Bitcoin remained steady on Wednesday, briefly crossing the US$28,000 threshold before retracing its steps. While Bitcoin and Ether experienced minor fluctuations, XRP emerged as a winner due to recent legal developments involving the U.S. Securities and Exchange Commission (SEC). Concerns over the U.S. debt ceiling deal and potential interest rate hikes persist, impacting investor risk appetite.
The world’s leading cryptocurrency showed signs of stability as it dipped 0.35% over the last 24 hours, settling at US$27,666 in Hong Kong. Despite this slight decline, Bitcoin recorded a 1.92% weekly increase, having reached a peak of US$28,044 before encountering resistance at the US$28,000 level.
In the week ending May 26, digital asset investment products witnessed outflows totaling US$39 million, according to a report from European firm CoinShares. Out of these outflows, Bitcoin-related products accounted for nearly a third, reflecting the prevailing bearish sentiment in the crypto market. This consistent trend has resulted in a six-week outflow total of US$272 million, highlighting the ongoing concerns among investors.
Ether, the second-largest cryptocurrency, experienced a marginal 0.13% drop to US$1,895. Nevertheless, it displayed a 2.66% weekly gain, maintaining a trading range around the US$1,900 resistance level since the beginning of the week.
With the exception of XRP, Solana, and Litecoin, most other non-stablecoin cryptocurrencies in the top 10 traded flat to lower over the past 24 hours. XRP surged 6.15%, reaching US$0.5209 and expanding its weekly gains to 12.75%. Markus Thielen, Head of Crypto Research at Matrixport, suggests that XRP’s rally could be linked to the recent settlement between the SEC and a former Coinbase manager accused of insider trading. This resolution potentially bodes well for Ripple, the issuer of XRP, in its own legal dispute with the SEC.
Conversely, Dogecoin experienced a minor decline of 1.03%, falling to US$0.07242. Over the week, it dipped by 0.06%, reflecting the overall mixed performance among cryptocurrencies.
In terms of the overall market, the total market capitalization of cryptocurrencies increased by 0.32% to US$1.16 trillion within 24 hours. Simultaneously, the 24-hour market volume rose by 2.02% to US$30.06 billion, suggesting sustained activity despite the bearish sentiment.
While Bitcoin traded flat and Ether experienced minor fluctuations, XRP emerged as a winner due to positive legal developments. However, the crypto market remains bearish amid concerns over the U.S. debt ceiling deal and potential interest rate hikes.