Crypto Soars, But Regulatory Risks Still Loom
The crypto market performed positively on Friday, fueled by expectations that the Fed will cut interest rates at its upcoming meeting. Recent US economic data, including surging jobless claims and cooling producer price inflation (PPI), reinforced this expectation. Bitcoin rallied around $114,000, while Ethereum benefited from positive sentiment and liquidity flowing into risk assets at $4,500. Altcoins also rallied, particularly in projects demonstrating real adoption and utility.
Institutional interest is growing, with ETFs, governance tokens, and stablecoins expanding their market share. For example, Binance Coin (BNB) reached a new high (around $907) following a strategic partnership between Binance and Franklin Templeton, which designs global digital asset products. Major crypto exchanges and hedge funds are increasingly aggressively incorporating crypto assets into their portfolios, as regulations gradually become clearer and investor demand for crypto-related products increases.
However, the crypto market is not without risks. The upcoming interest rate cut remains uncertain in terms of its magnitude and tone; if the Fed signals a hawkish tone, the dollar could strengthen again, rattling crypto assets. Regulation also remains a crucial factor—in the US and other countries, policy changes or regulatory uncertainty can trigger volatility. Furthermore, while interest in altcoin projects is high, liquidity in some tokens remains thin, making major corrections possible if sentiment worsens.
Source: Newsmaker.id
