Why are Bitcoin and Ethereum falling? Expert answers

Source: PortaldoBitcoin Original Title: Why are Bitcoin and Ethereum Falling? Expert Responds Original Link: The cryptocurrency market is fluctuating this Friday (16), with trading volumes declining as Bitcoin and Ethereum retreat after a positive start to the week.

After Bitcoin surged to US$ 97,000 on Thursday, the leading digital asset by market value drops back to the US$ 94,705 range this Friday, down 2% on the day, contrasting with a 3.5% gain for the week, according to CoinGecko. Ethereum also falls 1.5% this afternoon, to US$ 3,272.

Trading volumes for Bitcoin and Ethereum decreased by 27% and 32%, respectively, to US$ 65 billion and US$ 54 billion, according to CoinGlass. The trend extended to other assets such as Solana, XRP, and Dogecoin.

The decline occurs after a certain trading platform withdrew support for a bill on the structure of the cryptocurrency market in the US, following weeks of lobbying in the US Congress, and tensions surfaced among lawmakers regarding the treatment of the cryptocurrency industry by the US Securities and Exchange Commission.

“I remain quite optimistic that this bill will be passed in a very bipartisan and solid manner,” said the platform’s CEO during a media appearance this Friday. “I really said I thought there were these issues, but left it to the Senate to define the exact procedure moving forward.”

On Thursday, several commentators criticized the Securities and Exchange Commission in a letter addressed to Chairman Paul Atkins.

“There was a lot of optimism that we would see approval later this year,” said Carlos Guzman, research analyst at a cryptocurrency trading firm, referring to the CLARITY Act. “The rally seemed to coincide with [the launch of a new version of the bill].”

Although efforts to advance the bill were delayed by the Senate Banking Committee on Wednesday, Guzman pointed to the possible impact of other factors, such as geopolitical tensions in the Middle East caused by protests in Iran and developments in the pressure campaign against the Federal Reserve.

Federal Reserve Chairman Jerome Powell issued a warning about attempts by the White House to undermine the independence of the central bank, following the release of subpoenas from the Department of Justice related to his testimony on a billion-dollar reform at the Fed headquarters. Guzman highlighted the notable drop in stocks while cryptocurrencies and precious metals advanced.

Since Monday, spot Bitcoin ETF funds have been recording consistent inflows, totaling US$ 1.8 billion over four days, according to CoinGlass.

Jasper De Maere, a trading firm strategist, wrote in a note on Thursday that the dynamics indicate that “participation remains restricted,” with most of the movement recently driven by Wall Street.

“Retail has been virtually absent, with activity remaining subdued even as prices rise,” he wrote. This may be changing now that Bitcoin is back in the spotlight, but this rally has mainly been a story of institutional investors and ETFs.