Bitcoin pulled back from its recent $82,000 high last week as traders and investors became concerned that the Federal Reserve could keep rates higher for longer following hotter than expected inflation data, Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro writes.
CPI rose 3.8% year-over-year, the highest since May 2023. Core CPI, which excludes the more volatile food and energy components, increased 2.8%, keeping inflation well above the Federal Reserve’s 2% target.
Altcoins also came under pressure last week amid inflation-related concerns. Ethereum, solana, and XRP fell 11%, 12% and 6% respectively.
Looking ahead to this week, with no major US economic data scheduled for release, the ‘higher-for-longer’ interest rate narrative could continue to dominate market headlines.
On the regulatory front, the crypto world will remain focused on developments surrounding the CLARITY Act, after the Senate Banking Committee advanced its crypto market structure bill last week. Investors are increasingly treating regulatory clarity as a bullish long-term catalyst, because clearer rules could encourage greater institutional participation in the US crypto market. More on this story below.
BIGGEST MOVERS
$HYPE is up 9% in the last seven days, bucking the trend of the overall crypto market, following the listing of a SpaceX pre-IPO perpetual future on the Hyperliquid decentralized exchange.
The listing has attracted significant attention across crypto markets as it gives traders a way to speculate on the perceived value and momentum of SpaceX before any public stock market listing.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
Senate Banking Committee advances crypto market structure bill
The Senate Banking Committee voted 15-9 on Thursday last week to advance their version of the crypto market structure bill, marking a significant step forward for crypto regulation in the United States.
The passing of the bill had previously been delayed for months due to disagreements over stablecoin yield. Lawmakers and the traditional banking sector had raised concerns that yield-bearing stablecoins could compete directly with bank deposits and savings products, potentially triggering bank runs, reducing banks’ ability to lend, and creating broader market stress.
With the Senate Banking Committee hurdle now cleared, the bill must be merged with the Senate Agriculture Committee’s version, which passed earlier this year, to create a single unified bill for debate and a vote on the Senate floor, likely in late June or July.
If the Senate passes the bill, it must then undergo a reconciliation process with the House of Representatives’ version. Once both chambers pass identical text, the unified bill will head to the President’s desk to be signed into law.
Lawmakers and prediction markets are currently targeting October or November this year for final enactment.
