The two biggest digital currencies, Bitcoin and Ethereum, have been in the news recently as their values continue to grow. The second-largest cryptocurrency internationally, Ethereum, recently crossed the $30,000 threshold and hit a multi-month high of $2,000.
Following the successful completion of the Shanghai and Capella (Shapella) upgrades, the price of Ethereum (ETH) has increased. The price of Ether reached a year-to-date high of $2,123 on April 14, thanks to this positive enthusiasm.
The update has resulted in a 30% increase in daily fees for the Ethereum decentralized finance (DeFi) ecosystem, making the Ethereum proof of stake (PoS) token economy deflationary. In the last 24 hours, this has resulted in a 32% rise in revenue.
As a result, the successful upgrade and encouraging development in the DeFi ecosystem have caused ETH prices to increase. Regulator and privacy worries persist, though, and they may affect the value of cryptocurrencies in the future.
Impact of Ether Staking and Dominance on ETH Price Amidst Macro Factors
Despite some exits from the Ethereum community, deposits for staking Ether have increased, encouraging Ethereum’s future.
Furthermore, many stakes in the Ethereum ecosystem may soon be profitable due to the narrowing of the difference between the average staked price and the current Ether price.
The values of Bitcoin and Ether are rising, but Ether is overtaking Bitcoin and other cryptocurrencies. However, other analysts think an Ether price decline is still probable because of a potential U.S. sector crackdown and interest rate hikes brought on by inflation.
It is important to note that the FedWatch tool continues to predict that the Federal Reserve will increase interest rates at its meeting on May 3.
Despite these short-term roadblocks to prospective price rise, favorable regulatory clarity and a pause in interest rate hikes supported the demand for ETH. Ether’s price volatility is therefore expected to persist.
U.S. Stablecoin Framework Draft Bill Released: Potential Impact on Crypto Industry
A draught bill from the U.S. House of Representatives has been made public, and it may affect stablecoin issuers like Circle and Tether. The legislation would compel non-bank issuers to register with the Federal Reserve and offers a framework for stablecoins.
However, the new U.S. Senate law calls for two years of a prohibition on stablecoin issuance and severe fines and jail time for stablecoin issuers who don’t register. By imposing more regulation and scrutiny on the Bitcoin sector as a whole, the law may damage investor sentiment.
Meanwhile, some experts think it would encourage institutional investors looking for regulatory clarification to adopt cryptocurrencies more widely. Investors should be mindful of the potential dangers and opportunities, even if it is unclear how this measure will affect bitcoin values in the medium run.
U.S. Retail Sales Drop Impacts on Bitcoin Price
On the other hand, a decline in U.S. retail sales in March suggests that the economy is slowing down. However, traders would likely prefer conventional investments like stocks to Bitcoin in May due to the Federal Reserve’s anticipated increase in interest rates. This was a crucial element that restrained any further price increases for Bitcoin.
Because of this, Bitcoin’s price decreased by 0.31% over the previous day. Due to likely inflation, which could be higher than expected, there is uncertainty in the market, which makes investors cautious.
Bitcoin is trading in a limited range between $30,200 and $30,500 on Sunday, remaining sideways. On the upside, the BTC price may go towards the next resistance zone of $30,700 or $31,000 if a bullish crossover occurs above the $30,500 mark.
A bearish breakdown below $30,200 might expose the BTC price to the $29,900 or $29,700 levels on the downside.