Cryptocurrency Market Update
Bitcoin Price Recovery Amid Geopolitical Tensions
Bitcoin’s price rose on Monday, bouncing back from steep losses over the weekend as risk appetite took a hit following an Iranian strike against Israel. The world’s largest cryptocurrency climbed 3.2% in the past 24 hours to $66,523.2 after dropping to $61,000 recently.
Bitcoin Faces Pressure from Iran-Israel Conflict
Bitcoin faced pressure due to worsening risk appetite after Iran conducted a drone and missile strike on Israel. Traders turned to safe-haven assets like the dollar and gold, pushing the dollar to five-month highs. This strength in the dollar added pressure on Bitcoin, which typically performs well in a high-risk appetite environment.
Despite the geopolitical tensions, Bitcoin found some relief as signs emerged that the conflict might not escalate further. Iran indicated the end of its strike, and Israeli ministers considered refraining from immediate retaliation.
However, the rising tensions impacted inflows in Bitcoin ETFs, slowing their pace in recent times.
Altcoins Recover, But Face Rate Jitters
Other major cryptocurrencies also saw a recovery on Monday after a weekend slump. The second-largest crypto rose 3.7% to $3,187.78, while [other altcoins] added 7% and 3%, respectively. However, the potential for higher U.S. interest rates following recent inflation data and Federal Reserve signals hindered significant gains in the crypto market.
New Crypto Legislation in the U.K. by Mid-2023
Economic Secretary Bin Afolami announced that the U.K. government plans to introduce legislation covering stablecoins and various crypto activities by mid-2023. This decision comes after the 2023 financial markets bill laid the groundwork for regulating cryptocurrencies as financial activities. The Financial Conduct Authority and the Bank of England will play key roles in overseeing this regulatory framework.
