Cryptocurrencies are falling to begin the last week of July after traders took in uncontrolled political developments that happened over the weekend. Right now, everyone is directing their attention to the central bank meeting later this week.
On Monday, Bitcoin fell over 1%, trading at $66,930 from $66,980.00 according to Coin Metrics. Ethereum, however, was slicing out gains, hanging slightly above $3,272.75.
Following a week that saw Bitcoin gain 1% and Ethereum drop 7%, investors are returning to the market. Meanwhile, traders are closely monitoring the policy decisions of the Federal Reserve, Bank of Japan, and Bank of England, all of which are meeting this week. Particular attention is on Federal Reserve Chair Jerome Powell, as investors hope his comments will signal an interest rate cut in September.
During the Bitcoin Conference in Nashville, former President Donald Trump delivered a much-anticipated speech, where he criticized Democratic lawmakers, including Sen. Elizabeth Warren (D-Mass.), SEC Chair Gary Gensler, and the Biden administration, for not providing adequate regulations for the cryptocurrency industry. Trump argued that their actions have hindered the industry’s growth.
He proposed keeping all 210,000 bitcoins currently held by the U.S. government as part of a National Strategic Bitcoin Reserve and received loud applause from the audience when he promised to replace Gensler “on day one” of a potential administration.
Additionally, Wyoming Republican Senator Cynthia Lummis, known for her support of Bitcoin, announced plans to introduce legislation for establishing a national Bitcoin reserve. The proposal includes purchasing 1 million bitcoins over a set period to secure approximately 5% of the total Bitcoin supply.