Bitcoin peaks at $70,000 before decline

WEB DESK: Bitcoin hiked to nearly $70,000 at the start of the final week of July but then experienced a decline on Monday.

The cryptocurrency hit a high of $69,982.00 on Monday before falling to $67,264.00, marking a decrease of more than 1 per cent. The volatility came amid a backdrop of political developments and expectations surrounding central bank meetings.

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The cryptocurrency’s ascent to near $70,000 was short-lived, as Bitcoin pared gains during a period marked by political and economic uncertainty. Earlier in the day, Bitcoin had risen to its highest point for the week, but it faced selling pressure that led to its decline.

Despite the drop, the most famous cryptocurrency ended the previous week with a modest gain of 1 per cent.

Ether shows mixed performance

Meanwhile, Ether also showed mixed performance. It initially gained over 1 per cent to reach $3,311.28 but later saw its earlier gains diminish. Ether’s recent performance contrasts with Bitcoin’s, as it ended the prior week with a 7 per cent drop.

The fluctuation in Ether’s value highlights the broader volatility in the cryptocurrency market.

Traders are closely monitoring the Federal Reserve, the Bank of Japan, and the Bank of England as they hold meetings this week.

Political events have also impacted the cryptocurrency market. Former President Donald Trump addressed the Bitcoin Conference in Nashville, criticising Democratic lawmakers and Securities and Exchange Commission (SEC) Chair Gary Gensler.

Trump’s speech included a pledge to maintain 100 per cent of the US government’s bitcoin holdings as part of a National Strategic Bitcoin Reserve if elected.

Similarly, Senator Cynthia Lummis announced plans to introduce a bill aimed at creating a bitcoin reserve. Her proposal involves a programme to acquire around 5 per cent of the total bitcoin supply over time.

Recent developments with Ether ETFs and Mt. Gox have significantly impacted cryptocurrency prices.

Mt. Gox, a defunct exchange, has begun transferring approximately 5,000 bitcoins to its creditors. This increased supply could put downward pressure on Bitcoin’s price. As a result, Bitcoin recently experienced a decline, bringing its price to $65,891.50.

Meanwhile, the launch of Ether ETFs has introduced new dynamics to the market. Although the exact impact on Ether is not fully clear, the cryptocurrency’s price decreased as well.

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Analysts expect that the adoption of Ether ETFs will be gradual compared to bitcoin ETFs, and market movements may continue to be influenced by ongoing political and economic developments.