Bitcoin Sees Limited Action Amid Regulatory and Inflation Concerns

Bitcoin's Price Movement

Bitcoin's price saw a slight increase on Friday, rising 0.6% to $61,403. Despite this, the cryptocurrency remained down 2.3% for the week. The broader crypto market experienced subdued activity as regulatory pressures and U.S. inflation concerns weighed on investor sentiment. Bitcoin briefly broke below a key support level but managed to recover above $60,000.

Regulatory Pressures on Crypto

The U.S. Securities and Exchange Commission (SEC) charged Cumberland DRW, a crypto market maker, with acting as an unregistered dealer for over $2 billion in crypto assets. This action highlights ongoing regulatory crackdowns in the crypto industry, with the SEC also targeting exchanges like Kraken and Coinbase for securities law violations. Concerns over potential regulatory measures continue to impact the market.

Legal Challenges from Crypto Exchanges

Bitnomial, a cryptocurrency exchange, filed a lawsuit against the SEC, arguing that the Commodity Futures Trading Commission (CFTC) should have sole jurisdiction over XRP futures. The exchange's action reflects broader tension between crypto entities and regulatory bodies. This lawsuit follows a similar action by Crypto.com, challenging the SEC's regulatory approach.

Impact of Inflation Data

Hotter-than-expected U.S. consumer price index (CPI) data further dented risk appetite, influencing expectations for interest rate cuts by the Federal Reserve. Higher interest rates pose challenges for speculative assets like cryptocurrencies. The U.S. dollar's surge to two-month highs added pressure on crypto valuations. However, some market participants still anticipate a rate cut by the Fed in November.

Altcoin Performance

Major altcoins showed muted performance on Friday, with most set for mild weekly losses. Ether steadied at $2,420.56, while SOL, ADA, and MATIC saw gains between 1% and 3%. XRP experienced a slight decline, and meme token DOGE increased by 1.5%. The overall market sentiment remains cautious amid regulatory and macroeconomic factors.