Cryptocurrency sector faces inflation headwinds and regulatory shifts

The cryptocurrency sector is navigating a mix of regulatory shifts and macroeconomic pressures. In the United States, higher-than-expected core Consumer Price Index (CPI) data has increased the likelihood of Federal Reserve interest rate hikes, creating short-term headwinds for Bitcoin. Analysts at CoinShares suggest that while this makes sustaining prices above $80,000 difficult in the immediate term, potential large-scale U.S. Treasury interventions in the bond market could serve as a medium-term catalyst for Bitcoin.

In corporate developments, Coinbase has announced it is reverting its self-custody wallet app name from ‘Base App’ back to ‘Coinbase Wallet.’ The company is shifting its focus toward trading functionality, introducing ‘Pulse Mode’ for perpetual futures trading via Hyperliquid. The wallet will support various chains, including Ethereum, Solana, and Monad.

In Japan, the exchange Coincheck will implement new security measures starting September 15. Following requests from the Financial Services Agency and the National Police Agency to combat fraud, the exchange will restrict transfers to newly registered withdrawal addresses for a set period. This move follows similar security enhancements previously adopted by GMO Coin.