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(Kitco News) – This week’s topic in the crypto market has been regulation as several key developments, including a new bill being proposed in the Senate and the unveiling of widespread investigations into U.S. crypto exchanges, suggest the actions of the government against crypto has started.
Data from TradingView shows that Bitcoin (BTC) price action has been in a mild downtrend for the past 5 days, after peaking at $24,670 on July 31, ending the week down 6.87% and ended up trading at a price of $22,900 in Friday’s traditional markets.
BTC/USD 1 day chart. Source: TradingView
Despite the negative weekly performance, last month’s uptrend remains intact, according to the daily update from Kitco contributor Jim Wyckoff, who stated, “Bulls are maintaining a six-week-old price uptrend on the daily bar chart and have an overall short-term technical advantage.”
According to Wyckoff, “This suggests that the path of least resistance for prices will remain sideways to upside in the short-term.
Top altcoin Ethereum (ETH) has performed slightly better than Bitcoin in recent days following the introduction of the Digital Commodities Consumer Protection Act of 2022 (DCCPA), which aims to classify BTC and ETH as commodities.
While Bitcoin has long been considered a commodity by regulators, there has been far less consensus on whether Ethereum should be classified as a security or a commodity.
ETH/USD 1-day chart. Source: TradingView
The potential for regulatory clarity surrounding ether contributed to a rally that took the price to $1,680, up 5% on the day.
Altcoins are trending higher
A large majority of altcoins in the top 100 ended the week in positive territory as more investors begin to re-enter the market after bottoming in June and July.
Daily performance of the cryptocurrency market. Source: Coin360
The top performer on the 24-hour chart was Decred (DCR) up 57.5%, followed by a 16.18% rise for NEAR Protocol (NEAR) and two 14% gains for Holo (HOT) and Theta Network (THETA).
The cryptocurrency’s total market cap is now $1.083 trillion, and Bitcoin’s dominance rate is 40.4%.
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