Cryptocurrency Market Update: Uniswap Declines, Bitcoin and Ethereum Volatility Predicted
On March 12, Uniswap dropped to an 8-month low amid selling pressures, while Bitcoin and Ethereum experienced notable price action linked to upcoming US inflation data. Ethereum gained slightly after a favorable SEC filing for an ETF, whereas the House passed measures affecting DeFi regulations. The market shows potential for volatility as significant events unfold.
On March 12, cryptocurrencies experienced notable movements, particularly Uniswap, Bitcoin, and Ethereum. Uniswap (UNI) reached an eight-month low, trading at $5.84 after a decline of nearly 9% within two days. This trend was driven by a significant deposit of 2.25 million UNI tokens into the Kraken exchange, indicating traders may be offloading their holdings.
Meanwhile, Bitcoin (BTC) hovered around $82,700, having rebounded by 5.52% the previous day. In contrast, Ethereum (ETH) showed signs of weakness, while Ripple (XRP) demonstrated a slight recovery amidst the anticipation of volatility surrounding the release of the US Consumer Price Index (CPI) data.
Ethereum’s price forecast includes a target of $2,200 resistance as it gained 3% following Cboe BZX’s filing to the Securities and Exchange Commission (SEC) for Fidelity’s Ethereum ETF. This move is aimed at allowing staking within the ETF, potentially paving the way for further interest in ETH.
The House of Representatives voted to repeal the IRS DeFi broker rule, which imposed additional data collection requirements on decentralized finance platforms. This decision may enhance the operational landscape for DeFi, fostering growth in the sector.
Finally, Bitcoin faced ongoing challenges, with a price drop of over 5% this week and increased volatility resulting in liquidations exceeding $1.67 billion, coinciding with a White House Crypto Summit. This event raises questions about the potential impact of these deliberations on Bitcoin’s recovery.
Overall, the cryptocurrency market remains dynamic, with influences from regulatory developments and market speculation. Investors are encouraged to conduct thorough research before engaging in trades, given the inherent risks within crypto investments.
The cryptocurrency market remains in a state of flux, with Uniswap experiencing significant losses, while Bitcoin and Ethereum navigate anticipated volatility due to major economic indicators and regulatory developments. Market participants should remain vigilant and conduct comprehensive research before making trading decisions. The recent actions from legislative bodies and prospective regulatory frameworks will likely continue to shape the cryptocurrency landscape in the near future.
Original Source: www.fxstreet.com
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