Bitcoin and Ether, the two largest cryptocurrencies by market capitalization, faced a decline during afternoon trading hours in Asia on Thursday. This dip in prices comes as investors remained cautious ahead of the vote on the Markets in Crypto Assets (MiCA) bill in Europe. In addition, concerns over global market inflation persisted, leading to mixed performance in Asian equities and a decline in U.S. futures.

According to data from Coinglass, Bitcoin fell 1.31% to US$28,934 in the 24-hour period leading up to 4:30 p.m. in Hong Kong. On a weekly basis, Bitcoin experienced a decline of 3.88% after approximately US$262 million worth of long positions were liquidated in the past 24 hours. This downward trend in prices has led some pseudonymous crypto traders, such as Doctor Profit, to suggest that Bitcoin is currently in a “pre-bull run range” of US$25,000 to US$38,000. Doctor Profit further expects Bitcoin to remain within this range before potentially rising after next year’s halving event.

The decline in Bitcoin and Ether prices has raised caution among crypto investors, particularly due to the upcoming vote on the MiCA bill in Europe. The MiCA bill, which stands for Markets in Crypto Assets, is a regulatory proposal aimed at establishing a comprehensive framework for cryptocurrencies and other digital assets within the European Union. The outcome of the vote could potentially impact the regulatory landscape for cryptocurrencies in Europe and beyond, leading to increased uncertainty and caution among investors.

In addition to regulatory concerns, global market concerns over inflation have also contributed to the cautious sentiment among investors. Inflation refers to the general increase in prices of goods and services over time, eroding the purchasing power of fiat currencies. As cryptocurrencies like Bitcoin and Ether are often seen as a hedge against inflation due to their limited supply and decentralized nature, any signs of inflation in traditional markets can impact the performance of cryptocurrencies as well.

The cautious sentiment among investors has also been reflected in mixed performance in Asian equities and a decline in U.S. futures. Asian equities showed varied performance, with some markets experiencing gains while others faced losses. U.S. futures, which are contracts that represent an agreement to buy or sell an asset at a later date, also faced a decline, indicating potential concerns about the overall market sentiment.

As the cryptocurrency market continues to evolve and face regulatory and market challenges, investors are advised to exercise caution and stay updated with the latest developments. The outcome of the MiCA vote and global market concerns over inflation are factors that could impact the performance of cryptocurrencies like Bitcoin and Ether, as well as other cryptocurrencies in the top 10 by market capitalization.

In summary, Bitcoin and Ether experienced a decline during afternoon trading in Asia as investors remained cautious ahead of the MiCA vote in Europe and global market concerns over inflation persisted. This cautious sentiment among investors has also been reflected in mixed performance in Asian equities and a decline in U.S. futures. As the regulatory and market landscape for cryptocurrencies continues to evolve, it is important for investors to stay informed and exercise caution in their trading decisions.