Bitcoin and ether are on the defensive again

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Bitcoin and ether are on the defensive again

This week, if crypto is an alternative to stock market volatility, it didn't show up. This week, stocks struggled with a rise in Treasuries yields to their highest levels since 2007, which initial pushed the Dow Jones Industrial Average into negative territory for the year. Crypto, a safe haven during uncertainty in the global financial market, didn't exactly live up to that narrative. Bitcoin is on pace to post a 3% gain for the week, but it hasn't held on to its breakouts. Even after ether futures ETFs started trading, ether is headed for a losing week, which was expected to be a positive catalyst for the cryptocurrency and digital assets. The weekly performance of both currencies gives a fresh peek into the crypto market's struggle this year, where potential catalysts take price action only so far before the low volume and liquidity regain control. Investors have to thank the ongoing regulatory uncertainty for this decision. s weak liquidity on both sides of orderbooks means it's easy to move markets up on speculation, but there's also a lack of support to the downside so prices often retreat quickly. This week, the big story for crypto markets was the first week of trading for several ether futures ETFs, which was underwhelming with less than $2 million in trading volume on the first day across six different ETH ETFs, Ryder said. This represents about 0.2% of the trading volume of bitcoin futures ETFs on their first trading day, he said. s would bring a wave of new capital to crypto as the next catalyst to lift markets, Ryder said. Bitcoin climbed back to the $28,000 level for the first time since August but gave up those gains in the same day. The renowned cryptocurrency, which is in its tight range of $25,000 to $30,000, has struggled to break out of both the ups and downs this year. Cryptocurrencies like Bitcoin and ether are widely thought to be highly unstable and highly volatile assets that frequently move in tandem with the broader market. However, many crypto investors take a longer view of them and may still consider them safe havens. While one group may be worried about their prices this year, the other sees them as resilience in the face of U.S. regulatory uncertainty and rising rates. 's a good place to have an allocation,' said David Wells, CEO of Enclave Markets. Refocused on short-term price movements, it won't look like a safe haven asset, primarily because this is still a relatively new and smaller asset class compared to traditional assets. this year has been a difficult year.