Cryptos Reclaim $1 Trillion Level

Cryptocurrencies gained around 0.75 percent overnight to recoup losses and rise above the psychological $1 trillion level in market capitalization. Cryptocurrency prices had fallen a day earlier amidst a fresh phase of regulatory crackdown in the U.S. on the crypto industry. Paxos, the issuer of the Binance USD (BUSD) stablecoin was asked by regulators to stop minting of the stablecoin.

Sentiment also remains strong ahead of the keenly watched CPI data from the U.S. Year-on-year Inflation in the month of January is seen falling to 6.2 percent, versus 6.5 percent in the previous month. Core inflation, excluding the volatile food and energy prices is also expected to fall to 5.5 percent from 5.7 percent in the month of December. The release however assumes significance amidst a change in the methodology used for computing inflation.

The rebound in crypto prices also coincided with the rally in stock markets as well as the Dollar’s retreat. The Dollar’s retreat caused the Dollar Index (DXY), a measure of the Dollar’s strength against a basket of 6 currencies to drop 0.40 percent in the past 24 hours to 102.92.

Despite the overnight rebound, lingering concerns do exist on forthcoming regulatory actions that could impact the crypto industry. Bloomberg reported earlier that a proposal is being pursued by the SEC that could impact the ability of crypto firms to act as a qualified custodian.

Market capitalization of BinanceUSD (BUSD) is currently at $15.6 billion versus $16.2 billion a week earlier, amidst the recent regulatory action on the stablecoin. Despite the debate over whether a stablecoin can be a security, the dollar-pegged stablecoin retained its peg to the dollar, trading between $1.00 and $0.9989 in the past 24 hours.

The recent action has also taken its toll on 4th ranked BNB (BNB) which has shed more than 10 percent in the past week. Meanwhile, Pomerantz, a corporate securities and antitrust law firm has announced that it has commenced an investigation into Paxos Trust Co., the issuers of the Binance USD (BUSD) stablecoin on behalf of customers.

Bitcoin (BTC) gained 0.94 percent in the past 24 hours and is currently changing hands at $21,855.14. The lead cryptocurrency has shed 5 percent in the past week amidst an unprecedented regulatory crackdown but is still holding on to gains of 31 percent on a year-to-date basis.

Ethereum too rebounded 1.9 percent overnight and is currently trading at $1,513.91. Ethereum too suffered losses of around 8 percent in the past week but has managed to hold on to gains of 26 percent made in 2023.

74th ranked GMX(GMX) topped overnight gains with a close to 14-percent overnight rally. 82nd ranked SingularityNET (AGIX) followed with overnight gains of close to 10 percent.

91st ranked BinaryX (BNX) was the biggest laggard with a 10.6 percent overnight decline. Despite the decline, BNX, a BEP-20 token on the Binance Smart Chain tops the weekly gainers list among the top 100 cryptocurrencies with a gain of 49 percent. Hedera (HBAR), a scalable smart contract asset follows with weekly gains of more than 27 percent.

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