The cryptocurrency market remains relatively flat this Tuesday. Bitcoin and Ethereum prices have shown little changes in the past 24 hours. After dropping to the $21k range last week, the BTC price manages to hold support. The increase in trading volume suggests that the market could be preparing for its next move and pushing the price to new heights this week. Bitcoin’s 24-hour trading volume is up by over 26%, currently at $32.7 billion. Let’s look at any relevant crypto market news that could affect prices this week.
Yesterday’s big news related to the fact that Bitcoin’s transaction fees dipped below $1. The decline in the fees marked the lowest level the fees have been at in over two years, showing that even with the rise in popularity of blockchain technology, Bitcoin remains a viable network for transacting and storing value.
In other news, according to a report from CoinTelegraph, Australia’s government signals its crypto regulation stance with Jim Chalmers, the Treasurer, saying that the government is looking to establish rules to protect consumers.
The name for Australia’s regulatory framework is “Token Mapping.” The idea behind this system is to classify assets based on the underlying technology and code that the digital assets use. The process will also look to provide different crypto in several classes with licenses to operate in the country.
While a similar regulatory approach could work in the United States and worldwide, regulators must implement technical knowledge of blockchain and its technology. To effectively and adequately token map the various assets, there need to be developers and blockchain experts on the regulatory board that could advise and explain to legislators what each token does and how to classify it.
Moreover, with many tokens in circulation, it would take significant resources to map the hundreds of digital assets in cryptocurrency markets effectively.
Overall, token mapping is a step in the right direction. Focusing on the tech aspect of digital assets and differentiating them based on the underlying code is a much more effective strategy than classifying crypto assets as either commodities, securities, or traditional currencies.
The stock market is showing bearish momentum this Tuesday as the Dow Jones slumps over 800 points, down 2.54% in the past 24 hours. Tech stocks are unfortunately also underperforming this week, with AMC stock down by over 41% in the past 24 hours.
AMC’s substantial stock price crash comes amid the movie giant announcing its new preferred APE stock. Not to be confused with Yuga Labs’ ApeCoin, AMC’s APE refers to the “AMC Preferred Equity” class of shares.
APE shares will be issued as dividends to existing AMC shareholders and will start trading publicly soon after. The primary difference between AMC stock and APE shares is that the two could show deviations in price. It’s not standard to start issuing dividends in the form of a stock rather than in US dollars. That could be why investors are selling AMC stock, as they aren’t as interested in receiving dividends in APE.
In other tech stock news, Netflix is down 6% today, Amazon is down 3%, and Apple has been down 2% since Monday. The good news is that even with the bearish momentum plaguing stock markets, Bitcoin manages to hold current levels and not dip below the $21k range. Moreover, the global crypto market remains above $1 trillion, signaling a relatively healthy sentiment.
We’ll likely continue trading sideways, with Bitcoin and Ethereum prices remaining relatively flat. The increase in trading volume for BTC could create momentum for a bullish run later in the week.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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