Bitcoin (BTC-USD) dipped by over 4.5% to around $66,800 this week as traders resized their bets amid rising tensions in the Middle East and the Fed’s continued wait-and-watch approach on rate cuts. Ethereum (ETH-USD) also declined by nearly 8% this week.
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COIN Heads to Canada
Coinbase (NASDAQ:COIN) has obtained a restricted dealer license in Canada under the Canadian Securities Administrators (CSA), as the crypto exchange faces mounting regulatory woes in the U.S. The move will enable COIN to operate legally in Canada. Kraken, another crypto exchange, is also in the process of becoming a registered dealer in Canada. In contrast, Binance (BNB-USD) has exited from the country. Despite its regulatory challenges in the U.S., COIN’s stock price has soared by nearly 300% over the past year.
A New Stablecoin
Meanwhile, the stablecoin market is about to get a new entrant, a US stablecoin from Ripple Labs (XRP-USD). The token will be backed by US dollar deposits, short-term government bonds, as well as cash equivalents. It will be distributed on Ethereum and XRP’s blockchain, and it is largely expected to begin trading later this year. Stablecoins act as a means to evade volatility owing to their price peg with another asset, usually the dollar.
Does BTC Have a Use Case?
While the gyrations in Bitcoin’s price remain on top of investors’ minds, the actual use cases for the cryptocurrency remain a topic of debate. This week, the President of the Minneapolis Fed, Neel Kashkari, exclaimed that the popular cryptocurrency has no actual utility in the economy and the volatility in its price could prove to be harmful to investors. Meanwhile, the current price setup indicates the weakness in BTC could continue over the coming sessions.
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