and inflation is falling. The report did mention, however, that Nancy Pelosi’s trip to Asia may be a reason for alarm. Pelosi had intended to visit Taiwan on her journey, which might have escalated tensions between the United States and China.