This week, the cryptocurrency market experienced significant volatility with Bitcoin plummeting. Despite this, positive macroeconomic news and major technological advancements could shape a brighter future. Stay informed with our essential recap of the key developments.
The week began with a shockwave: the crypto market suffered a severe correction, with total market capitalization falling below $3 trillion. Bitcoin (BTC) led the decline, plunging below $86,000, triggering over $640 million in liquidations on leveraged positions. This massive selloff, initiated in Asia, brought a sense of fear back to the market, erasing some of the spectacular gains from the previous month.
However, a major macroeconomic event helped counterbalance this trend: the U.S. Federal Reserve ended its Quantitative Tightening (QT) program. By ceasing to reduce its balance sheet, the Fed could indirectly inject liquidity back into financial markets. Historically, an increase in global liquidity has often benefited Bitcoin, suggesting a potential rebound in the coming months.
Beyond price action, the ecosystem continued to build. Ethereum deployed its “Fusaka” upgrade, a crucial technical milestone to improve network performance, particularly for liquid staking validators. Meanwhile, VeChain (VET) launched its “Hayabusa” upgrade, aimed at optimizing scalability for supply chain applications.
On the regulatory front, a positive signal came from investment products. The NYSE listed the Grayscale Chainlink ETF (GLNK), offering a new institutional gateway to Chainlink (LINK) decentralized oracles. In Singapore, Ripple obtained an expanded license, strengthening its position for cross-border payment services.
In conclusion, despite a brutal correction that helped cleanse the market, the technological fundamentals and long-term macroeconomic signals remain encouraging. Investors are now watching the Fed’s next interest rate decision, which could set the tone for the end of the year.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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