Can The Bitcoin Price Survive Today’s FOMC Statement? Here’s What Experts Think
The Bitcoin price gained approximately 2.3% in the past 24 hours to trade around $28.6k on Wednesday, as the cryptocurrency market awaits the release of the United States Federal Reserve‘s third interest rate statements. However, fears of a possible further banking crisis following the First Republic Bank’s recent implosion have made many traders cautious.
Capitulation Fears Continue
Despite the rise in Bitcoin price, many traders remain cautious. The cryptocurrency was strongly rejected at $30k, and there is a significant possibility that it could be forming a head and shoulder pattern that often results in a downward trend.
Impact of Previous FOMC Statements on Bitcoin Price
During the previous FOMC statements, the Fed announced an increase of 25 basis points on the interest rate to 5%, resulting in Bitcoin’s price slipping from trading around $28.6k to about $26.6k. In contrast, during the February FOMC statement, which saw the Fed raise the interest rate by 25 basis points to 4.75%, Bitcoin price edged higher during the day but ended up losing value in the subsequent week.
Also Read: FOMC News: Here’s What Bitcoin (BTC) Traders Can Expect With FED Increasing Interest Rates
Experts are using technical analysis to try to formulate the crypto price action during the subsequent FOMC releases. According to cryptocurrency analyst Captain Faibik, Bitcoin price could hit $32.8k after today’s FOMC statement, relying heavily on the technical analysis that shows a widening wedge formation. A rise towards $32.8k could see the top digital asset enter the last phase of an Elliott wave that began earlier this year.
Is XRP A Security Or Not? What to Expect in Today’s Ripple Vs SEC Hearing
Today marks a pivotal hearing in the Zakinov v. Ripple class action lawsuit, which could have significant implications for Ripple and the future of its XRP token. Scheduled for 08:30 PM (UTC) in California’s federal court, the hearing will focus on the class certification for XRP holders suing Ripple. And guess what? Access to the proceedings has been granted to 500 lucky members of the public via an online platform.
Plaintiff Bradley Sostak Leads the Charge
The plaintiff, Bradley Sostak, argues that XRP is a security and seeks to be the lead plaintiff in the case, representing all XRP holders. This includes those who have experienced losses from selling XRP and current investors who still hold the asset. The hearing will cover Ripple’s direct sales, as well as secondary and international sales, extending to countries where XRP is considered a non-security.
Related: “Don’t Sell Your XRP Before Ripple v SEC Lawsuit Concludes”, Warns Expert – Coinpedia Fintech News
Two Sides of the XRP Coin: Ripple Supporters vs. Security Claimants
The XRP community is divided into two distinct groups: those who side with Ripple in its legal battle against the US Securities and Exchange Commission (SEC), and those who have filed a class action lawsuit against the company. The former group supports Ripple’s assertion that XRP is not a security, while the latter group claims otherwise.
Related: Ripple Vs SEC Lawsuit: What’s Holding Up the Judgment? – Coinpedia Fintech News
Both groups of XRP holders are closely monitoring the hearing, as the court’s ruling will likely have a significant impact on the entire community. The lawsuit shares similarities with the SEC’s litigation against Ripple, and the judge’s decision on whether Ripple should be prosecuted for its sales of tokens could influence the XRP price and investor sentiment.
Crypto Market Resurgence: XRP Gains Amid Bullish Trend
As the broader digital currency market experiences a sort of bullish revival, with the combined crypto market cap increasing by 2.66% to $1.19 trillion, XRP has also seen growth.
The token’s value has risen by 3.7% in the past 24 hours, trading at a spot price of $0.471 at the time of writing. While some core metrics, such as trading volume, face challenges, the cryptocurrency may be on track for a more defined growth trajectory moving forward.
Congressional Republicans Slam SEC Chair Gary Gensler’s Crypto Approach! Explosive Details Emerge in Today’s Hearing
The battle between the US Securities and Exchange Commission (SEC) and the crypto industry has taken center stage as SEC Chair Gary Gensler faces criticism from Republicans on the House Financial Services Committee. The committee claims Gensler’s approach to crypto companies is not compatible with existing law, and his statements urging the industry to register are a “willful misrepresentation” of the agency’s frameworks. Amidst this tug-of-war, Gensler is set to testify before the committee, followed by a crypto-specific hearing discussing stablecoins.
