Most cryptocurrencies are returning to gains today, led by Bitcoin, which rose by 1% at 7:30 a.m. GMT, within the sideways path that the markets have been following since the weekend.
The quiet trading in the cryptocurrency market comes after recovering from a violent correction it suffered last week. It also comes amid talk of possible enforcement moves by the Securities and Exchange Commission (SEC) against Robinhood’s crypto arm.
This was in light of the recent disclosure issued by Robinhood, which spoke of the receipt of a Wells notices, which indicates that the authority is close to launching an investigation and possible enforcement measures against the company.
Therefore, the markets still need more clarity of vision about the future path, especially after the violent fluctuations that we witnessed and the return of fears about the expanding scope of regulatory measures that the SEC is continuously taking against crypto companies.
While the markets seem to have underestimated the importance of this measure that the authority may take, with Robinhood officials saying that the company had worked at length with the authority previously regarding its offers of cryptocurrencies. In addition, this step by the SEC raised criticism about its ability to follow up on all the cases and measures that are pursued by companies operating in the sector, which causes a huge amount of time and money to be consumed.
The authority had also delayed a decision to launch the Invesco Galaxy spot Ethereum ETF, while the SEC is expected to reject several other applications this month. However, it seems that the markets are already preparing for such steps, in light of the recent measures taken by the Authority in an apparent attempt to classify Ethereum as securities.
Despite all this, it seems that investors in the US investors are still optimistic about the future of crypto, with positive flows recorded for the second day in a row yesterday, which also included the Grayscale Bitcoin Trust (GBTC). While the eleven spot ETFs combined recorded inflows of more than $217 million yesterday, according to SoSoValue.
The cryptocurrency market may also benefit with the continuation of the high sentiment that we saw in the US stock market after the noticeable gains during the previous two sessions in light of optimism about the possibility of actually lowering the interest rate by the Federal Reserve at some point that may be late this year.
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