Bitcoin and ether prices stalled this week as investors fretted about vibrant jobs data and continued U.S. central bank hawkishness, and then about the potential for increased crypto regulation.
The SEC’s agreement with exchange giant Kraken that it will sunset liquidity staking services for U.S. customers, and the likelihood of the SEC classifying ether as a security, has shifted the main narrative away from macroeconomic uncertainty and towards the regulatory environment.
Bitcoin and ether suffered a significant decline in value over the last week, losing around 7% each. This has caused them to fall behind other cryptocurrencies in terms of growth, with both now only up around 30% for the year.
While this may seem like a significant drop, it is worth noting that this week’s decline follows a five-week period of growth.
This week also marked a separation between cryptos and traditional finance indexes, with the correlation between bitcoin and the S&P 500 falling.
This could suggest that the crypto market is becoming more independent and that investors are starting to see it as a separate asset class.
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