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(Kitco News) – The theme of this week in the crypto market was regulation as several major developments including a new bill proposed in the Senate and the revelation of extensive investigations into US-based crypto exchanges indicate that the government’s crackdown on crypto has begun.
Data from TradingView shows that Bitcoin (BTC) price action has been on a slight downtrend for the past 5 days after peaking at $24,670 on July 31, ending the week down 6.87% and trading at a price of $22,900 at the end of the traditional markets on Friday.
BTC/USD 1-Day Chart. Source: TradingView
Despite this week’s negative results, the uptrend seen over the past month remains intact as noted in the daily update by Kitco contributor Jim Wyckoff, who stated “Bulls maintain a six-week price uptrend on the daily bar chart and have the overall technical advantage on cards term.”
According to Wyckoff, this suggests that the path of least resistance for prices will remain sideways to higher in the near term.
Top altcoin Ethereum (ETH) slightly outperformed Bitcoin in recent days following the introduction of the Digital Commodities Consumer Protection Act of 2022 (DCCPA) which seeks to classify BTC and ETH as commodities.
While Bitcoin has long been considered a commodity by regulators, there has been far less consensus on whether Ethereum should be classified as a security or a commodity.
ETH/USD 1-Day Chart. Source: TradingView
The potential for regulatory clarity around Ether helped provide a boost that lifted the price to $1,680, marking a 5% gain on the day.
Altcoins are trending higher
A large majority of altcoins in the top 100 managed to end the week on a positive note as more investors begin to reallocate to the market after hitting lows in June and July.
Daily performance in the cryptocurrency market. Source: Coin360
Topping the 24-hour chart was Decred (DCR) with a 57.5% gain, followed by a 16.18% increase for NEAR Protocol (NEAR) and a pair of 14% price gains for Holo (HOT) and Theta Network (THETA).
The total cryptocurrency market cap is now $1.083 trillion, and Bitcoin’s dominance rate is 40.4%.
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