Despite the Federal Reserve's recent decision and remarks, the crypto market seems unmoved from its entrenched positions. On the day, the crypto market capitalization experienced a modest 0.25% decline, a notably smaller dip compared to the Nasdaq's losses of -1.5%. This movement appears more as a reflection of the dollar's 0.3% gain during the period. In the world of Bitcoin, the sell-off has been intensifying around the 50-day moving average, maintaining a clear downtrend. The price hovers around $27.0K, a level it has been steadily declining from since early August, coinciding with the onset of the latest bearish momentum.
However, Bitcoin's resilience is evident as it starts showing signs of buying interest around the $26.8K mark. This tug-of-war between buyers and sellers is unlikely to persist for long. The market is expected to determine its direction before the end of this week, with current indications leaning towards further declines.
Intriguingly, long-term Bitcoin holders have been accumulating coins that they previously sold to short-term investors during the spring. This accumulation behavior typically marks the early stages of bull markets, as noted by Bitfinex, suggesting a positive outlook for the future.
Noteworthy Developments in the Crypto World
- Bitcoin's resurgence above $27K is attributed by QCP Capital to rumors of a delay in the distribution of funds to Mt. Gox customers until 2024, a departure from the previous expectation of completion by October 31, 2023. Currently, Mt. Gox holds approximately 142,000 BTC.
- SEC spokesperson David Hirsch emphasized the regulator's expanding interest in the crypto space, extending beyond large exchanges. Increased oversight is anticipated on intermediaries, including brokers, dealers, exchanges, clearing agencies, and other cryptocurrency organizations.
- The New York State Department of Financial Services (NYDFS) has reduced the list of pre-approved cryptocurrencies eligible for trading and storage on licensed cryptocurrency platforms. Notably, XRP, DOGE, LTC, and ETC have been removed from this list.
- According to a survey conducted by Coinbase, approximately 20% of Americans now hold cryptocurrency. Furthermore, a staggering 87% of respondents expressed the belief that the US financial system is in need of change. Among 18–34-year-olds, 72% share the perspective that "crypto provides direct control over one's finances."