Fun

News Feed - 2023-07-07 03:07:04

Kyle White5 hours agoWhy is Bitcoin price down today?Bitcoin price quickly reversed course today after hitting a 2023 high. Cointelegraph investigates why.119443 Total views312 Total sharesListen to article 0:00Markets NewsJoin us on social networksThe bullish momentum that propelled Bitcoin (BTC) price to a 2023 high over $31,500 on July 6, vanished after investors’ concerns of potential rate hikes resurfaced. 


The contraction in Bitcoin price briefly sentBTC below $30,000 and on top of the renewed worries, traders are concerned that Bitcoin miners sending BTC to exchanges could be a sign of an impending sell-off.


Let’s take a closer look at the factors impacting Bitcoin price today.


Related:Should you ‘orange pill’ children? The case for Bitcoin kids booksWill the Federal Reserve restart interest rate hikes?


Despite the Federal Reserve pausing interest rate increases on June 14, Fed chair Jerome Powell seems committed to reducing inflation by restarting rate hikes.


After Powell’s Federal Open Markets Committee (FOMC) speech on June 14, the market seemed to confidently believe that the Fed would begin increasing interest rates again. CME’s FedWatch tool shows the market"s belief that such increases are coming at the next FOMC meeting on July 26. As of July 6, the probability of interest rate hikes sits at 92.4%.Target interest rate probabilities. Source: CME Group


To date, crypto prices are still highly correlated with the Dow and S&P 500 and most major banks still expect the U.S. to experience a sharp recession at some point in 2023. 


According to U.S. Bank analysis which incorporates more than 1,000 data points, investor sentiment about the current state of the economy remains low.Global economic health. Source: U.S. Bank


According to U.S. Bank analysis,“Persistent inflation, elevated interest rates and uncertainty over the pace of earnings growth in 2023 remain headwinds to advancing equity prices. Although the pace of inflation is waning, the Fed is becoming less hawkish and earnings projections have stabilized.”US-led regulatory pressure against crypto exchanges continues to impact markets 


Despite the recent wave of institutional interest in Bitcoin, the actions of U.S. regulators is still seen as unknown. On July 5, Larry Fink, the CEO BlackRock suggested that Bitcoin is digital gold and he briefly spoke about the firm"s recent Bitcoin ETF application.


While countries like Hong Kong and the United Arab Emirates are embracing Bitcoin, on June 5 and June 6, the United States Securities and Exchange Commission filed civil lawsuits against two of the largest centralized exchanges in crypto, Binance and Coinbase. The action has led to Binance.US seeing market share drop from 22% to under 1%.


While the SEC has previously noted Bitcoin is not a security, some market analysts are weighing if the current increase in actions is a renewed attempt for the Operation Chokepoint 2.0 initiative which aims to restrict access to all digital currencies.


Coinbase may have a pending lawsuit but ETFs, including BlackRock and Valkyrie are listing Coinbase as their required surveillance partner. Coinbase has filed a lawsuit against the SEC for clarity and the SEC is expected to respond by July 13.


Related:CEX crypto trading hits $2.7T in June amid SEC lawsuits, BlackRock Bitcoin ETF filing


While some commentators are excited about the prospect of Bitcoin ETFs, not all analysts agree that the structure is healthy for Bitcoin price, noting “paper BTC” concerns.Can Bitcoin price reverse course? 


The short-term uncertainty in the crypto market does not appear to have changed institutional investors" long-term outlook. Recently, despite a hostile U.S. regulatory environment, large institutions are pushing for Bitcoin financial instruments which may spark a bull run.


Bitcoin price continues to be directly impacted by macroeconomic events, and it is also likely that further regulatory actions and interest rate hikes will continue having some effect on BTC price.


In the long term, market participants still expect the price of Bitcoin to recover, especially as more financial institutions are seemingly embracing BTC.


