Cryptos Subdued As Dollar Index Surges Past 100

Cryptocurrency market capitalization remains subdued as the Dollar posted strong gains amidst the rapid transition to Fed’s tight monetary policy regime. The Dollar Index, which measures the strength of the Dollar against a basket of 6 currencies touched a fresh 52-week high of 100.04. Crypto market capitalization dropped below the psychological $2 trillion mark, versus $2.02 trillion, a day ago.

Bitcoin is trading at $43,138.09, down almost a percent from the previous day’s levels.

Ethereum is however marginally higher in the past 24 hours, trading at $3,235.05 after edging up 0.09 percent.

4th ranked BNB(BNB), 6th ranked Solana (SOL), 7th ranked XRP(XRP), 8th ranked Cardano (ADA), 11th ranked Polkadot (DOT), 15th ranked SHIBA INU (SHIB), are all trading more than 1 percent lower.

9th ranked Terra (LUNA) is however trading more than 6 percent lower.
10th ranked Avalanche (AVAX) has bucked the trend to gain more than 2 percent amidst reports that Terra Labs has purchased $100 million of AVAX as reserve for its UST stablecoin.

16th ranked NEAR Protocol (NEAR) is trading 22 percent higher versus the levels 24 hours ago. The bullish momentum appeared to be linked to news of it raising funds of $350 million as well as expectations that the blockchain would be announcing its own stablecoin soon.

12th ranked Dogecoin (DOGE), 17th ranked Wrapped Bitcoin (WBTC) and 18th ranked Polygon (MATIC) are trading with losses less than one percent.

Other prominent gainers down the hierarchy are 51st ranked Zcash (ZEC) which has gained 2.85 percent, 56th ranked Convex Finance (CVX) which has added 2.84 percent, 67th ranked Kusama (KSM) which is higher by 2.32 percent and 70th ranked Enjin Coin (ENJ) which has strengthened 2.36 percent.

Meanwhile, speaking at American University in Washington DC, Treasury Secretary Janet Yellen has reiterated that the government’s role had to be to ensure responsible innovation, while at the same time emphasizing the need for tech neutral crypto regulation. She also opined that the overall regulatory framework should be guided by the risks associated with the services provided and not the underlying technology.

The Federal Deposit Insurance Corporation (FDIC) however was more cautious and advised that any FDIC-supervised institution that engages, or intends to engage in, any crypto-related activities should notify the FDIC and provide any information requested by the FDIC. This, the FDIC said would allow the agency to assess the safety and soundness, consumer protection, and financial stability implications of such activities.

As crypto-related activities may pose significant safety and soundness risks as well as financial stability concerns, the FDIC would review the relevant information submitted by the FDIC-supervised institution related to crypto-related activities and provide relevant supervisory feedback to the institution, as appropriate, the letter said.

The recent tone of the regulatory initiatives across the globe has been one of promoting responsible innovation, while building adequate safeguards against the various kinds of risks involved. As crypto and its technologies become more and more entrenched, and intertwined with the traditional systems, the consequences of a risk event can be far reaching. The coexistence of the traditional systems and future oriented technologies warrants an understanding of not just the technology that underpins the crypto space but also the risk events that have shaped the existing legal framework.

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