Bitcoin closed the month of July with a gain of more than 40% from its lowest level during the month at $29,250
Bitcoin closed the month of July with a gain of more than 40% from its lowest level during the month at $29,250, seeing a rally above the $42,000 level for a limited time at the end of last weekend.
With the beginning of this week, I fell digital currency The leader gradually reached above $37,800 on Wednesday (August 4) but bounced back above $40,000 on Thursday, and the total cryptocurrency market cap has lost about $25 billion since Monday to currently stand at $1.58 trillion.
Ethereum also saw its price rise by 50 % from the July 20 low to over $2,600, with BNB and ADA coins gaining close to 30%.
The total market capitalization of digital currencies reached more than 1.6 trillion dollars on Monday (August 2), while on July 20 it recorded less than 1.2 trillion dollars, which represents an increase of about a third in its value.
Despite this, the total market capitalization is still a far cry from the more than $2.5 trillion peak recorded in the first half of May, and the bitcoin price is still about 38 % lower than its peak of $64,000 reached last April.
Bitcoin faces more pressure
Bitcoin is back on the rise thanks to statements by a Federal Reserve Bank official, who expressed his doubts about the Federal Reserve’s establishment of a digital currency, and said that the Reserve Bank’s digital currency would spare commercial banks that act as intermediaries, as it threatens the division of labor in the financial system. .
Despite this, the pressure on the currency price is increased by increasing regulatory pressures in the United States, as the US Congress is considering the possibility of imposing a tax on cryptocurrency transactions. The digital market, especially since the crypto market is riddled with fraud, exposes investors to a lot of risks.
Genlser stressed the need for additional congressional oversight to prevent transactions and platforms from falling into the regulatory cracks. At the same time, we need supportive mechanisms that protect investors in this fast-growing and highly volatile market.
A new beginning
A crypto market analyst says that the new demands of US financial regulators for digital currencies are a fresh start for bitcoin and digital assets with US government authorities, adding that these are demands by the Securities and Exchange Commission, which is the financial regulator of the largest economy in the world. The world has repeatedly asserted that cryptocurrencies are a significant growth market and are gaining more and more influence within the prevailing global financial system.
Crypto experts are of the opinion that the interest of financial regulators in the cryptocurrency market confirms that it is time to hold crypto assets to the same standards as the rest of the financial system, although this change is likely to lead to some turmoil in the market, but regulation will ultimately be beneficial to investors.