The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.# Bitcoin# Cryptocurrencies# Federal Reserve# Central Bank# Bitcoin Price# Bitcoin Regulation# Markets# Cryptocurrency Exchange# Interest Rate# BTC Markets# Interest RatesAdd reactionAdd reactionRelated NewsCan memecoins be used as real currency?‘A lot of the bad actors have been shaken out of the market" — Bitvo CEOBitcoin ETFs: Even worse for crypto than central exchangesWhy is the crypto market down today?Why is Bitcoin price up today?Why Bitcoin’s resistance to retesting the $25K support could be futile

News Feed

Hedge Fund Galois Capital Discloses ‘Roughly Half’ of the Firm’s Capital ‘Stuck on FTX’
Hedge Fund Galois Capital Discloses "Roughly Half" of the Firm"s Capital "Stuck on FTX" According to the co-founder of Galois Capital, the hedge fund manager who warned about the T
Circle Issues Update Amid Stablecoin Volatility; Firm Is Prepared to ‘Stand Behind USDC and Cover Any Shortfall’
Circle Issues Update Amid Stablecoin Volatility; Firm Is Prepared to "Stand Behind USDC and Cover Any Shortfall" On Saturday, March 11, 2023, Circle Financial updated the public ab
Wirex CEO Pavel Matveev Shares Expansion Plans for 2020
Wirex CEO Pavel Matveev Shares Expansion Plans for 2020 International payment and crypto service Wirex has enjoyed a productive year. Over the course of 2019, partnerships have b
Bitcoin.com Launches Brand New Crypto Casino BitSpinCasino.com
Bitcoin.com Launches Brand New Crypto Casino BitSpinCasino.com Bitcoin.com sponsors the launch of a brand new crypto casino BitSpinCasino with support for gaming with various crypt
Bitcoin will stay in the $55K to $75K zone for now — Novogratz
Tom Mitchelhill8 hours agoBitcoin will stay in the $55K to $75K zone for now — NovogratzMike Novogratz says crypto is in a “consolidation phase” and predicts that prices will bounce higher at the end of the current
Economist Paul Krugman Criticizes Florida Gov. Ron DeSantis’ Opposition to Central Bank Digital Currency
Economist Paul Krugman Criticizes Florida Gov. Ron DeSantis" Opposition to Central Bank Digital Currency Economist Paul Krugman questioned why Republican Florida governor Ron DeSan
2 key Bitcoin indicators have ‘cooled off’ — Why it could be bullish
Ciaran Lyons5 hours ago2 key Bitcoin indicators have ‘cooled off’ — Why it could be bullishThe Bitcoin funding rate and three-month annualized basis rates are moving to levels that signal to traders it may just be
How to Watch Mark Zuckerberg’s Grilling in Congress Today
Facebook CEO and founder Mark Zuckerberg will be facing a grilling from lawmakers in Congress at 14:00 UTC (10 a.m. local time) today. In his testimony before the House of Represent
While Bitcoin and Ethereum Dominance Slides, Stablecoin Market Caps Reap the Rewards
While Bitcoin and Ethereum Dominance Slides, Stablecoin Market Caps Reap the Rewards During the past 30 days, $285 billion has left the crypto economy and bitcoin’s USD valu
Gareth Jenkinson11 hours agoEl Salvador launches first Bitcoin mining pool as Volcano Energy partners with LuxorEl Salvador’s ambitious renewable energy Bitcoin mining operation welcomes its first mining pool as Volcan
Biggest Movers: WAVES, GMT, and EOS Among Big Gainers on Easter Weekend
Biggest Movers: WAVES, GMT, and EOS Among Big Gainers on Easter Weekend Following recent declines in price, WAVES climbed higher to start the weekend, as crypto markets moved margi
Worldcoin: Unlocking the future of digital identity with proof of personhood
Savannah Fortis9 hours agoWorldcoin: Unlocking the future of digital identity with proof of personhoodThis episode of Decentralize with Cointelegraph explores how Worldcoin is pioneering the future of digital identity th