Gary Gensler Faces Intense Criticism
In a bold move, Republicans on the committee have recently signed a letter arguing that national securities exchange regulations do not fit well with digital assets due to their potential for non-investment use. The letter accuses Gary Gensler, the chair of the Securities and Exchange Commission (SEC), of making a “willful misrepresentation” by urging the industry to “come in and register” with the agency. These statements, the Republicans argue, are inconsistent with the SEC’s current regulatory frameworks.
The letter said:
“Given an NSE can only list securities that have been offered in compliance with the securities laws, the inability to register makes the current NSE framework ill-suited for digital asset trading platforms. Moreover, the lack of clarity provided by the SEC as to what digital assets are considered securities also limits what an NSE can list.”
As the crypto industry eagerly awaits Gary Gensler’s testimony before Congress, the Securities and Exchange Commission (SEC) Chair has reaffirmed his stance on crypto regulation. In a prepared statement released on Monday, Gensler doubled down on his belief that “most crypto tokens are securities” and called for all crypto exchanges to register with the SEC.
This comes as the SEC has taken enforcement actions against several exchanges, including Beaxy and Bittrex, signaling Gensler’s push for exchanges to register as a national securities exchange, broker, and clearinghouse.
Gary Gensler Fails To Describe Crypto Regulations
During a hearing before the House Financial Services Committee, Chairman Patrick McHenry criticized Gary Gensler for his lack of clarity on how cryptocurrency firms should adhere to current laws and regulations.
SEC Chair Gary Gensler faced tough questioning during the hearing, particularly around the classification of Ethereum. Committee Chairman Patrick McHenry pressed Gensler on whether ETH should be considered a security or commodity, citing the SEC’s 50 enforcement actions in the crypto space. However, Gensler avoided giving a direct answer and instead offered a vague response, saying “it depends on the facts of the law,” much to the frustration of McHenry.
“Not clearly mentioning the rules as to how companies should comply and punishing them is not ideal.”
McHenry cited conflicting statements about whether Ethereum is a security or a commodity, including a 2018 statement by a former SEC director that it is not a security and a 2023 statement by the CFTC chairman that it is a commodity. He noted that the lack of clarity in the market is further compounded by the New York attorney general’s position on the matter.
Can Bitcoin Price Flip $25k Ahead Of Today’s CPI Data? Here’s What To Expect
The Bitcoin (BTC) market has gained more popularity following the collapse of three United States banks in the past few weeks. The top digital asset by market capitalization has gained over 20 percent in the last five days to trade around $24.3k during the early London trading session. As more investors lose faith in the traditional banking sector, the Bitcoin market continues to register high inflows.
According to a famous economist on Twitter ‘Balaji’, banks are failing due to the Fed’s continued hike in interest rates. Moreover, Balaji noted that banks purchased treasury bonds amid interest hikes in the past year.
As Bitcoin price trades above pre-FTX levels, investors are more confident in its recovery from last year’s logarithmic downtrend. Notably, Bitcoin price is 64 percent lower than its ATH, $69k, which was achieved in late 2021.
Bitcoin’s Price Spike: A Closer Look
Having been adopted globally by institutional investors and retail traders, Bitcoin is highly susceptible to high-impact news, particularly the consumer price index (CPI). Moreover, consumer prices account for a majority of the overall inflation impact. With the FOMC statements on federal funds rates expected on Wednesday next week, Bitcoin volatility is anticipated to spike in the coming days.
According to famous economist Michael van de Poppe, if Bitcoin fails to break through $25.2k, then $23k will be imminent. Ark Invest founder Cathy Woods has called out the Fed for centralizing the banking sector in the United States and the lagging of crucial indicators like CPI.
He also forecasts today’s CPI and the expected impact on Bitcoin.
Rally or Bust? How Bitcoin Will React to Today’s FOMC Meeting
The FOMC meeting is quickly approaching; therefore, analysts have begun making their forecasts for Bitcoin’s price movement when the meeting concludes. Is it going to have a bounce back, or will it crash?
Expert Pitches In
Famous crypto analyst and YouTuber George Tung predicts a Bitcoin rise based on the king coin’s stability over the previous four weeks and the expectation that interest rates would be set at 25 basis points.
He said that well-known cryptocurrency skeptic Jim Cramer has declared a bull market, which makes him (Tung) a little nervous since it is common knowledge in the cryptocurrency industry that whatever Cramer predicts will not come to pass. If he claims the market is bullish, it should raise some red flags.
Bitcoin, in Tung’s opinion, will have a very positive month in February. Over the previous several years, February has consistently been a positive month for the market.
“The market has a lot of similarities to 2019. If we’re at the breaking point like in 2019, that means there will be a tremendous increase soon.”
