The Stock Market Has Helped Crypto

Slow Recovery for Bitcoin at $27.2K

The market value of cryptocurrencies increased by 0.55% on the previous day to $1.134 trillion. Following the US stock market rise on the federal debt limit announcement, another effort was made to breach past 1.14 trillion late on Wednesday afternoon. It hasn't been able to remain here, however, so far.

At $27.2K, Bitcoin is up 0.7%, continuing the recovery trend that began on the 12th. This recovery is excruciatingly sluggish, however, and there is still local opposition around $27.5K, which has been a support since late March.

Large Bitcoin investors, according to Santiment, are still buying more of the cryptocurrency; in the last five weeks, holdings have grown by about 85,000 BTC ($2.3 billion). Santiment thinks that Bitcoin is now in a stage of consolidation before a fresh spike.

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According to Mike McGlone, senior analyst at Bloomberg Intelligence, if the US defaults, both the stock and cryptocurrency markets would crash. He is optimistic on gold but negative on cryptocurrency.

The Taproot Assets Protocol, version 0.2, was made available by Lightning Labs, the company behind the Lightning Network, to prevent any delays in transaction processing brought on by network congestion.

The UK Parliament has suggested that virtual currency trading be treated like gambling.

Cryptocurrency assets pose a significant danger to consumers and the economy since they might be exploited for fraud and money laundering.

To diversify its reserves, Tether's issuance team has chosen to invest up to 15% of monthly net income in Bitcoin. It already has $1.5 billion invested in Bitcoin. US treasuries with a short maturity remain the main source of USDT's collateral.

Only 31 of the top 60 cryptocurrency firms, according to a Bloomberg poll, have successfully undertaken external financial audits or validated reserves. Many auditors are hesitant to engage with bitcoin businesses or want additional training.