The cryptocurrency market will face two potentially major blows on Tuesday.
At 15:On the 30th Moscow time, the publication of data on the dynamics of consumer prices in the United States took place, which will directly affect the prospects for the start of the Fed's curtailment of the program of saturating the markets with liquidity. An hour and a half later, the head of the SEC, Gary Gensler, will begin his speech, who, among other things, will touch upon issues of regulation of crypto exchanges.
The good news is that on the eve of the quotes of digital assets did not go below local minimums, and today, unlike stocks demonstrate a propensity for growth, even though the US regulator is actually ready to confirm the "war" on crypto platforms, because the transcript of Gensler's speech is already available for the conclusions of the general public.
According to Caitlyn Long, CEO of Cryptobank Avanti,without the participation of which Wyoming would not have taken place as a cryptostate in the United States, the tone of the speech of the head of the SEC became more "harsh". Lawyer Jerry Brito believes that the department is actually ready to move on to decisive action. Coinbase's disclosure of the conflict with the SEC, the study of the activities of BlockFi and Uniswap, apparently only the beginning.
The regulator is ready to fight, as it seems to him,with the "wild west" in the industry, so some companies may have problems. Risks Today - Answers to Topical Questions of Senators. In particular, yesterday's incident with LTC, when due to a fake press release about the addition of Litecoin as a means of payment by the retailer Walmart, the price of an asset soared by 30%, and then collapsed to its original levels on refutation. Classic Pump & Dump.
Regarding the Fed, chances are that the demand for riskwill prevail after the data on the fact that expectations have come true, supporting digital assets. The problem is that inflation data has recently regularly come out above the forecasts of experts, and there are prerequisites for finally burying the thesis about its temporary nature. The tightening of the Fed's policy will be a serious challenge for the crypto market.
At the same time, on-chain data continues tomaintain a favorable scenario. Among speculators, FUD (data from Santiment) prevails again, which at such extreme values previously led to a recovery in growth. Glassnode notes further growth in HODL sentiment - long-term investors have accumulated almost 80% of the current supply and the fluctuations of the last three months have not unsettled them.
According to Cryptoquant estimates, on exchange addressesnow the minimum amount of BTC since November 2020. Institutions are still inactive and prefer Solana (+ $ 50 million from the total inflow of $ 57 million last week). Continues to buy MicroStrategy (242.9 million, 5050 BTC at an average of $ 48,099).
Technically, the resistance remains the same: $ 47,000 for Bitcoin and $ 3,500 for Ethereum. Despite the controversial background, the chances of retesting them remain prevailing.
text: Aaron Chomsky, Head of Investment, ICB Fund, photo: Getty Images