On Thursday, the cryptocurrency market capitalized at $2.7 trillion, with Bitcoin stabilizing at $81K despite volatility. Recent gains in Bitcoin ETFs suggest a shift in investor sentiment, although overall altcoins showed losses, with BNB displaying resilience. Notably, members of Trump’s cabinet revealed Bitcoin holdings and discussions of a potential Binance.US stake acquisition ensued, alongside regulatory concerns.

The global cryptocurrency market experienced a modest increase of 0.26% on Thursday, resulting in an aggregate market capitalization of approximately $2.7 trillion. Bitcoin has stabilized at $81,000, fluctuating 3% from its 24-hour high of $84,476, as investors show keen interest in altcoins following recent developments involving Binance and Ripple in Dubai.

Bitcoin’s price dipped to $79,000 on Thursday, consistent with its week-long trend of remaining below $84,500. The ongoing trade tensions between the United States and its North American neighbors are constricting capital inflows into Bitcoin. After experiencing significant outflows totaling $1.6 billion, Bitcoin ETFs recorded a welcome $13.3 million inflow on Wednesday—the first noted since early March.

Although this inflow indicates some positive investor sentiment, it remains negligible compared to the substantial outflows recorded earlier. Investors are reacting to encouraging U.S. Consumer Price Index (CPI) inflation data; however, potential ongoing impacts from the US-Canada-Mexico trade tensions could limit further activities in Bitcoin ETFs.

On Thursday, the crypto market encountered a downturn of 4.3%, erasing over $106 billion in value following mixed signals from economic data. Bitcoin, Ethereum, and several major altcoins continued to experience losses. Bitcoin fell by 3.1% to $80,536, while Ethereum recorded a decline of 2.9%, dropping to $1,845.72, reflecting a 16.2% decline for the week. Altcoins such as XRP and Cardano saw significant losses as well.

Despite the overall decline in the altcoin market, Binance Coin (BNB) performed relatively well, with a slight gain of 0.4% in the past 24 hours. The positive performance of BNB is attributed to heightened demand for exchange tokens and an influx of investment capital from a Dubai-based firm, GMX, amounting to $2 billion, alongside potential future volatility rooted in regulatory controversies surrounding Binance’s leadership.

In noteworthy crypto news, several members of President Donald Trump’s cabinet have disclosed considerable holdings in Bitcoin, hinting at a possible embrace of cryptocurrency at the governmental level. Health and Human Services Secretary Robert Kennedy Jr. holds the most significant stake, with holdings valued between $1 million and $5 million.

Furthermore, discussions are underway regarding the Trump family’s potential acquisition of a stake in Binance.US as the U.S. exchange seeks to mitigate regulatory scrutiny. Meanwhile, Binance’s founder, Changpeng Zhao, is reportedly pursuing a presidential pardon, creating speculation about future implications for the exchange and its cryptocurrency.

In addition to these developments, Aave Labs has introduced Horizon, aiming to foster institutional adoption of Decentralized Finance (DeFi) by incorporating real-world assets as collateral for stablecoin liquidity. This initiative seeks to bridge traditional and decentralized finance, promoting broader acceptance and usage within financial markets.

In conclusion, the cryptocurrency market is currently navigating through volatility marked by geopolitical tensions and regulatory scrutiny. Bitcoin’s recent performance, albeit stable at $81,000, exhibits underlying concerns about capital inflows, as evidenced by its fluctuating ETF figures. Meanwhile, altcoins exhibit significant losses, with a few exceptions like BNB showing resilience. As the market continues to evolve, developments such as institutional adoption initiatives and significant disclosures from political figures underscore the complex interaction between regulation and cryptocurrency investment.

Original Source: www.fxstreet.com

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