The crypto market seems to be moving fully towards the road to recovery, as US economic data on inflation proved to be better than expected. In anticipation of these results, the market had been seeing an increase in bullish activity throughout the week, after which BTC surpassed $18,200 for the first time in a full month. Although the gain in the last 5 days stands at merely 4%, it is a much-awaited step in the right direction for the wider crypto market.
Highlights of the week
The latest US inflation report demonstrated a 7.1% rise in consumer prices, which was considerably lower than the October figures of 7.6%. This slowing in inflation had seen a positive reaction from across the financial markets, with stocks booming, and the likelihood of the Fed’s aggressive interest rate policy approaching a close. In these bearish conditions, BTC skyrocketed to above $18,000, and ETH to has been trading at a 5-week high.
Officials from the Russian Energy Department announced the initiation of crackdowns against crypto-miners in residential areas. The action will be targeting those individuals that are employing subsidized electricity for residential purposes, in order to mine various cryptocurrencies. The officials further emphasized that miners would be charged with the commercial, rather than the subsidized cost of energy.
According to the Argentine Central Bank, mobile payments are fast becoming the standard norm of payments, overtaking its more traditional competitors such as credit and debit cards. Statistics show that a staggering 60% of payments in the country were conducted via mobile payment platforms, and thus represent a ripe opportunity for crypto payment adoption.
The disgraced former CEO of FTX, Sam Bankman-Fried appeared in front of a Bahamian judge, with his lawyer requesting bail. The bail eventually saw denied, with SBF sent to prison until February, of the next year. The proceedings are on the radar of all stakeholders of cryptocurrency, given the implications it holds for the rules and regulations that will emerge, determining the future of the industry.
In his congregational hearing, finance guru and Shark Tank star, Kevin O’Leary did not hold back, and went after Binance, blaming them for the FTX fiasco. He stated that Binance continuously chose to not comply with the regulator’s requests, which eventually led to the conditions that put FTX out of business.
Crypto fear & greed index
The crypto fear & greed index, for the fourth consecutive day, has been demonstrating gradual improvement in market sentiment. The index returns a figure of 31, which although well within the fear zone, is the highest it has been throughout the prior five weeks. This positive sentiment likely stems from positive data from the US economic report, which has always had bearing on the direction the crypto-market takes.
With the market changing gears to a more bullish stance on cryptocurrencies, a recovery with Bitcoin and Ethereum may be due. The price movements of these top crypto-names, as well as overall market volume, would be metrics that are closely under watch.