Most of the prior week had proven to be relatively quiet with no major trigger initiating a rally in either direction. After the tumultuous swings of the prior weeks, as well as the sheer panic surrounding the markets, many anticipated this to be a rare lull before the storm. Since Tuesday of the prior week, Bitcoin had seen a fall of slightly more than 4%. There is still uncertainty, mixed with optimistic anticipation towards the future of the wider cryptocurrency market.
Highlights of the week
- Ethereum’s infamous “merge” has been the talk of the town, with the cryptocurrency giant making a fundamental shift in its underlying verification technology system. The older energy-intensive approach is being ditched for a proof-of-stake method, which Ethereum claims will lead to the cutting of its carbon emissions by an impressive 99%.
- The government of Singapore had earlier announced its plans to bring out tougher rules to help regulate transactions relating to cryptocurrencies. The chief of the country’s central bank justified these measures on account of traders and investors being “irrationally oblivious” to the risks of digital assets. Crypto-market participants have criticized the proposed regulations, which will further complicate retail investments.
- BTC price briefly fell beneath the $20,000 mark after the Federal Reserve Chair, Jerome Powell stated that interest rates are likely to further see an increase. The uncertainty as to when and by how much triggered a sell-off in the market, bringing giant cryptocurrencies like Bitcoin to its knees. The following days brought about an upward correction, ensuring a degree of momentary stability in the market thereafter.
- Iran aims to brace for the severe sanctions it faces in the upcoming months and years. One way this has been apparent the government is giving approval to the cryptocurrency regulations put forward throughout the prior months. As a result of the circumstances, the country could well be on its way to being amongst the first where digital currencies will see their full macroeconomic potential realized.
- The top court in the Central African Republic blocked a proposal by the country’s government that allowed the “Sango coin” for the use of purchasing property or citizenship. Individuals seeking Central African citizenship could have done so for a mere $60,000 payment. This is now unconstitutional as per the latest court ruling.