This Week in Pieces: Ethereum Rebounds, Bitcoin Slips, Russia Bans Crypto Payments

This week in parts. Illustration by Mitchell Preffer for Decrypt

While many cryptocurrencies have fallen over the past seven days, the previous weeks have been even worse.

And although Bitcoin has fallen around 3.5% over the past seven days to $20,831 at the time of this writing, Ethereum has added 11.1% over the same period, now trading at nearly $1,357.

Notable gains this week include Polygon’s 19.46% rise to $0.70, Uniswap’s 11.6% rally to $7.07, and the 10.5% jump in the coin. Monero privacy at $139.39.

Several flagships went the other way: Cardano fell 8% to $0.44, Dogecoin fell 9.6% to $0.06, and the NEAR protocol fell 8% to $3.44 .

In the news

One of the hardest blows to crypto prices this week came from an inflation report Wednesday by the US Bureau of Labor Statistics, which noted that the consumer price index (CPI) rose 9.1% in the 12 months to June. This is the largest 12-month increase in more than 40 years, with the largest price increases seen in food, housing and gasoline.

Last month, in response to inflation readings in May, the Federal Reserve raised interest rates by 0.75%, the biggest hike since 1994. The new CPI figures could prompt the Federal Reserve to raise rates further to increase the cost of borrowing and curb inflation. .

More crypto and equity selling followed the news as investors dumped riskier assets. An hour after the figures were released, Bitcoin had fall more than 4% while Ethereum fell more than 6%. (At one point, the report may have lowered Bitcoin’s price by as much as 6%.)

On Friday, data released by Bloomberg revealed that the Bitcoin-Nasdaq correlation is approaching its the lowest point This year. This means that despite their respective bear markets, Bitcoin has withstood more downward pressure than stocks. This is quite a different story compared to April, when Bitcoin’s 30-day correlation with the Nasdaq was the highest level for over a year.

The relative resilience in Ethereum’s prices at the start of the weekend stems from anticipation of the network’s upcoming transition to proof-of-stake. On Thursday, the network successfully executed a latest tests before Fusionwhich at the time drove Ethereum up almost 13% in 24 hours.

The merger will transform the entire Ethereum network into a proof-of-stake version of itself that runs in parallel with the current Ethereum proof-of-work mainnet. On Friday, Beacon Chain community manager superphiz.eth shared an attempted calendar of the latest updates.

In global politics, the Financial Stability Board (FSB) announcement On Monday, he will present his own proposals to ensure that crypto receives “strong regulation and supervision”. The FSB includes treasury officials and central bankers from the Group of 20 (G-20) economies. He will report to G-20 finance ministers and central bank governors in October, outlining regulatory and supervisory approaches to stablecoins and other crypto assets.

And finally, Russian President Vladimir Putin enacted a law national ban on the use of digital assets for payments, although it is still possible to buy and hold cryptocurrencies.

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