Bitcoin started the new week with a fall. Quotes are testing the strength of the 21,900 level, which served as support. Whether it will hold or not is doubtful, because of the Fed meeting this week, which is expected to raise interest rates.
Fed meeting and bitcoin — what to expect? Technically, the major cryptocurrency has two possible scenarios right now. The first is a recovery if the support of 21,900 holds. The target remains at the level of $25,000 per coin. The second is a return to the 18,900 — 21,900 range and a decline towards its support.
Bitcoin price and Fed meeting — be careful, or what is the connection?
What effect will the Fed meeting have on bitcoin prices? On July 27, the Fed is expected to decide on interest rates. Not only will the fact of raising will matter, but also the rhetoric regarding inflation and the central banks’ further plans for monetary policy.
The cryptocurrency market, as we have seen before, does not like tight monetary policy, and expensive money in a collapse of the crypto market will not help the demand for digital assets. And while technical benchmarks are important and described above, the encouraging predictions of analyst PlanB, creator of his own method for analyzing the crypto market, is worthy of interest.
The analyst noted that the speed at which bitcoin bounced back from its 200-week moving average this month could be one of the drivers missing from similar bearish phases.
Fed meeting and bitcoin: Small buyers take the lead
A recent study by crypto analytics firm Arcane Research noted that cumulative institutional sales reached more than 236,000 BTC during the May 12 Terra/LUNA crash.
Meanwhile, data from another analytics platform, Glassnode, measures that the number of market participants owning amounts of 1 BTC or less has grown faster than ever in the total BTC supply. This trend accelerated sharply in 2022.
Fed meeting: Falling amount of crypto assets under management
While the crypto market rebounded unabashedly last week, the total value of global crypto assets under management (AUM) fell to $30.2 billion last week. And that’s despite a weekly inflow of $30 million. Bitcoin has seen a significant drop in the value of BTC assets under management during the current crypto-winter period.
A CoinShares report shows that international digital asset managers currently hold $19.3 billion in BTC assets. In November 2021, asset management companies owned more than $40 billion in bitcoin assets.
Investment products associated with other crypto-assets, such as Ethereum, BNB and Litecoin, have also run into serious problems over the past eight months.
Regarding annual performance, Ethereum investment products suffered the most. ETH has experienced a record $316 million in outflows since the beginning of 2022.
BNB came in second with an outflow of $22 million. Because of the latest price drop, the total value of ETH’s global assets under management is now about $7 billion, down from nearly $20 billion in November 2021.
Will the Fed regulate Bitcoin: what’s happening to liquidity in the market
A recent weekly CoinShares report noted that inflows into digital assets last week totaled $27 million, compared with a late-week transaction report that adjusted inflows from $12 million to $343 million the previous week. This was the largest inflow for the week since November 2021.
Current inflows were $394 million and total assets under management (AuM) returned to early June 2022 levels of $30 billion. Bitcoin inflows last week were $16 million, with the previous week’s inflows adjusted to $206 million, the largest inflow in a week since May 2022.
The research firm emphasized that Switzerland accounted for most of the recent weekly inflows. Germany and the U.S. accounted for inflows of $8 million and $9 million, respectively.
BTC price holds 6% gains as Bitcoin battles for ‘crucial’ $28K support
Bitcoin (BTC) passing $28,000 hints at bullish sentiment, but reclaiming it for good is essential, analysis says.
In an X (formerly Twitter) post on Oct. 17, Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, described the $28,000 mark as a “critical milestone” for the BTC price.
Glassnode: “Keep an eye out” for $28,000
After snap volatility, which caused Bitcoin to hit $30,000 for the first time since August, the largest cryptocurrency has managed to preserve some of its gains.
For Allemann and Happel, the pair is now at a defining crossroads.
“The crypto market is hinged on BTC’s ability to breach and consistently maintain a value north of $28k,” part of their commentary stated.
$28,000 has formed a battleground ever since Bitcoin first crossed it in early 2021, and liquidity has traditionally surrounded it as bulls and bears fight to secure control over long-term trajectory.
Data from the trading suite DecenTrader, among others, confirms that the status quo remains despite recent BTC price moves, with $28,000 lying in a zone between major longs and shorts of varying leverage.
