Rising inflation slows crypto market recovery – Weekly Crypto Roundup

Bitcoin lingers below $50K as Tezos adds 5% on NFT partnerships

Despite briefly surpassing $50K on Friday’s hot inflation figures, Bitcoin spent most of last week hovering below this psychological milestone.

Meanwhile, market fundamentals continued to improve. Crypto executives testified before Congress on Wednesday, with most participants agreeing on the huge potential of crypto and the need for careful regulation. Visa chose the same day to launch its new crypto advisory unit, and messaging platform WhatsApp announced the testing of crypto payments on Thursday. Finally, the Bitcoin hashrate hit a new all-time high on Friday — marking a full recovery from China’s mining ban.

Against this backdrop, Bitcoin finished the week with 2% losses, while Ethereum dropped 8% to rest above the $4K level. Tezos was one of the only altcoins to escape the malaise, making 5% gains on two new NFT partnerships.

This Week’s Highlights

  • Congress warms to crypto in landmark hearing
  • Tezos rides high on NFT tailwinds

Congress warms to crypto in landmark hearing

Crypto is finding support in the uppermost echelons of global politics. As shown last Wednesday, when executives of six crypto companies testified before the House Financial Services Committee at a hearing on digital assets.

Supporters in the committee included Rep. Patrick McHenry of North Carolina, who warned that overbearing regulation could push financial innovation away from the US, and Rep. Ritchie Torres of New York’s Bronx, who described how crypto can help many of his constituents to send cheaper and faster remittance payments.

Naysayers such as Congressman Brad Sherman were also quick to jump in with negativity, but the overall tone of the hearing was described as “overwhelmingly positive” by crypto lawyer Jake Chervinsky.

Tezos rides high on NFT tailwinds

Blockchain gaming and sustainability have become two of the hottest sectors of the crypto ecosystem, and Tezos is taking full advantage.

The green blockchain’s native token rose 5% last week after French video gaming giant Ubisoft announced the launch of Quartz; a new non-fungible token (NFT) platform that allows players to earn, collect, and trade in-game items such as weapons and vehicles on Tezos.

Adding to the positive momentum, Tezos also announced that it has teamed up with colour matching company Pantone to release a collection of NFTs based on the color of the year — Very Peri, described as a shade of Periwinkle Blue.

Week ahead

After inflation figures came in hot on Friday, the market is waiting to see if the Federal Reserve will respond by cutting stimulus and raising interest rates.

This could be revealed on Wednesday, when chairman Jerome Powell is expected to say whether he will “take the booze from the punchbowl” or let the party in the markets continue.

For Bitcoin, which often trades as a risk-on asset, tighter monetary policy could damage its appeal. Yet according to former hedge fund manager Mike Novogratz, it could also stoke demand for another cryptoasset. He told CNBC last week that while Bitcoin’s appeal rests on the debasement of fiat currency, Ethereum remains promising as a “technology bet”