Bitcoin’s trading range has broadly moved between $60,000 and $64,000 this entire week, leading to sideways action in crypto chart patterns. The sector also saw multiple regulatory events.
If one observes Bitcoin’s seven-day crypto chart patterns, a broad horizontal price action emerges. This is mainly because the Bitcoin trading range did not go through wide volatility swings during the week. It oscillated between $60,000 and $64,000, but since traders and investors held cautious stakes, the market was largely stationary. At the same time, global events in the crypto sector brought a spark of optimism for the rest of the month.
Analysts and experts haven’t suggested a single reason for the slow crypto market. The sideways movements of the crypto chart patterns have come days after the Bitcoin-halving event. Traders term this a post-halving slowdown since the last few months saw rallies fuelled by the halving event and the spot Bitcoin ETFs.
Amidst the market uncertainty, regulators have been leading headlines throughout the week. J. Christian Giancarlo, a former chair of the United States Commodities and Futures Trading Commission (CFTC), spoke extensively on crypto at an event. His speech mainly focused on stablecoins and central bank digital currencies (CBDCs).
He said, “Let’s set standards for digital currencies, sovereign and non-sovereign CBDCs, and stablecoins that are worthy of human liberty and people everywhere who aspire to liberty.” Giancarlo is also currently heading a CBDC project.
A member of the European Central Bank also pondered the use of digital currencies. The member, Joachim Nagel, also stated that retail money had limitations, and CBDCs had the potential to overcome them. According to him, central banks worldwide had to embrace digital ledger technology to keep up with current times.
Asset tokenization was another subject that gained prominence this week in Hong Kong and the US. In Hong Kong, the region’s central bank took the initiative to start trials for it. As far as regulation is concerned, Hong Kong has taken the lead in creating a friendly regime for the global crypto space.
On the other hand, in the US, an association of financial services firms will lead the start of trials for tokenized settlements. Several reputed banks, such as Citi, Mastercard, JP Morgan, and others, are part of the project. As these behemoth financial majors proceed with the trials, the applications of tokenization as a crypto use case could strengthen.
During the week, the following tokens registered the highest gains:
The tokens suffered the highest losses:
At this point, the market’s trajectory could swing either way. A positive signal has emerged from the price strength of altcoins, many of which registered gains this week. In the upcoming week, bulls and whales will likely continue to focus on the price ranges of Bitcoin and Ethereum.
Check out Millionero’s blog for more insights on the global crypto sector!