After several tumultuous weeks, the cryptocurrency market is finally showing signs that indicate stability, to a large degree. The total crypto market cap presently exceeds the $1 trillion mark, which is always a positive for traders, indicating a wider bullish approach in the market. BTC prices continue their push to surpass the $21,000 mark, whereas ETH has climbed by over 20% in the last month alone. Many optimists in the market are taking these indicators as signs to significantly up their exposures and long positions on crypto-assets. In this Stocks Telegraph article, we go over the top news stories impacting the crypto market this week:
Highlights of the week
Following the recent bullish shift, bitcoin has been experiencing, both long and short-term skews in the BTC options market have climbed up to zero. This has happened for the first time since March, suggesting weakening demand for downside protection through put options.
The crypto market is eagerly assessing the next announcement by the US Fed, as many expect an interest rate hike of at least 75 basis points this week. Although market sentiment has finally approached the neutral zone, after months of extreme fear, there remains uncertainty as to how the market will react to such a significant hike.
Amid wider acceptance of digital currencies by central monetary authorities, Thailand’s central bank has stated that it is still pessimistic about the benefits of such an initiative. It further stated that the country could take several years until a retail digital currency is launched for the general public.
In Paraguay, the National Power Administration voiced serious concerns about the country’s power stability in light of rapidly growing bitcoin mining operations. The country has been seeing a boom in the crypto activity, which entails large volumes of unregulated mining, where many users illegally access power sources without making payments.
The popular author and finance guru, Robert Kiyosaki has once again gone on a tirade against, what he labels, ‘fake, paper money, citing fears of a crash, as the US Federal Reserve continues its path of interest rate hikes. Kiyosaki advised listeners that the safest option to protect one’s net worth would be stocking up on bitcoin. He further painted a gloomy scenario of a crash engulfing real estate, stocks, and bonds.