This Week in Crypto – BTC and ETH Remain Steady After Fed’s Rate Hike
After growing massively the previous weekend, the two leading crypto assets, Bitcoin and Ethereum, did not see any significant price increases this week. BTC is up 0.6% over the last seven days and trades at $28,946. The coin has recorded a 77.1% growth since the start of the year.
On the other hand, Ethereum has posted a 7-day price increase of 0.9% to trade at $1,886 as of this writing. It has shed 66.4% of its value since January.
TRON is the only coin among the top twenty that has grown by at least 3%. But most of the tokens under this category have not witnessed any major price changes.
This week’s lack of growth can be attributed to the Federal Reserve’s decision to increase interest rates by 25 basis points in an effort to curb inflation. This is the tenth hike since last March.
Every time these interest rate hikes are announced, investors shift their focus away from highly risky assets, such as crypto.
US Could Soon Impose Crypto Mining Tax
In other news, the White House published a report on Tuesday justifying the proposed Digital Asset Mining Energy tax, which is expected to be imposed on both proof-of-stake and proof-of-work miners. If the proposal is approved, the new tax rule will be implemented starting in 2024.
Meanwhile, crypto players are already disapproving of the tax proposal, with some arguing that the US government is labeling all crypto mining activities as energy consumptive without considering if there are miners using renewably-sourced energy.
On Tuesday, Democrat party member Robert Kennedy Jr. took to Twitter to accuse the US regulators of playing a huge role in the downfall of crypto-friendly banks such as Signature and Silvergate. He said the recent crackdown on crypto firms is an attempt to discourage blockchain innovations in the country.
Just three weeks ago, Kennedy called out the Federal Reserve for what appeared to be the issuance of a Central Bank Digital Currency (CBDC). But it turned out the politician had misread an article regarding ‘FedNow,’ the central bank’s new digital payment system, which does not involve any CBDC.
DeSantis Continues to Oppose CBDCs
On Wednesday, Florida Governor Ron DeSantis, who is also a big critic of CBDCs, spoke at a press conference where he reiterated his last month’s statement that a Federal Reserve’s CBDC would be violating the financial privacy of Americans. He also opposed the Digital Asset Mining Energy tax mentioned earlier.
On Friday, popular auction house SotheBy’s launched an online NFT marketplace, allowing collectors to sell and purchase art pieces.
Finally, crypto users in Argentina are worried about an impending crackdown after the nation’s central bank directed payment platforms not to offer their customers crypto trading services.
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