Crypto Week Ahead: Bitcoin Jumps Briefly Following PayPal USD Announcement, Loses Steam Again

Over the past seven days, Bitcoin (BTC) price achieved a high of $30,030.97.

Bitcoin (BTC), the oldest and still the most relevant cryptocurrency in the world, managed to briefly cross the $30,000 hurdle, thanks to fintech giant PayPal introducing its own US dollar-backed stablecoin, dubbed PayPal USD. The move was met with some resistance, most notably from US Representative Maxine Waters. who raised concerns about the action, especially in the midst of the lack of a comprehensive national structure to oversee digital assets. Eventually, BTC prices dipped again, lending a lacklustre outlook to the overall market. The global market cap stood at $1.17 trillion, failing to show any signs of a bull streak. While the overall market sentiment remains neutral, it can be expected that the market might continue trading sideways, unless a major pro-crypto development occurs. 

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (August 7), the overall crypto market cap stood at $1.16 trillion. BTC price stood at around $29,120, ETH price stood at around $1,840.

A week later, the overall market cap managed to jump to $1.17 trillion.

DeFi's total volume stands at $2.33 billion, at 10.13 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $21.43 billion, at 93.26 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at Neutral, at 50 points (out of 100).

BTC dominance, at the time of writing, stood at 48.74 percent.

Over the past seven days, Bitcoin achieved a high of $30,030.97 (on August 9) and a low of $28,746.26 (August 7).

Ethereum, on the other hand, saw a high of $1,868.56 (August 9) and a low of $1,806.36 (August 7).

Crypto Events To Note

Last week, PayPal accomplished a notable milestone as the first major fintech company to incorporate digital currencies into its payment and transfer systems. The outcome was the introduction of a stablecoin pegged to the US dollar, named PayPal USD.

US Representative Maxine Waters, a member of the Democratic Party, expressed significant apprehension regarding the move, particularly in the absence of a comprehensive federal framework for regulating digital assets.

Waters issued a statement emphasising her concerns, citing the formidable stature and expansive influence of PayPal. She underscored the imperative for federal supervision and regulatory measures governing PayPal's stablecoin operations. The purpose behind such oversight, according to Waters, is twofold: to safeguard the interests of consumers and to mitigate potential anxieties pertaining to financial stability.

Furthermore, State banks that are a member of the US Federal Reserve system should obtain a written supervisory nonobjection from the Fed before issuing, holding, or transacting in dollar tokens used to facilitate payments, such as stablecoins, the central bank said in a new supervisory letter.

The Fed also said it is creating a new supervisory program to oversee the activities of the banks it supervises related to cryptocurrency, blockchain technology, and tech-driven nonbank partnerships, with the aim of complementing its existing supervisory process and strengthening the oversight of tech-driven activities.

Additionally, on a positive note, the central bank of Russia has announced its intention to initiate a consumer trial of its digital currency, known as the digital rouble, commencing on August 15. This development follows an extensive testing period in collaboration with financial institutions. The move aligns with Moscow's strategic objective of enhancing the applicability of its digital currency in cross-border transactions.

Similar to numerous nations, Russia has been actively engaged in the development of a central bank digital currency (CBDC), encompassing digital tokens issued by the central bank. This initiative has been underway for the past several years, aimed at modernising the country's financial framework and preemptively addressing the influence of cryptocurrencies like Bitcoin.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, “Bitcoin has been trading below the $30,000 level for the past few days. Over the last week, prices steadily settled between $29,000 and $30,000. Coinbase launched its Base blockchain on the Ethereum network over the weekend. Earlier in the week, PayPal had launched its US-Dollar backed stablecoin pegged PayPal USD. The weekend saw news of an exploit on Libbitcoin, where over $900,000 worth of Bitcoin was stolen from user wallets. Ethereum has traded range-bound between $1,800 and $1,900 over the last week and continues to do so. We might see some volatility this week.”

WazirX Vice President Rajagopal Menon offered his take, “Interest in altcoins continued to grow through last week as was indicated by Shiba Inu’s price fluctuations. Despite macroeconomic factors, Bitcoin’s consolidation phase remained largely unaffected. PayPal’s stablecoin issuance triggered action towards regulations of dollar-backed stablecoins from regulators.”

Subscribe And Follow ABP Live On Telegram: t.me/officialabplive

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.