Crypto's Big Players Take a Pause: What's Going On?

Bitcoin and Ethereum, the leading names in the cryptocurrency space, had a quiet Friday after a strong start to the week. Bitcoin peaked at $94, 600 on Wednesday and was trading near $95, 300, marking a 4. 6% increase for the week. Ethereum also saw gains, rising 5. 9% to $3, 250. However, trading activity was surprisingly low. Bitcoin's trading volume dropped by 27% to $65 billion, and Ethereum's fell by 32% to $54 billion. Other cryptocurrencies like Solana, XRP, and Dogecoin experienced similar slowdowns. One major event that might have contributed to this calm was Coinbase's decision to withdraw support for a crypto regulation bill. This decision came after weeks of negotiations and growing tension between crypto firms and the SEC. Despite this, Coinbase's CEO remained optimistic, suggesting the bill could still pass with bipartisan support.The delay in the Senate Banking Committee's work on the CLARITY Act, a bill aimed at regulating crypto, has also affected market sentiment. Some believe the SEC is being overly strict with crypto firms, which has added to the uncertainty. External factors, such as protests in Iran and pressure from former President Trump on the Federal Reserve, might also be influencing the market. Fed Chair Jerome Powell even warned about potential interference from the White House in the central bank's independence. Interestingly, while stocks faced a downturn, crypto and precious metals performed well. Since Monday, Bitcoin ETFs have been drawing significant attention, with $1. 8 billion in inflows over four days. However, this surge is primarily driven by big Wall Street players, with everyday investors staying out of the action. This rally seems to be more about institutional investors and ETFs rather than retail participation.