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Cryptocurrencies in a downward trend

INVESTINGCryptocurrencies in a downward trend

Last week, Bitcoin failed to regain momentum and declined to about $40,000. The value of cryptocurrencies fell by almost 6 percent week-over-week as investors look for more approvals of Bitcoin ETFs – probably no longer believing it will occur as yet in 2023.

Bitcoin started last week above $43,000 but fell within a week and is currently listed on eToro just below $40,700.

Meanwhile, ETC declined by over 7 percent last week, starting last Monday above $2300, then dropping within a week and currently listed at about $2150.

The Upcoming Week

In the week preceding Christmas, trading on the investment market and therefore, the cryptocurrency market will likely weaken in volume as investors take a break ahead of the holidays.

There are few current events that might impact global cryptocurrency markets. Japan’s last monetary policy decision will be made on Tuesday, while the UK’s Office for National Statistics (ONS) will publish inflation data on Wednesday.

A higher-than-expected inflation reading might cool British markets due to expectations of bank interest rates, but it’s largely a side effect compared to the entire cryptocurrency market.

Bitcoin Fees At Highest Levels in 20 Months

Bitcoin transaction fees are at their highest in 20 months, with the average transaction costing about $40 according to BitInfoCharts data. The recent surge in transaction costs comes from a new push from Bitcoin Ordinals inscription. Fees are at their highest level since April 2021.

BlackRock’s Bitcoin Spot ETF Opens Doors for Wall Street

Wall Street banks could still play a role in BlackRock’s Bitcoin spot ETF, despite restrictions on them for holding cryptocurrencies. BlackRock has enhanced its mechanics meaning authorized participants can create new shares in funds for cash, not exclusively for cryptocurrencies. This would open the doors to those banks that can’t hold cryptocurrencies but can act as authorized participants, thereby gaining exposure.

UK Lawmakers Accused of Lack of Knowledge

The industry association CryptoUK has suggested that UK lawmakers lack knowledge about DeFi and blockchain, with only 5 percent of members of parliament openly discussing these topics in public debate. In its 2023 analysis, the association showed that only 37 MPs discussed cryptocurrencies, despite Prime Minister Rishi Sunak’s desire to make the UK a cryptocurrency hub.

Simon Peters, Cryptocurrency Analyst at eToro.

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