Cryptocurrency week: Ethereum (ETH) on the rise, bitcoin (BTC) stable and polygon (MATIC) on the way to the moon
Although many cryptocurrencies have fallen in the last seven days, the situation was a little worse in the previous weeks.
And while bitcoin (BTC) is up just 0.64% over the past seven days and is trading at $21,204 at this point, ether (ETH) is up 14.8% over the same period, now priced at $1,348.
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Other impressive increases for the week include polygon (MATIC) , which is up 37% and is priced at $0.77; uniswap (UNI) , which is up nearly 13% and is priced at $7.03; and the nearly 10% jump of the monero privacy coin (XMR) to $136.14.
Several major projects went in the opposite direction: cardano (ADA) plunged 3.7% to $0.44 and dogecoin (DOGE) dropped 5.8% to $0.06.
News that impacted the crypto sector
One of the worst shocks to the price of cryptocurrencies this week came from a report on inflation , published Wednesday (13) by the US Bureau of Labor Statistics ( or BLS), reporting that the US Consumer Price Index (or CPI) rose 9.1% over the 12 months to June.
It was the biggest increase in 40 years as higher prices were recorded in the food, housing and gasoline sectors.
In June, in response to May’s inflation analyses, the Federal Reserve had raised interest rates by 0.75% — the most drastic increase since 1994. The new CPI percentage could cause the central bank to raise interest rates further fees to increase the cost of borrowing and deal with inflation.
There were a lot of crypto and stock sell-offs after the news as investors got rid of their risky assets. Within an hour of the percentage being released, bitcoin had fallen by more than 4% while ether was down by more than 6% — at one point, the report may have been responsible for a drop of up to 6% in bitcoin.
On Friday (15), data released by Bloomberg shows that the correlation between bitcoin and the Nasdaq 100 index was reaching its lowest level this year . This means that despite their respective bear markets, bitcoin has withstood downward pressure more than equities.
It’s a completely different scenario than in April, when the 30-day correlation between bitcoin and Nasdaq had reached its highest level in a year.
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The relative resilience of the ether price this weekend stems from anticipation for the network’s future upgrade to a proof of stake (or PoS) mechanism . On Thursday (14), the network was successful in carrying out the last tests before the Merger, which, at the moment, caused the price of ether to rise almost 13% in less than 24 hours.
The Merger will see the entire Ethereum network run a PoS version that is being operated in parallel with the current Ethereum mainnet and proof of work (or PoW) . On Friday (15), Beacon Chain’s community manager, superphiz.eth, shared a possible timeline for the final updates.
On the global political front, the Financial Stability Committee (or FSB) announced on Monday that it will come up with its own proposals to ensure crypto has “robust regulations and standards.” The FSB is made up of treasurers and central bankers from the economies that form the Group of 20 (or G20 ).
In October, it intends to present a report to the G20 finance ministers and central bank governors, highlighting regulatory and supervisory approaches to stablecoins and other cryptocurrencies.
Lastly, Russian President Vladimir Putin signed a nationwide ban on the use of digital assets in payments , despite still allowing the purchase and storage of cryptocurrencies.