Crypto's Big Players Take a Pause: What's Going On?

The crypto world experienced a quiet Friday, with Bitcoin and Ethereum taking a breather after notable gains earlier in the week.

Bitcoin and Ethereum Performance

• Bitcoin reached a high of $94,600 on Wednesday and was trading around $95,300, up 4.6% over the week.
• Ethereum rose 5.9% to $3,250.

Trading Volumes Plummet

• Bitcoin's trading volume dropped 27% to $65 billion.
• Ethereum's volume fell 32% to $54 billion.
• Other coins like Solana, XRP, and Dogecoin followed the same trend.

Regulatory Tensions and Market Sentiment

• Coinbase, a major crypto exchange, withdrew support for a bill aimed at regulating crypto markets.
• The move came after weeks of lobbying and tension between crypto firms and the SEC.
• Brian Armstrong, Coinbase's CEO, remained optimistic, stating the bill could still pass with strong bipartisan support.

SEC Under Scrutiny

• Some critics argue the SEC is not treating crypto firms fairly.
• The CLARITY Act, a bill intended to regulate crypto, was delayed by the Senate Banking Committee, dampening market sentiment.

External Factors Influencing the Market

• Protests in Iran and President Trump's pressure on the Federal Reserve may have played a role.
• Fed Chair Jerome Powell warned that the White House might be undermining the central bank's independence.
• While stocks took a hit, crypto and precious metals performed well.

Bitcoin ETFs See Strong Inflows

• Since Monday, Bitcoin ETFs have attracted $1.8 billion in inflows over four days.
• However, most activity is driven by institutional investors, with retail investors staying on the sidelines.

Conclusion

The current rally appears to be more of an institutional and ETF-driven story, with retail investors yet to join in.