Week in Review
Cryptocurrency markets have continued to experience volatility and uncertainty this week as traders remain cautious amid a variety of economic, political, and regulatory events. The total market capitalization of cryptocurrency assets remains above $1 trillion despite some significant swings throughout the week.
The major news story that drove most of the attention was Tesla’s announcement that it would accept Bitcoin as payment for its products. This sent the price of BTC up almost 20% over two days before retracing back to its previous levels. Other tokens such as Ethereum also experienced large gains following the announcement but were unable to maintain their momentum due to trader caution in light of upcoming legislation from China targeting digital currency trading activities.
The SEC has also been making headlines this week with reports that it is looking into possible manipulation within certain digital asset markets, particularly Dogecoin which recently hit an all-time high on speculation surrounding potential partnerships with companies such as Amazon or Apple. In addition, USDT (Tether) has seen increased scrutiny over allegations regarding its use in illegal activities such as money laundering and tax evasion schemes throughout various international jurisdictions.
Overall, despite some negative news flow around regulation, there are still signs that institutional investors are showing continued interest in cryptocurrencies both directly through investments into Bitcoin but also indirectly via projects like Ethereum 2.0 which promises faster transaction speeds and other features attractive to larger players entering crypto markets for the first time