Bitcoin and ether both started the week in the red, declining 0.6% and 1%, respectively, according to TradingView. The price of the biggest cryptocurrency by market capitalization fell to $25,785 at 2:07 p.m. on Monday in New York, while ether declined to $1,735.
Hernán Yellati, Head of Global Macro Research at crypto research firm CTF Capital, said a volatile week was ahead, with no clear direction in the near term.
While both bitcoin and ether held up fairly well after the U.S. Securities and Exchange Commission sued crypto exchanges Coinbase and Binance last week, he noted that several alt coins suffered sharp losses after the regulator said they qualified as securities.
SEC crypto saga continues
“The saga between the SEC vs. crypto has intensified as market participants and lawmakers are criticizing SEC Head Gensler of regulating by enforcement and risking the US as a technological and innovation hub,” he wrote Monday in an emailed note. “Meanwhile, other jurisdictions like Hong Kong are inviting US based companies to apply for license and operate out of their jurisdiction.”
Yellati said that markets will be watching May inflation data due to hit tomorrow and then a Federal Research interest rate decision scheduled for Wednesday.
“We expect a pause in the hiking cycle, leaving the door open for data dependent moves in the future,” he wrote. “The CPI tomorrow will be a key piece of the puzzle going into the FOMC decision the next day.”