What’s Next for Crypto: The Latest News, Market Update, And Much More!
In times of volatility, instability, and recession, market sentiment has a strong influence on asset prices. One of the major influences on sentiment within the global economy, and consequently on short-term price action in the cryptomarkets, are the six-weekly meetings of the FOMC (Federal Open Market Committee). A subcommittee of the US Federal Reserve and it sets targets for the Federal Reserve Rate (FRR).
For traders in the financial markets, FOMC meetings are a time of volatility because any change in federal fund rates can affect a range of economic variables such as short-term interest rates, foreign exchange rates, long-term interest rates, employment output, and prices of goods and services.
Generally speaking, both the traditional share and crypto markets tend to fall before FOMC meetings and bounce back afterward. As you’ll see below, that’s what happened to Bitcoin and ETH last week. However, for long-term investors, FOMC meetings are irrelevant.
The Oracle of Omaha, Warren Buffett takes no notice — because he relies on fundamentals to guide his investing decisions. We think that’s a very wise approach.
Weekly highlights
- The Merge was a success and the Ethereum network now operates on the Proof of Stake validation protocol. We are still in the final stages of testing the network and will have ETH deposits and withdrawals running in the next 48 hours.
- On Monday this week, the Reserve Bank of Australia released its White Paper on a central bank digital currency (CBDC) called the eAUD. The paper also calls for submissions by interested parties and includes a timeline for the implementation of its pilot programme of use cases.
- Concerned that Australia is being left behind in the blockchain revolution Senator Andrew Bragg has drafted a bill calling for defined regulations covering cryptocurrencies, stablecoins, and the treatment of China’s digital yuan in Australia.
- US Treasury has asked for public opinion on crypto regulations, with a deadline for submissions of 3rd November 22.
- Despite having a crypto ban, China still manages to account for 84% of global blockchain patent applications.
- The US state of Colorado is now accepting tax payments in crypto, as promised by the State governor.
- The Bank of England says the UK is already in a recession, and in response has raised its cash rate by 50 basis points in an effort to curb inflation.
Bitcoin update
Last week Bitcoin’s stabilized around the $19,000 level, with firm lower range support at the $18,450 level. At the top end, resistance was met at $19,650, which was the top price of the 2017 bull run.
Ethereum update
The success of the Merge has been great news for Ethereum and the planet, as it has reduced the network’s energy consumption by 99.8%. Ethereum had a rocky start to the week amidst a strong leg down, with the price retraced to $1,280 before consolidating at $1350.
Unlock The Power of The Dacxi Wealth Platform: Your Questions Answered
Join Dacxi UK Head of Sales Gareth Cleverly and our customer success team for an insight-pack session on how to best utilize the Dacxi platform to support your wealth-building strategy. You’ll learn:
- Everything you need to know about 2FA
- How to buy and sell
- What the ‘withdraw’ and ‘transfer’ functions mean
- And how to find your wallet addresses for your coins
Thursday 29th September, 9:00 pm AEST