Tung claims that we are following the trend of the 2019 rebound that saw Bitcoin’s price rise from under $4,000 to over $12,000. By that measure, Bitcoin’s price should reach $35,000 within the next six weeks.
Since the beginning of the year, the price of Bitcoin (BTC) has continued to rise despite several warnings to the contrary across various time periods. In the last 24 hours, the value of a king coin has increased by 1.2% to $23,100.
Both $23,200 and the 100 hourly simple moving average are near-term resistance to price advancement. The following significant barrier to buyer power is located close to the $23,300 zone. It’s not far from the 50% Fibonacci retracement level of the decline from the high of $23,951 to the low of $22,519. But all signals continue to be bullish, so hopefully, there will no low.
Bitcoin Price Rally Above $18 Ahead of Today’s Crucial CPI Data
Bitcoin price has gained approximately 4.14 percent in the past 24 hours to trade around $18,163 during early Asian trading sessions on Thursday. The global crypto market capitalization pumped approximately 3.32 percent to stand at approximately $885.59 billion today. The stock market led by key indexes like Dow, S & P 500, and Nasdaq also rallied ahead of today’s December Consumer Price Index (CPI) report for investors.
The Consumer Price Index (CPI) from the Bureau of Labor Statistics shows how the prices of goods and services changed in a given month. Notably, consumer prices account for a majority of overall economic inflation.
While the United States controls approximately 25 percent of the global economic activities, market strategists believe today’s CPI data is crucial for the entire world including crypto assets. As such, economists polled by Dow Jones expect the December CPI report to show that prices dipped 0.1 percent from the month before.
“What makes [today’s] consumer price index number a big deal? Simple: We’re looking to see if we’re nearing the end of the period where companies can raise prices with impunity,” CNBC’s Mad Money host Jim Cramer noted.
Closer Look at Bitcoin Price and Crypto Market Outlook
Bitcoin price is at a crucial crossroads that could either see the end of the year-long bear market or a continuation. From a technical standpoint, Bitcoin price is retesting last December’s high, and a support level that held since mid-2022 until the FTX implosion. A breakout above this level could invalidate the 2022 bear market, with analysts expecting a consolidation before the onset of the next bull market.
However, a pullback from the current Bitcoin price level could result in a correction toward $15,500. Consequently, the altcoin market could pull back from the ongoing rally. As such, analysts have cautioned crypto traders to be patient with the market in such times.
Moreover, the fear of missing out alias FOMO could result in a huge stop hunt as long traders get liquidated before a pullback in the coming days. Some of the best-performing altcoins in the past 24 hours include Avalanche (AVAX) which has gained approximately 22.43 percent to trade around $15.43 on Wednesday.
Nonetheless, some altcoins lost significantly in the past day including Solana’s latest meme coin BONK exchanged for $0.00000103, down approximately 34 percent.
What Role Will Today’s CPI Data Play In Bitcoin And Altcoin Price ?
The bears have taken control on the overall cryptocurrency market as the global crypto market cap has plunged by 1.50% and is positioned at $909.8 Billion.
This market crash is led by Bitcoin, the first born cryptocurrency where it has lost $19,200 area and is trading at $19,043 with a fall of 0.52% over the last 24hrs. On the other hand, Ethereum is leading the altcoin correction with a drop of 1.10% in the last day and is changing hands at $1,281.
Other altcoins too have fallen prey to this pull back as in the last 24hrs Binance Coin (BNB) has declined by 2.52% while XRP has given up a whooping 6.60%.
The top losers list is led by Cardano as ADA has lost 7.11% over the last 24hrs to trade at $0.365 and it has declined by 15.62% in the last seven days. Solana has been pulled by 3.93% valued at $30.04. Also Polygon MATIc has joined the losers list after the currency had a negative pull off by 6.92% in the last 24hrs.
Even the meme currencies like Dogecoin and Shiba Inu have given up 3.86% and 5.49%, to trade at $0.057 and $0.00000976 respectively.
Crypto Crash On PPI Release
The main reason that is affecting the crypto market revolves around macroeconomic conditions due to the Federal Reserve’s hawkish approach towards financial measures. Yesterday, the Producer Price Index (PPI) data was released which is reading 8.5% Year-on-year. This marking has exceeded the expected one which was at 8.4%. However, the core PPI where food and energy price is not included is flashing 7.2% lesser than the expected marking of 7.3%.
Furthermore, today’s Consumer Price Index (CPI) release is set to impact the crypto market majorly.