On the website btccoinzone, While investors continued to watch.. inflation data for further clues about interest rates, the BTC rate fell slightly on Tuesday, staying within the boundaries drawn out in the last two months. However, investment products got their first inflows in five weeks, but with minimal price action due to a renewed flow of capital into the cryptocurrencies. Thus, it was concluded that there was no significant change in the market.
Crypto Investment Products See Limited Growth
Data pointing out that crypto investment products such as spot Bitcoin prices (which plummeted below exchange-traded funds) during their first week of growth in five weeks had very little support for the world’s largest cryptocurrency. In the week ending May 12, cryptocurrency products received $130 million, according to CoinShares, digital assets manager data. The United States has got the bulk of this funding. Nevertheless, some of these investors in Hong Kong have invested in Spot Bitcoin exchange-traded funds (ETFs).
Even though the capital flows have improved, the trading volume in cryptocurrency investment products remained dismal. It decreased to a shallow level compared to March, when the Bitcoin price went below its all-time high. Rather than any price action due to the combined effect of interest rate worries, regulatory uncertainties quitting ETF, and low trading range between $60,000-$70,000 for the last 2 months, the largest cryptocurrency overestimated to $64,000-$74,000. On the other hand, the long-awaited token-halving event became blah.
Crypto Markets Rally with Memecoins Leading the Gains
Bitcoin was not the only cryptocurrency market that gained on Tuesday; other markets also experienced a jump. Ethereum has been exceptionally profitable due to the first rollback, which made it unstable at $2,906.00, a drop of 1.9%. Solana has been on 0.4% to X.R.P.. and the latter is stagnant. Memecoins reacted positively to meme stocks’ rise in Wall Street as AMC Entertainment (NYSE: A.M.C..) and GameStop (NYSE: G.M.E.) were the leaders in the meme stock market. AMC had a significant percentage increase; for instance, AMC is among the most popular meme stocks. A more than 5% rise in the Darren Dogecoin and PEPE, a more recent and relatively new meme coin, has experienced a growth rate of over 20%.
However, considering the week’s vital statistics, cryptocurrency prices did not rise very high. The data regarding the producer price index will be shown on Tuesday when we receive it. The consumer price index reports on Wednesday. Because the rates are expected to remain high for a very long period, the figures will significantly impact the future guidance of U.S. rates. In this case, both are anticipated. The possibility is high as crypto markets usually prosper in low-interest and high-liquidity environments.
UK Advances Crypto Regulations Before Election
During the interview with CoinDesk, the industry participants said that an approaching election cannot deter the regulation of the crypto sector. Again, even though no election date has been called, it is highly probable that it will occur later this year. From 2010 onward, the Conservatives made various efforts to make the UK a crypto hub. They introduced a bill to allow the FCA to regulate the Bitcoin business as a financial activity.
The intergovernmental body is believed to pass regulations similar to stablecoin laws and t-poling (staking) before the next elections. The director of the policy Innovate Finance, Adam Jackson, pointed out that the country needs secondary legislation. The FCA is to be legally charged with crypto regulation, including stablecoins.
“That’s what the government said they would do,” Jackson told CoinDesk. “There is no other reason we have heard why it would be impossible. ence, ceteris paribus. They will have those powers by national election time,” Jackson told the media outlet.
FAQs
What was the recent investment inflow for cryptocurrency products?
Cryptocurrency products received $130 million in the week ending May 12, with the majority coming from the United States.
How did memecoins react to recent market changes?
Memecoins like Dogecoin and PEPE saw gains, influenced by the rise of meme stocks like AMC and GameStop on Wall Street.
What role does the UK government play in crypto regulation?
The UK government is pushing crypto regulations to empower the FCA to oversee the sector, aiming for legislation before the upcoming election.
What are expected influences on the crypto market in the near future?
Upcoming producer and consumer price index data will likely impact U.S. interest rates, which could affect crypto market performance.
