The SEC has filed a lawsuit against the CEO of the largest cryptocurrency exchange, Binance. For many, this event had been a long time coming, since Binance had mostly closed its doors to American investors. But, we are positive about the SEC's move since it will only push more participants to follow the rules, which should enhance trust among institutional traders. It's critical to remember that Binance is not Bitcoin, and that the SEC's case against Binance does not herald the end of the crypto sector, especially Bitcoin. Authorities are now doing what they should have done a long time ago: promoting only those players who follow the rules and protecting consumers, who are often left holding the bag.
While the Fed is taken off surprise, the recent decrease in Bitcoin prices presents an opportunity for traders. The Fed's hardline monetary policy will almost certainly have to be eased, which will only increase demand for Bitcoin. Moreover, the US financial sector has experienced a significant setback, leading many to believe that bitcoin is the solution to many of the problems that banking institutions face.
The precious metal is still trading downward; but, we have seen some green today, indicating that some buyers are returning to the market. The recent sell-off has brought buyers back into the market, although gold dealers are aware that the big event that will move the needle will be the US NFP data, which is expected next month. Having said that, traders are closely monitoring all US economic data, and today's US Consumer Confidence statistic, which will be announced at 15:00 BST, is expected to increase volatility for the metal. Consumer confidence is projected to fall, forcing the Fed to halt hiking interest rates.
The information is purely for education purposes only and cannot be perceived as an advise.
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