Bitcoin settles at $21K ahead of FOMC

Alexander Kuptsikevich FxPro

Bitcoin is clinging to the $21,000 level, having changed little in the past 24 hours, while Ethereum is adding 1.7% overnight to $1450. Prices of the top altcoins range from -0.6% (Cardano) to +4.2% (BNB).

The total capitalisation of the crypto market, according to CoinMarketCap, rose 0.85% to $978bn overnight.

Bitcoin came under increased pressure on Tuesday, but the sell-off stalled during the New York trading session as it was supported by buying on declines below 21,000.

Markets await the US Federal Reserve's rate decision to be announced on Wednesday and are set to see the Fed's another 75 points hike, but futures are pricing a 20% chance of a 100-points hike. Some speculators are rushing to bet that we will see a relaxation rally when the most pessimistic expectations do not come true.

According to CoinShares, capital inflows into crypto funds last week amounted to $30M, of which $19M for BTC. At the same time, investments in funds, which allow opening shorts on bitcoin, dropped sharply (to $0.6 mln). The previous week's total capital inflows sharply revised from $12M to $343M.

The number of ransomware attacks fell by 23% amid the decline in the crypto market, SonicWall noted.

The US Commodity Futures Trading Commission (CFTC) will create a new Office of Technology Innovation to regulate the cryptocurrency industry.

According to Bloomberg, the US Securities and Exchange Commission is conducting a full-scale investigation into token listings on Coinbase that could be treated as securities.f

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

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