Bitcoin reaching its all-time high was the best highlight for the week, while the highly volatile crypto market continued to log increasing daily trading volumes as well.
Another week with net positive returns for the crypto market has gone by! Traders noted a highly volatile crypto market, with surging volumes. Bitcoin, as usual, led the market rally and also reached its all-time high at over $73,500. On the other hand, other crypto tokens also registered optimistic returns. Prominent tokens like BNB and SOL saw double-digit weekly gains.
The high crypto volatility could have occurred due to a host of factors. BTC gradually went over $70,000 at the beginning of the week after holding the $68,000 during last weekend. It traded above $70,000 on consecutive days until March 14. In the later hours of that day, a sudden crypto market correction sent it below $68,000 yet again. Fortunately, it has recovered to above the level. All along the week, crypto volumes stayed high.
ETH also lost its weekly returns during the correction. It had surged above $4,000 during the rally. Nonetheless, its support at $3,500 appeared firm enough to sustain itself over the weekend. The highly volatile crypto market could also see uncertain movements in the upcoming days.
A major reason for the correction could have been the rising inflation numbers in the US. Higher inflation could be a key obstacle for future interest rate cuts in the economy, reducing capital inflows. As a result, crypto traders could have taken cautious positions in the market. Meanwhile, Bitcoin’s robust support levels come as a breather before it undertakes another broader rally.
On the regulatory front, Europe made the most headlines this week. European regulators have announced new rules for stablecoin issuers in the region and published regulatory technical standards. Moreover, two new trends in the United Kingdom also caught the eye of the crypto industry.
Firstly, the London Stock Exchange announced it would start accepting applications for exchange-traded notes. It probably made the decision after witnessing the popularity of the spot Bitcoin ETFs in the US. The UK Treasury also made a few changes, altering anti-money laundering rules. The new rules could also mean a policy shift for the country’s crypto sector.
Institutional crypto investors continue to rise steadily. A report by Bitwise also claimed the same earlier during the week. Improving regulatory standards, a market rally and the ease of investing could drive the inflow of both institutional and retail crypto investors.
These tokens rose the most during the week:
But the following tokens suffered the highest losses during the week:
A combination of macroeconomic factors, the BTC-halving event, capital inflows, and regulatory changes could impact the industry going ahead.
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