The volatility in the cryptocurrency markets stayed high in the past week due to high inflation and fluctuations in the US Dollar. However, following the UK government's U-turn on the tax cuts, the major digital tokens have been trading in the green.

"The volatility has broadly increased in recent weeks as the market participants reacted to the rising inflation and fluctuations in the US dollar," Edul Patel, co-founder and CEO of crypto investment platform Mudrex, said.

"There was a major policy u-turn from the newly formed UK government, which decided to roll back the proposed tax cuts, that had sent the GBP into a depreciation spiral," Parth Chaturvedi, lead of Crypto Ecosystem at trading platform CoinSwitch, said.

"Risk-on assets reacted in tandem, with most of them reversing their price slide, and have been trading in the green for the last two sessions," he continued.

Bitcoin has risen 2.2 per cent in the last seven days, trading close to $20,000 on Friday, according to coinmarketcap. Ethereum was up 1 per cent in the last seven days and was trading at $1,355 on Friday.

"Since the Merge, ETH has slowed down a bit with several macroeconomic factors affecting the crypto market," Patel said.

Ethereum completed its upgrade "Merge" on September 15. It shifted from the proof of work (PoW) mechanism to the proof of stake (PoS) mechanism. It is expected to cut energy consumption by 99.9 per cent.

However, the biggest news of the week came from Binance. According to reports, roughly $100 million of Binance Coin was stolen by hacking. Changpeng Zhao, the co-founder of Binance, announced it on Twitter.

"An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily