Bitcoin And Other Cryptos Rise In Weekend Trading

Bitcoin and other Cryptos Rise in Weekend Trading

The slightly positive performance of Bitcoin and other major cryptocurrencies over the weekend has given investors a bit of hope that the market may be stabilizing. However, there is still a great deal of uncertainty about the future direction of the global economy, which is keeping many investors on the edge.

One area that is facing increasing scrutiny at the moment is the stablecoin market. This comes as no surprise given that stablecoins are designed to provide stability in an otherwise volatile market. However, recent events have called into question whether or not some stablecoins are actually able to live up to their promises.

Bitcoin has been in a bit of a slump recently, trading just above $30,000 after hovering around that same threshold for most of the past month. While some investors are anxious about inflation and the global economy, others believe that Bitcoin will rebound soon enough. In any case, it is important to keep an eye on the world’s largest cryptocurrency by market capitalization.

The sideways trading may be frustrating for investors who were used to the digital currency’s record-setting run in 2020 when it more than quadrupled in value. The increases this year have been more muted, partly because many corporations and wealthy individuals have already bought in and partly because of concerns that wider adoption of bitcoin could lead to heavier regulations.

Still, some investors remain optimistic about bitcoin’s long-term prospects. They argue that the cryptocurrency is still in its early stages of development and that it has a lot of room to grow as more people become interested in using it. They also point out that bitcoin has held up relatively well during periods of market turmoil and that it could serve as a valuable hedge against inflation if central banks around the world continue to print money at high rates.

ETH has been one of the more stable cryptos over the last few weeks, trading in a range of just under $2,000. The second-largest crypto by market cap has seen some slight ups and downs but nothing too dramatic. Other major cryptos have been mostly flat, with a few small winners like LINK and ADA. Trading has been light as usual on weekends.

A Tough Week for Stablecoins in South Korea & Japan.

Stablecoins have come under increased scrutiny in recent weeks in South Korea and Japan, after the collapse of the TerraUSD stablecoin (UST) token in early May. While stablecoins are supposed to be lower risk than other digital assets, the extra attention has been challenging for protocols to peg a digital asset to a fiat currency, commodity or a mathematical formula based on some group of assets.

The new law in Japan requires that all stablecoin issuers register with the country’s financial regulator, the Financial Services Agency (FSA), and comply with its anti-money laundering regulations. The FSA will also have the power to halt stablecoin projects that it deems to be risky.

In South Korea, meanwhile, the government is reportedly preparing to ban all stablecoins, including those pegged to fiat currencies like the US dollar. The country’s central bank has said that it is “impossible” to guarantee the stability of any digital asset pegged to a real-world asset.

These developments highlight the challenges facing stablecoins as they try to gain mainstream adoption. While their underlying technology is sound, there are still many regulatory hurdles to overcome before they can be widely used.

The report in the Korea Times noted that the South Korean financial authorities would be introducing measures to hold crypto exchanges to greater scrutiny. This is following the implosion of UST and the LUNA token behind it. The National Assembly emergency seminar discussed the possible ramifications of this event and how it may have impacted about 280,000 South Koreans. They also considered the role of exchanges and law enforcement moving forward.

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Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.

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