Bitcoin

This Week’s 3 Major US Events to Watch for Crypto Market

Published

3 months ago

August 19, 2024

Coin2049 Newsletter

Crypto markets are eyeing several US macroeconomic events this week that could influence Bitcoin’s price. In 2024, macro developments have regained their effect on crypto assets, marking a shift from 2023, when their impact had largely faded.

Bitcoin (BTC) remains below $60,000, a concerning price drop given the lower highs on the daily chart. The decline comes on the back of market sentiment shifting from fear to extreme fear.

US Macro Events This Week

Given this, investors are paying close attention to upcoming data releases and policy announcements that may impact market sentiment, potentially sparking volatility. With several events on the US economic calendar this week, three stand out as key triggers for potential price swings in Bitcoin and other cryptocurrencies.

Minutes of Fed’s July FOMC Meeting

The Federal Reserve (Fed) will release minutes from its July Federal Open Market Committee (FOMC) meeting on Wednesday, August 21. The release will provide insights into the Central Bank’s thinking regarding interest rates and monetary policy.

Any hints of a dovish or hawkish stance could cause waves in the financial markets, including cryptocurrencies. A dovish tone suggesting potential rate cuts could boost risk on assets like Bitcoin, while a more hawkish tone might lead to a sell-off.

10x Research data revealed a strong correlation between Bitcoin price and inflation trends as the influence of macroeconomics on crypto resumes. As BeInCrypto reported, the Fed kept interest rates steady at 5.25% to 5.50%, aligning with market expectations.

After last week’s US CPI (Consumer Price Index) inflation data, traders have fully priced in a 25-basis-point rate cut in September. They also anticipate a 24.5% chance of 50 basis points (bps) move, with futures pointing to over 90 bps worth of easing by the end of 2024.

Initial Jobs Claims

Crypto markets also look forward to Thursday’s weekly report on initial jobless claims. The US Bureau of Labor Statistics (BLS) will use this data to offer a snapshot of the labor market’s health and could influence investor sentiment.

A lower-than-expected number of jobless claims may indicate a strong economy, potentially driving investors towards riskier assets like cryptocurrencies. Conversely, more claims could spark concerns about a slowing economy, leading to a flight to safety and possible declines in Bitcoin and crypto prices.

In hindsight, both crypto and broader financial markets faced a turbulent start to the month, largely due to weaker-than-expected US economic data, especially a disappointing July jobs report. This triggered significant market volatility, driven by growing concerns over a potential recession.

Notably, these concerns have begun to ease, as seen by traditional safe-haven assets like the Japanese yen giving up some of their early August gains. If the economic data released on Thursday, August 22, falls below expectations, Bitcoin could benefit as investors shift back to risk-on assets.

Jerome Powell’s Speech at the Jackson Hole Retreat

Traders and investors also anticipate Fed chair Jerome Powell’s Friday speech at the annual Jackson Hole Economic Policy. Markets will be laser-focused on what Powell has to say in retreat.

The title of remarks from last year’s Jackson Hole economic symposium was ‘Inflation: Progress and the Path Ahead.’ Then, he said policymakers are prepared to hold rates at restrictive levels until they are confident inflation is moving sustainably down to 2%.

Like in 2023, the Friday event will interest traders and investors. Powell will either endorse or push back market pricing as policymakers commit to deciding the next rate move based on data.

Therefore, Powell’s comments on the state of the economy, inflation, and monetary policy could set the tone for market expectations. Traders will be listening closely for any clues about future interest rate decisions, which could influence the direction of Bitcoin and cryptocurrency prices.

Bitcoin Price Outlook Ahead Of US Macro Events

Bitcoin is consolidating within a symmetric triangle. This means the next directional bias will only be revealed after the price breaks out from this technical formation. Based on the Relative Strength Index (RSI) outlook, which measures momentum, BTC could continue range bound for the short term. This is as the RSI remains below 50, suggesting a lack of conviction among the bulls.

The volume profiles reinforce the same supposition, with the bullish and bearish spikes (orange and grey, respectively) showing leeriness from both sides. Similarly, the Awesome Oscillator (AO) position in negative territory with red histogram bars accentuates this thesis.

A break and close below the lower trendline on the daily timeframe could see Bitcoin foray into the demand zone. This would provide late bulls and sidelined traders with another buying opportunity between $53,485 and $57,050.

Nevertheless, if such a move happens and BTC closes below the $53,313 midline, the downside potential could extrapolate Bitcoin’s ability to collect the sell-side liquidity.

