• Many people believe that UK Prime Minister Rishi Sunak is the reason why crypto is pumping.
  • The crypto market has reached a $1 trillion valuation once again.
  • Prices may stabilize soon; worse, crypto may retrace.

Many people believe that the appointment of Rishi Sunak, the UK’s newest Prime Minister, is the chief reason why the crypto market is pumping. According to them, Sunak has a friendly approach toward cryptocurrency.

Sunak has said on record that he wants to turn the UK into a global hub for crypto.

Coincidentally, the crypto market has reached a $1 trillion combined market valuation. According to CoinMarketCap, the figure is at $1.004 trillion. Major crypto like Bitcoin (BTC) and Ethereum (ETH) have retaken key support levels as well, and are poised for $21,000 and $1,600, respectively.

In addition, over $1 billion in bitcoin shorts have been liquidated in just one day.

However, some argue that Sunak is a wolf in sheep’s clothing. In detail, they believe that the new prime minister is in favor of central bank digital currencies (CBDCs) and not digital assets like bitcoin.

Regardless, the crypto market may witness a relief rally in the coming days. Prices may continue to go up in the next couple of days. However, the price may stabilize soon instead of continuing its rally. Worse, major assets, especially bitcoin, may suffer a price correction, which may cause the tide to favor the bears once more.

BTC/USDT RSI (source: TradingView)

As seen above, BTC’s Relative Strength Index (RSI) is now at 80, which means that the crypto is already oversold. This may cause some traders to sell their holdings for a secured win after making a decent profit.

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