The cryptocurrency market is showing weakness Monday morning, led by decreases in the prices of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
The Biden Administration signaled support for further crypto enforcement on Friday in a series of published reports that follow an executive order U.S. President Joe Biden signed this year on responsible development of digital assets. The reports are pushing regulators to outline risks including the potential for crypto to be used for money laundering or fraud.
Expectations of continued Fed actions to curb inflation could also be weighing on broader risk assets. The latest CPI inflation data could act as a confirmation of recent indicators and push the Fed toward another 0.75% rate hike in its upcoming meeting. Last week’s CPI print is the last major data release the Fed will have before making its decision on rates, which is due on Tuesday.
Ethereum also transitioned from a proof-of-work model to proof-of-stake last week in its highly anticipated merge, which could be adding to volatility in the crypto markets.
See Also: Bitcoin, Ethereum, Dogecoin Plunged Last Week But This Coin Bucked The Trend Decisively, Gaining Almost 13%
BTC, ETH Price Action: At time of publication, Bitcoin was down 4.32% over a 24-hour period at $19,067 and Ethereum was down 6.85% over a 24-hour period at $1,336.
Photo: Miloslav HamÅ™ík from Pixabay.
