The Week in Crypto: Bitcoin Price Volatility, U.S. Election Impact, and Major Settlements
Key Takeaways
- The bitcoin price fell last week ahead of inflation and Federal Reserve news but did not rebound as much as other risk assets.
- U.S. presidential candidates Donald Trump and Joe Biden continue to show that crypto is a notable election issue.
- Terraform Labs agreed to a $4.5 billion settlement with the SEC.
- Binance founder Changepeng Zhao was found to be one of the richest 25 people in the world.
- This week, crypto analysts are watching the bitcoin price closely to see whether the recent volatility is over.
The past week has been a rollercoaster ride for the price of bitcoin (BTC). The price of bitcoin fell below $67,000 on Tuesday before bouncing back slightly on Wednesday, only to tumble again on Friday. While other risk assets like stocks managed to recover on favorable inflation data, bitcoin struggled to regain its losses.
Despite the performance of bitcoin, cryptocurrency has become a significant topic on the U.S. presidential election campaign trail. Former President Donald Trump has shifted his stance on cryptocurrencies, actively engaging with the crypto community to gain support against rivals Joe Biden and Robert F. Kennedy Jr. Trump’s campaign is now accepting cryptocurrency donations and positioning itself as a defender against what he calls “Biden’s hatred of Bitcoin.”
On the other hand, the Biden Administration’s approach to Bitcoin and crypto has faced criticism, with recent vetoes on legislation supporting crypto custody by financial institutions and proposed taxes on Bitcoin mining. Biden’s camp is also expected to start accepting campaign contributions via crypto, indicating a growing influence of digital assets in the political landscape.
In other news, Terraform Labs reached a $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC) over the TerraUSD stablecoin disaster from 2022. The settlement aims to provide restitution to investors and deter future fraudulent activities in the cryptocurrency market. Additionally, Binance founder Changpeng “CZ” Zhao has seen a significant increase in his net worth, making him one of the world’s richest individuals.
Looking ahead, all eyes are on the bitcoin price this week as digital asset investment products experienced significant outflows amidst recent price fluctuations. Companies like MicroStrategy announced plans to purchase more bitcoin, indicating continued interest in the digital asset despite market volatility. The SEC’s potential approval of spot ether ETFs also remains a key focus, with predictions suggesting a likely resolution over the summer.
Overall, the cryptocurrency market continues to be influenced by price volatility, regulatory developments, and political dynamics. As investors navigate these challenges, staying informed and monitoring key indicators like the bitcoin price will be crucial in making informed decisions in the evolving crypto landscape.
Sources:
1. Investopedia
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For more information, visit Investopedia’s original article [here](https://www.investopedia.com/cryptocurrency-market-news-bitcoin-creeps-up-but-still-under-usd70k-8664175).
