Potential Crypto Market But Big Volatility

Market situation

US stocks closed Friday almost flat in the Dow and S&P 500, while Nasdaq fell slightly. The market fear last week came from the S&P 500.

One psychological threshold is that if the S&P 500 falls 20% from its peak, it is a sign that the market is entering a bear market. This is a symbol and a psychological barrier for investors. Last Friday, the S&P 500 fell 20% from its peak, so US stocks fell into a panic. However, it later recovered and the decrease to 18% made investors feel more secure.

The crypto market is green today. BTC rallied back to the $30,000 level.

This week, the market is also waiting for the detailed report of the Fed meeting in early June to be published. The Fed is also under pressure to reduce the inflation rate faster but needs to keep the unemployment rate low. The economic results will also affect the election later this year.

CFTC recognizes BTC and ETH as commodities

Recently, the SEC also answered a question about the agency still not accepting BTC and ETH more. The reason given by the SEC is that the name “Bitcoin and Ethereum” is too general, many people mistakenly think that it includes many other cryptocurrencies.

Meanwhile, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has expressed his belief that Bitcoin and Ethereum are commodities, even though the digital asset market includes both commodities and securities. securities. Therefore, he argues, separating which one would be a necessary step towards proper regulation. Therefore, the management of BTC and ETH should be under the management of the CFTC and not the SEC.

The SEC is also in the midst of a lengthy lawsuit over its own ambiguity. The SEC lawsuit accuses Ripple of selling securities and XRP as securities. The lawsuit is in favor of Ripple company when the company requires the SEC to give a reason why this agency recognizes BTC and ETH as not securities and XRP is listed as securities. The SEC declined to release emails regarding former executive William Hinman’s 2018 speech in which he argued that BTC ETH is not a security. The most recent information is that the judge has asked the SEC to provide evidence of William Hinman’s argument but has not received a response from the SEC.

Crypto with potential but also great volatility

Commonwealth Bank of Australia, a Sydney-based bank with multinational operations, has halted testing of features that allow the sale of cryptocurrencies on its app. They decided to stop because the crypto market has been volatile and plummeted recently. At the same time, the bank also said that the current regulations regarding uncertainty and clarity.

Over the past time, many banks and organizations have seen the strong development potential of Bitcoin and crypto. Therefore, they also gradually changed their stance from being skeptical of criticism to accepting and providing crypto-related products to their customers. Along with the potential for growth and great profits, Bitcoin and crypto still look like a very small market compared to other markets such as stocks, gold, real estate, etc. So the crypto market is still There can be large fluctuations in price.

Major banks in the US such as Morgan Stanley, Bank Of America also say that they continue to believe in the potential and offer crypto products to their customers. Algorithmic stablecoins are particularly complex, and the UST crash may affect institutional players to take a closer look at the technology behind these tokens.

MicroStrategy’s new chief financial officer, Andrew Kang, says that the company’s long-term plan to buy and hold Bitcoin will not change despite the ongoing crypto market volatility. The company will stick to its Bitcoin plan by not selling any BTC.

In the long term, Bitcoin as well as crypto still has great growth potential in terms of market capitalization and expansion. The long-term trend of BTC is still bullish despite major short-term fluctuations. Therefore, when choosing an investment, participants need to balance risk and profit, and carefully study the market.