Crypto Caught in Fed Stress

crypto Money markets focused on the US Federal Reserve (Fed) interest rate decision on July 26. Bitcoin, which sat at the $32,000 limit last week, fell below $30,000 on Monday. Noting that Bitcoin faced difficulties at $30K and Ethereum at $1,900, experts said the pullback is largely due to concerns caused by the Fed’s upcoming interest rate decision. While the upcoming interest rate decision will lead to short-term selling, as evidenced by improving indicators in the US economy, the fact that the Fed’s rate hikes are almost coming to an end is seen as a positive in terms of risk assets. like cryptocurrencies.

30 THOUSAND DOLLARS OBSTACLE

As a result, the $30,000 resistance level is cited as a difficult hurdle for Bitcoin. As a result of the Ripple lawsuit filed by the US Securities and Exchange Commission (SEC) and occupying the agenda for a long time, Ripple managed to raise almost all cryptocurrencies, especially Ripple. The securities lawsuit resolution hearing ruled that Ripple “did not violate federal securities law by selling XRP.” However, the Federal Reserve eclipsed Ripple’s enthusiasm. The Fed, which decided to hold interest rates constant at the monetary policy committee meeting last month, will meet on July 25-26 for its July meeting. Expectations that interest rate hikes will continue after a month off next week weigh on cryptocurrency markets. In the Fed’s swap market, the probability of a 25 basis point increase in interest rates is priced at 97 percent.

Apart from this, uncertainty prevails in the cryptocurrency market as it is also a matter of curiosity how the SEC will decide on spot Bitcoin ETFs (stock-exchange-traded cryptocurrencies). With the approval of these ETFs, more than $50 billion in capital flows are expected to flow into Bitcoin ETFs.

The SEC can appeal Ripple’s decision

In addition, the Securities and Exchange Commission (SEC) said Friday that a federal judge erred in ruling against the institution in a major crypto case last week. The statement was taken as a sign that the SEC will appeal Ripple’s decision. US District Judge Analisa Torres ruled that roughly half of Ripple Labs’ sales of XRP cryptocurrency do not violate investor protection laws.