Bitcoin Price Performance — BTC/USDT 1D Chart. Source: TradingView

Conversely, a break and close above the upper trendline could encourage more buy orders. Based on the orange spikes of the volume profile, several bulls await to interact with BTC prices above $63,000. Buying pressure above this level could invigorate the upside potential.

Nevertheless, only a decisive candlestick close above $67,000, the midline of the supply zone, would confirm the continuation of the uptrend.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Bitcoin

Here’s How Binance And BlackRock Dominate The BTC Market

Published

9 hours ago

November 12, 2024

Coin2049 Newsletter

The cryptocurrency market has witnessed a major evolution in recent years, with centralized exchanges and now recently spot Bitcoin exchange-traded funds (ETFs) playing a crucial role in driving adoption.

Among the participants helping to boost crypto adoption, the two key players leading this charge are Binance, the world’s largest cryptocurrency exchange, and BlackRock, with its spot Bitcoin ETF known as IBIT, according to the latest insight shared by a CryptoQuant analyst.

The analyst reveals their influence extends across trading volumes and institutional investment, making them central figures in the current Bitcoin market.

Market Share And Institutional Presence

The CryptoQuant analyst Crazzyblockk highlighted Binance and BlackRock’s pivotal roles in a post on the CryptoQuant QuickTake platform.

According to Crazzyblockk, the emergence of spot Bitcoin ETFs, which began operations in January 2024, has further solidified Bitcoin’s role in mainstream finance.

Centralized exchanges and spot Bitcoin ETFs metric. | Source: CryptoQuant

Among these, Binance stands out due to its dominance in spot BTC trading volume and vast BTC reserves, holding 623,000 BTC out of the 3.15 million BTC collectively held across all centralized exchanges.

In comparison, BlackRock’s IBIT ETF has become a leader in the ETF space, holding 434,000 BTC of 1 million BTC across all spot ETFs.

Furthermore, the CryptoQuant analyst noted that in terms of market share, Binance accounts for approximately 19.7% of the BTC reserves held across all exchanges, establishing its stronghold as a central player in global Bitcoin trading.

Meanwhile, BlackRock’s spot BTC ETF, trading under the ticker IBIT, has also emerged as a key institutional player. Holding over 43.4% of the total Bitcoin reserves across all spot ETFs, BlackRock’s presence signifies the growing institutional demand for Bitcoin exposure through regulated financial products.

Bitcoin Market Performance

Along with Binance and BlackRock’s role in the Bitcoin market, the asset has installed hope and confidence back into investors following its recent price performance.

So far, BTC has surged by more than 20% in the past two weeks and over 10% in the past 7 days bringing its price above $75,000. Particularly, the asset trades for $75,700, at the time of writing up by 1.8% in the past day.

Bitcoin (BTC) price chart on TradingView — BTC price is moving upwards on the 1-hour chart. Source: BTC/USDT on TradingView.com

This current market price marks a mere 0.7% decrease from its all-time high of $76,243 created yesterday. Interestingly, despite the asset still seeing a continuous uptick in price as of today, BTC’s daily trading volume appears to have cooled off.

Data from CoinGecko shows that this metric of BTC has seen a notable decline from more than $130 billion as of November 6 to a valuation below $70 billion as of today.

Featured image created with DALL-E, Chart from TradingView

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Bitcoin

Bitcoin Surpasses Silver, Claiming 8th Largest Global Asset Title With $1.76T Valuation

Published

10 hours ago

November 12, 2024

Coin2049 Newsletter

The unstoppable price run of Bitcoin, which started a day after the US presidential elections, is creating a ripple effect in the economy. There’s been a massive jump in value recently, with Bitcoin topping $89k earlier today, showing a 27% increase from the previous week. Then, there are record inflows into Bitcoin ETFs, pushing funds to break some records. This price action also reshaped the list of the world’s biggest assets through market capitalization.

#Bitcoin flips Silver! Now the 8th largest asset by market cap.🚀 pic.twitter.com/RAPCJd5gd2

— MEXC (@MEXC_Official) November 12, 2024

Based on the updated list of top assets, Bitcoin is now ranked 8th on the list of the “Top 10 Largest Assets by Market Cap”, with a total market value of $1.756 trillion, slightly ahead of silver, valued at $1.736 trillion. This is the second time the digital asset has edged out silver in the rankings, driven by a bullish sentiment on Bitcoin ETFs and blockchain in general.

Bitcoin breaking into the top world assets is a testament to the growing public acceptance of the crypto asset and its role as an alternative to traditional assets like gold.