“While this pivotal milestone was momentarily attained on futures, the spot market price peaked at $27.98k earlier today. It’s evident just how crucial this price point is in the larger scheme,” Allemann and Happel added.
“The rapid movements and these price thresholds aren’t just numbers. They signify investor sentiment, market dynamics. Keep an eye out for the 28k level.”
Road to Bitcoin halving contested
As Cointelegraph reported, predictions over what the future will bring for Bitcoin both before and after its next block subsidy halving in April 2024 differ considerably.
In an interview last month, DecenTrader co-founder Filbfilb eyed BTC price galvanizing itself for upside during Q4, possibly reaching $46,000 by the halving.
Some well-known market participants, however, remain risk-averse. Among them, popular trader Crypto Tony and others are betting on a pre-halving return to $20,000 for a final local bottom.
“Many can scream they are long right now and caught that move, but if your not taking profit here at resistance your doing something wrong,” he told X subscribers about the recent surge.
“I personally will not be long unless we flip that $28,500 level into support.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Ripple job posting hints at possible IPO, XRP community says
Fintech payments company Ripple released a new job posting on Oct. 16 for a shareholder communications senior manager across multiple locations in and outside the United States. The job posting prompted many crypto enthusiasts to label it as an official hint about the company’s plans to go public.
The job posting outlines that the role will require direct communication with shareholders — a concept generally associated with publicly traded companies. The chosen candidate would be responsible for developing and implementing communication and relationship management strategies for “existing and prospective investors, current shareholders, and financial analysts.”
The job description emphasizes the candidate’s need to create strategic plans specifically suited for situations like “M&A [mergers and acquisitions], investments, liquidity events, and other high-impact moments.“
The role includes creating investor-focused materials like “presentations, fact sheets, case studies, and analyses“ to inform and educate potential investors about the company’s prospects and performance — a necessary component of the initial public offering (IPO) preparation process. The responsibilities of the post also include maintaining a shareholder database and managing routine communications like quarterly updates.
Many XRP (XRP) proponents and the pro-Ripple community on X (formerly Twitter) are referring to the job posting as a hint that there may be an IPO. Some key executives from the company have also alluded to the possibility that Ripple might go public but haven’t given any indication of timing.
Anyone notice the recent job openings at #Ripple?
The only reason you need a Shareholders Communication Manager.. is for an IPO.
— Chad Steingraber (@ChadSteingraber) October 16, 2023
The crypto-focused payments company has recently been in the limelight due to the U.S. Securities and Exchange Commission’s (SEC) lawsuit alleging XRP is a security. Ripple scored a major win in the lawsuit in July when a judge ruled that XRP is not a security in terms of sale on digital asset exchanges.
Key Ripple executives have claimed that even though the SEC lawsuit has cost them many business opportunities in the U.S., most of its remittance business lies outside America.
Banks’ crypto exposure must be disclosed — BIS’ Basel Committee
The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose their crypto exposure.
The Basel Committee comprises central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation on banking supervisory matters. The latest consultation paper is based on the disclosure guidelines in the final prudential standard on how banks should handle their exposure to crypto assets released in December 2022.
The consultation paper aims to set a standardized “disclosure table and set of templates for banks’ crypto-asset exposures,” with a proposed implementation date of Jan. 1, 2025. The Basel Committee has opened the proposal for public comment until Jan. 31, 2024, after which the results will be published on its website.
Under the new proposed regulations, banks would be required to provide quantitative data on exposures to crypto assets and the corresponding capital and liquidity requirements. Banks would also be required to offer qualitative data on their activities linked to cryptocurrencies.
Additionally, banks would be required to offer information on the accounting classifications of their exposure to crypto assets and liabilities. In its proposal, the committee claimed that using a uniform disclosure format will encourage the application of market discipline and lessen information asymmetry between banks and market participants.
The committee also reviewed crypto assets and bank exposure in June. At the time, the committee didn’t delve deeply into the topic, mentioning only that it was focusing on permissionless blockchains and the eligibility criteria for “Group 1” stablecoins.
The BIS has been actively involved in crypto consultations and examining the regulatory aspect of decentralized technology. Recently, the BIS and a handful of European central banks published details of a concept to develop a system to track international flows of cryptocurrencies.
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