good morning. Here’s what’s happening:
price: Bitcoin rose early, but then fell after Federal Reserve Chairman Jerome Powell dampened the enthusiasm stemming from less aggressive rate hikes with hawkish comments.
insight: Is Dr. Copper’s recent turnaround a positive sign for Bitcoin?
price
CoinDesk Market Index (CMI)
882.47
−3.1 ▼ 0.4%
Bitcoin (BTC)
$17,811
+32.7 ▲ 0.2%
Ethereum (ETH)
$1,308
−13.3 ▼ 1.0%
S&P 500 Daily Close Price
3,995.32
−24.3 ▼ 0.6%
Money
$1,819
+5.2 ▲ 0.3%
Government Bond Yield 10 Years
3.5%
▲ 0.0
BTC/ETH price by CoinDesk index; Gold is the COMEX spot price.Price around 4pm ET
Bitcoin Seesaws, Holds $17.8K
James Rubin
US Central Bank Chairman Jerome Powell pointed out that the Fed has not put an end to its financial hawks even after the recent rate hike was cut to 50 basis points, prompting investors to Bitcoin looked poised to maintain momentum this week before cooling off.
The largest cryptocurrency by market capitalization recently traded at $17,811, about 24 hours ago. BTC broke above $18,300 earlier in the day following an unexpected slowdown in November inflation data and the Fed’s expected dovish turn. But in his press conference after the Federal Open Market Committee (FOMC) interest rate announcement, Powell returned to the months-long theme that rising inflation is the biggest threat to the economy.
“50 basis points is still a historically large increase, and there is still a long way to go,” Powell said at a press conference following the FOMC’s statement.
Ether followed a similar pattern, trading at $1,308 after rising earlier in the day, down about 1% from Tuesday. UNI, the token of decentralized exchange Uniswap, and LINK, the token of software platform Chainlink, fell 3.2% and 3.1% respectively, while most other major cryptocurrencies were in the red.
The CoinDesk Market Index (CDI), a metric that measures cryptocurrency performance, recently dropped 0.33%.
Equity indices troubled by Chairman Powell’s remarks ended with the tech-heavy Nasdaq and S&P 500 down 0.8% and 0.5% respectively. The consumer price index fell to his 7.1% on Tuesday, below his 7.3% forecast by economists responding to the FactSet survey.
The Federal Reserve Board’s latest interest rate raises the Federal Fund’s target range to 4.25% to 4.5%, the highest level in 15 years. Powell has suggested that the current rate hike cycle’s peak rate, the final rate, is likely to exceed 5% in the next year. The Federal Funds Rate is the interest rate that banks charge each other when they borrow or lend money.
Meanwhile, Senators Elizabeth Warren (D-Massachusetts) and Roger Marshall (R-Kansas) have passed legislation to crack down on money laundering and funding terrorists and rogue states via cryptocurrencies. Submitting. The Digital Asset Anti-Money Laundering Act brings Know Your Customer (KYC) rules to crypto participants such as wallet providers and miners, and prohibits financial institutions from trading with digital asset mixers. This is a tool designed to obscure the origin of funds.
Edward Moya, a senior market analyst at forex market maker Oanda, said in an email that the current Congress is in its final week and unlikely to pass the bill, but said, We will address national security concerns accordingly.” Crypto companies must play by the same rules that apply to banks and traditional companies. ”
biggest price riser
biggest loser
Insight
“Dr. Copper Offers Encouragement to Bitcoin Investors
By Glenn Williams Jr.
Having moved into positive territory following the Thanksgiving holiday, the correlation between Bitcoin and copper continues to climb.
The increase is significant given that copper is traditionally associated with economic health. Analysts often see copper as a growth indicator and affectionately refer to it as “Dr.” Copper” for its professional ability to predict trends. Therefore, doing well for copper bodes well for the economy, which in turn bodes well for Bitcoin.
The market is positive on copper, with futures contract prices up 8% over the past three weeks. If past relationships are correct, this trend implies market confidence in the US economic outlook.
In contrast, Bitcoin (BTC) maintains a strong negative correlation with the US Dollar Index (DXY). Investors will keep an eye on the index in the coming weeks, especially after the Fed’s Federal Open Market Committee (FOMC) adjusted rate hikes to 50 basis points from the earlier more aggressive 75 basis points on Wednesday.
Yet Fed Chairman Jerome Powell was unexpectedly hawkish in his post-interest-rate comments, reiterating his long-standing concerns about inflation.
Will Bitcoin follow Dr. Copper’s prescription or follow the lead of the US Dollar Index? The coming weeks will be worth watching.
important event
8:30 AM HKT/SGT (00:30 UTC) Australian Unemployment SA (November)
10:00 AM HKT/SGT (2:00 UTC) China Retail Sales (YoY/November)
21:15 HKT/SGT (13:15 UTC) European Central Bank Monetary Policy Decision Statement
coin desk tv
In case you missed it, here’s the latest episode of “First Mover” on CoinDesk TV.
FTX founder Sam Bankman-Fried denied bail.Bitcoin Rise Ahead of Major Fed Decision
Sam Bankman-Fried is in custody after a Bahamas judge ruled he should be denied bail, but it was now the US Senate Banking Committee’s turn to investigate witnesses to FTX collapse . Rep. Richie Torres (DN.Y.) joined “First Mover” to discuss the latest developments and his recent legislation targeting cryptocurrency exchanges. Matt Stoller of the American Economic Liberties Project also participated. Additionally, 3IQ’s Mark Connors shared his outlook on the cryptocurrency market ahead of today’s long-awaited Federal Reserve decision on interest rates.
headline
Binance CEO Changpeng ‘CZ’ Zhao warns staff in turbulent times: “We expect the next few months to be bumpy, but we will get through this difficult time,” CZ said, assuring the organization is built to last.
Citi Says Crypto Market Leverage, Open Interest Is Historically Low: The bank expects a broader focus on decentralization in 2023, following this year’s failures with centralized cryptocurrency ventures.
Crypto traffic in India plummeted as the tax regime tightened. Two government taxes have reduced the use of Indian cryptocurrency platforms, but interest in Binance remains stable as the exchange is outside the country’s jurisdiction.
US Senators Warren, Marshall Introduce Digital Assets Anti-Money Laundering Bill: The proposal brings Know Your Customer rules to cryptocurrency participants such as wallet providers and miners.
FTX Hearings in US Senate Reveal Congress Has No Immediate Answer: As the crypto industry’s epic disaster continues to unfold with criminal cases and regulatory action, US senators found no clear path at Wednesday’s hearing.
