Macroeconomics is playing with the global crypto market as Bitcoin saw losses after the European region recorded deep inflation. The week saw weakening sentiment as S&P dipped lower by 1.29%.
On Friday, Bitcoin slipped by more than 9% following an unexpected dampening inflation report from Germany. This renewed concerns about the pace of interest rate hikes in the United States. Investors in the US have also been left on the edge by declines in the housing market. Joe DiPasquale, the CEO of BitBull Capital, believes BTC’s failure to breach the $25,000 mark has capped its rally and it appears that macroeconomic concerns continue to affect markets. However, he is optimistic that healthy consolidation leading into September will be a positive sign for the bulls, that is if the much-loved Bitcoin does not create a new low below $18,000.
Bitcoin is currently trading at $21,442. It gained 1.04% in the last 24 hours but lost 13.55% in the past seven days. Ethereum lost 19.20% in the past seven days and is changing hands at $1,600. The second most popular cryptocurrency is correcting losses. It is likely to face resistance near the USD 1,650 level. The next resistance is most likely USD 1,720, after which there could be a steady price rise. As for Bitcoin, there is resistance at the USD 21,650 and at the USD 22,000 mark.
Meanwhile, Gary Gensler the chair of the Securities and Exchange Commission (SEC) reiterated his call for crypto firms to comply with securities law. He pointed out that crypto lending platforms are freezing accounts and recent bankruptcies have left investors beholden to legal proceedings. Gensler said there is no reason to treat the cryptocurrency market differently from the rest of the capital markets just because it uses a different technology.