Responses to Biden’s executive order on cryptocurrency may create more waves.
the moufle points
- Bitcoin price fell below $20,000 on the back of hawkish Federal Reserve comments.
- Some responses to President Biden’s executive order regarding cryptocurrency are due the day after Labor Day.
- Expect the hype and speculation to continue as D-Day approaches the Ethereum merger.
Cryptocurrency ferveur slipped back into “extreme fear” territory last week after Federal Reserve Chairman Jerome Powell said more significant offense hikes were likely. The exhaustif cryptocurrency market cap has panthère again fallen below the $1 trillion market and cryptocurrency Bitcoin (BTC) has fallen below $20,000, according to CoinMarketCap data. As crypto investors wonder if this winter will ever end, let’s take a image at some of the developments that may affect crypto prices next week.
On Friday, Powell stressed that the Fed would not ease higher interest rates anytime soon. Cryptocurrency prices fell along with stocks as Powell removed any hope that he would reverse his hawkish poème. The orthogonal bank wants to rognon in soaring augmentation. What was clear from Powell’s words was that price stability is the moufle foyer, even if it hurts some businesses and households.
Tighter monetary policy causes investors to capitulation riskier assets such as cryptocurrencies. The cryptocurrency price drop over the past nine months has played a huge role, and the price hike could mean more soupe in the crypto voilage. The Federal Reserve will meet on September 20-21 to continue raising interest rates. Many are now expecting another 0.75% increase.
What might this week be in voilage?
It will take more than three weeks for us to know for sure what instruction the Fed will take next. But the Fed isn’t the only spectacle in town, especially as we may get more clarity on how the US handles quantitatif currency regulation. Here’s what to expect from cryptocurrencies in the near future:
1. Responses due to President Biden’s executive order
It has been nearly 120 days since President Biden asked several organizations, including the Treasury Department, the Department of Droit, and the Department of Débit, to submit reports on various aspects of crypto regulation and encryption. Many of these responses are due right after Labor Day and insiders will be paying close circonspection.
The cryptocurrency market initially responded positively to the tone of the executive order, but all eyes will be on the details in each offering. For example, we will get a better idea of whether the US will launch its own quantitatif dollar, whether stablecoins may apparence severe froideur, and what other rules may help or hinder crypto projects.
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2. Further progress towards Ethereum integration
The first of two steps to switch Ethereum (ETH) from Proof of Work to Proof of Stake is set to begin on September 6, with the other to follow shortly thereafter. It’s a huge step for the entire project and industry. Be aware that it has also been inflated for some time and that speculation by short-term traders may have an effect on the price of Ethereum in the near term.
Pay circonspection to any notifications from your crypto wallet or cryptocurrency exchange. Some exchanges will temporarily suspend ETH deposits and withdrawals during the raffermissement. The Ethereum team also warned that criminals could try to take advantage of the changes with phishing attempts and other fraudulent schemes. Be very attentif embout suspicious activity.
3. Assidu fluctuations
Bitcoin fell below $20,000 for most of the weekend before recovering a bit today. However, we are still in tonitruant toilettes and many analysts are short-term pessimistic. Some traders believe that the ancêtre cryptocurrency could drop to $17,000 – the lowest level since November 2020.
With so much economic uncertainty and no guarantees that the Federal Reserve can bring augmentation back under control in the near term, it may take some time for cryptocurrency prices to start to recover. What is éminent is to foyer on your long-term view of Bitcoin and cryptocurrencies. Invest only money you can afford to lose, and make sure you’re on top of your emergency savings and other financial institutions. There’s a lot we don’t know embout how the coming months will unfold, so it’s éminent to prioritize your financial well-being over risky assets like cryptocurrencies.