Bitcoin’s Market Value Grows As Price Tops $89k

Bitcoin continues its surprising rally this week, testing another all-time high at $89k. On Tuesday, Nov. 12th, the digital asset surged beyond $89,0000, reflecting an 11.3% increase, while silver dipped by 2%, allowing Bitcoin to notch the 8th spot in the list.

With this latest price action, Bitcoin now trails Saudi Aramco, which is ranked 7th. Amazon, Google, Microsoft, Apple, Nvidia, and gold round out the Top 10. Gold remains the world’s top asset, with a market cap valued at $17.667 trillion, dwarfing Nvidia and Apple by around $3 trillion each.

BTC registers a new ATH. Source: Bitstamp

A Milestone Worth Celebrating

According to The Kobessi Letter, Bitcoin’s current market value and recent price action reflect the digital asset’s potential. The commentary further reacted that gold’s value, which is 10x bigger than BTC, is incredible. However, it also sees the potential of the top digital asset to grow even bigger.

BTCUSD trading at $87,604 on the daily chart: TradingView.com

Bitcoin has consistently increased in price recently, partly driven by Trump’s convincing election victory. Trump has a friendly approach to the crypto community. With the Republicans capturing both houses in the last voting, it will be easier for the incoming president to pursue his crypto-friendly policies.

Big Volumes And Bullish Sentiment From Institutional Investors

Aside from the “Trump Effect,” Bitcoin is also rallying thanks to bullish sentiment from institutional investors. Many financial institutions are integrating BTC and cryptos into their portfolios, boosting the digital assets’ prices. For example, Bloomberg senior analyst Eric Balchunas noted a solid increase in volume for Bitcoin ETFs trading, with iShares Bitcoin Trust (IBIT) enjoying a $4.5 billion trading volume yesterday.

MicroStrategy is another company that’s benefitting from the Bitcoin rush. Michael Saylor’s MicroStrategy holds the biggest Bitcoin-based portfolio, with its shares currently trading at $340. On Monday, the company announced that it had purchased 27,200 BTC, boosting its total to 279,420.

Featured image from Siam Bitcoin, chart from TradingView

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Bitcoin

US Could Soon Pass National Bitcoin Reserve Bill

Published

14 hours ago

November 12, 2024

Coin2049 Newsletter

US Senator Cynthia Lummis remains optimistic that her national Bitcoin reserve bill proposal could pass within the first 100 days of Donald Trump’s second term.

On November 11, Lummis posted on X, expressing confidence that bipartisan support could propel the bill forward if public support grows. She argued that this legislation would enhance the US financial system and reinforce the country’s leadership in Bitcoin.

Senator Cynthia Lummis Seeks Support for National Bitcoin Reserve Plan

Lummis introduced the Bitcoin Reserve bill in July, intending to use funds from the Federal Reserve and Treasury to acquire one million bitcoins. This amount would make the United States the largest government Bitcoin holder, representing about 5% of the network’s supply — similar to the US gold reserve stake.

“We can get this done with bipartisan support in the first 100 days IF we have the support of the people. It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act,” Lummis said on X.

The legislation also aims to establish a Bitcoin reserve and secure property rights over Bitcoin ownership and custody. It proposes a decentralized network of secure vaults under Treasury Department oversight, ensuring top-tier asset protection.

Although the bill previously stalled in the Senate, advocates believe it has a better chance now, with Trump favorably inclined toward it.

“The Bitcoin and Crypto industry’s policy wishlist is long and pressing… but the Strategic Bitcoin Reserve is the #1 most urgent and transformational policy on President Trump’s agenda. The downstream effects change everything. We must get it done in the first 100 days,” David Bailey remarked on X.

Despite this enthusiasm, the bill would still need to go through the full legislative process, including approvals from the Senate and House, before reaching the president for final authorization.

The concept of a national Bitcoin reserve bill has already drawn bipartisan interest. Democratic Representative Ro Khanna recently voiced support on a podcast, highlighting Bitcoin’s growth potential.

“We want to make sure that we have openness to having Bitcoin as part of the Federal Reserve and as a reserve asset because of its potential for appreciation and its potential to allow America to set financial standards,” Khanna said.

Additionally, Matthew Sigel, Head of Digital Assets Research at VanEck, pointed out that a national Bitcoin reserve could strengthen US influence in areas such as energy production, artificial intelligence, and decentralized finance. He also noted that the US could use over 200,000 BTC while mining more through public-private partnerships in frontier cities, with no capital risk involved.

Lummis and her supporters believe this proposal could strengthen the Bitcoin-backed economy and ensure America’s position at the forefront of financial innovation.

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