Over the past week, the cryptocurrency market has experienced bullish and bearish price movements. The week started with the cryptocurrency market decline, and the downward momentum increased after the release of the latest Consumer Price Index. However, the price has increased since yesterday, possibly because it had dropped to a discounted level earlier.
On Wednesday Bitcoin reached the lowest level since Jun. 3. The price movement has not seen the same level of declines that we saw in June; the cryptocurrency market is neither seeing any necessary strong indications of bullish price action.
BTC/USD seems to be struggling to gain momentum above $21,000 and below $19,000. Today, it is seeing a much lower level of volatility than the previous days. Currently, the price is 1.06% up but 0.37% down since the start of the week.
The cryptocurrency market is currently under pressure from the macroeconomic picture, specifically in the US, and significant declines over the past few months. The decline in price and the generally poor market performance have prompted certain firms to limit short trade and withdrawals. Some companies have even closed their doors.
This has piled on further pressure as traders are cautious of the poor performance and the sustainability. Last week, the cryptocurrency broker Voyager Digital, which serves about 100,000 digital currency holders, filed for bankruptcy. Celsius, which also has about 100,000 traders, filed for bankruptcy earlier this week.
The macroeconomic pressure is mainly caused by the monetary policy and the generally low-risk appetite within the market. A low-risk appetite is known to hit the cryptocurrency market hard due to its volatility levels.
Many traders follow the court case between Ripple and SEC. Ripple has achieved important positive results in litigation with the US Securities and Exchange Commission (SEC). The court rejected the department's demand to invalidate the comments of the former head of this regulator, Mr. Hinman.
The court stated that the SEC does not consider Bitcoin and Ethereum as securities, and Ripple lawyers insist that this was the official position of the regulator. In other words, this means that Ripple cannot be recognized as security since it does not differ from either Bitcoin or Ethereum. If this can be proved to the court, Ripple will probably win the dispute with the American regulator.
Traders will continue to monitor the lawsuit and see if future developments change. Current reports show that the court is not happy with what has been provided by SEC so far. Of course, investors will also continue to monitor the macroeconomic developments and specific the risk appetite and confidence within the market. Regarding the technical side of the story, traders will remain focused on the range between $19,000 to $21,000, which was previously mentioned.