A Major Stablecoin Issuer Aims to Go Public. The Crypto Crash Will Make It Tougher

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Bitcoin (BTC) briefly rose above $30,000 on Tuesday, extending its weeklong trading range higher.

Most cryptocurrencies appear to be stabilizing alongside stocks, which indicates a pause in bearish sentiment among traders. Some technical indicators applied to BTC and the S&P 500 remain in oversold territory, although long-term charts suggest limited upside from here.

Some alternative cryptos (altcoins) rallied on Tuesday, albeit within a six-month downtrend. For example, Solana's SOL token rose by as much as 2% over the past 24 hours, compared with a 3% rise in BTC over the same period. Still, SOL is down by 50% over the past month, compared with a 35% drop in ether (ETH) and a 27% decline in BTC.

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On the regulatory front, Alessio Evangelista, associate director for enforcement at the U.S. Treasury Department's Financial Crimes Enforcement Network, spoke at a Thursday conference where he directed the crypto industry to proactively blacklist “problematic” wallets. Also, finance ministers from the Group of Seven (G-7) large developed economies are preparing to call for faster global crypto regulations, according to Reuters.

In traditional markets, stocks were mixed, while gold, a traditional safe haven asset, ticked higher. Meanwhile, the U.S. dollar turned lower after reaching its highest level in four years last week.

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.

Bitcoin's relative strength

Bitcoin has been outperforming other cryptos over the past few months, which indicates a lower appetite for risk among traders.

Typically, bitcoin declines less than altcoins in a down market because of its lower risk profile relative to smaller tokens. The opposite is true in a rising market.

Only 15% of the top 50 altcoins have performed better than bitcoin over the past 90 days, according to the Blockchain Center. That indicates an aversion to risk.

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