Categories: Crypto Review

A heavy Bitcoin as a warning before the FOMC?

Market picture

The crypto market cap fell 0.5% over the past 24 hours to $1.055 trillion. The recovery momentum was broken with the release of US inflation data, although other markets quickly recovered from the initial move. Bitcoin lost 1% to $25.8K, and Ethereum lost 0.5% to $1740. BNB was going up against the market, adding 5.8%, while XRP is losing 3.5%, having stumbled on profit-taking after rising.

The dynamics of Bitcoin are pulling the crypto market down faster than other assets, which could manifest as reduced demand in the most risk-sensitive part of the market spectre before the FOMC decision results.

An uptrend was built through the local lows of the last four days in BTCUSD. But Bitcoin’s attempts to accelerate gains the night before were met with a sell-off on the approach to $26.4K, the area of the previous consolidation. The Bears may have the upper hand right now. If so, the declines might accelerate to $25.7K, directly leading to $24.8K.

According to Glassnode, bitcoin’s hash rate (smoothed by the seven-day moving average) has reached 393.9 EH/s. As a result of the expected overnight recalculation, BTC’s mining complexity is expected to update to a high of 52.84T. The increase in complexity on the back of lower Bitcoin prices is putting pressure on miners’ yields.

News background

Fortune journalists found a video from 2018 in which future SEC chairman Gary Gansler reveals that BTC, ETH, LTC and BCH are not securities.

XRP renewed its 2.5-month high around $0.56 after the court formally disclosed documents related to former SEC official William Hinman’s 2018 speech. At the time, he claimed that, for some reason, bitcoin and Ethereum were not securities. Ripple Labs believes Hinman’s statements refute all of the SEC’s allegations, so the company has a good chance of succeeding in this case.

Circle CEO Jeremy Allaire said it’s time for US authorities to develop global crypto regulations that will significantly impact the crypto industry and the dollar’s competitiveness for decades to come. The first step could be the adoption of the Stablecoin Act.

Crypto exchanges in the US would likely be required to register with the SEC as brokers, and all cryptocurrencies on the platforms would be classified as securities, JPMorgan believes. Such a situation would put pressure on the crypto industry.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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