Bitcoin holds firm amid market turbulence, spurred by new crypto law
Investing.com | Editor Hari G
Published Oct 17, 2023 08:26AM ET
Bitcoin (BTC) has held steady above $28,400, despite considerable market volatility sparked by false reports of BlackRock (NYSE:BLK)'s spot bitcoin ETF approval. This stability comes on the back of a transformative U.S. crypto law signed by California Governor Gavin Newsom on Tuesday, which is expected to fuel the growth of crypto businesses and the broader industry from July 2025.
The new legislation has helped Bitcoin register a two-day gain of 2.1%, leading to an average return of 1.24% in the broader crypto market over the past 24 hours. Other major cryptocurrencies such as Ether (ETH) and BNB Chain's BNB tokens have remained static during this period.
Uniswap (UNI) tokens, however, experienced a 3% dip following the introduction of a 0.15% swap fee per trade. The move sparked mixed reactions among investors and traders.
Analysts from Bitfinex highlighted a strong "holding sentiment" among Bitcoin holders, with short-term holders accounting for less than 20% of the circulating supply. Despite this optimism, they warned of potential market risks due to low spot trading volumes and the increasing use of leverage among traders.
Solo Ceesay of Calaxy emphasized the attractive risk vs reward ratio of crypto investing compared to other assets trading near all-time highs. This sentiment underscores the sustained appeal of cryptocurrency investments despite recent market turbulence.
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