Bitcoin traders cross fingers in hopes that a positive Fed meeting triggers a run to $18K
Bitcoin (BTC) failed to break above the $17,250 resistance on Dec. 11 and subsequently faced a 2.2% correction. More importantly, the last daily close above this level was over 30 days ago — reinforcing the thesis of size sellers near the $330 billion market capitalization mark.
Curiously, this valuation level is slightly behind Palladium, the world's 23rd most valuable traded asset with a $342 billion capitalization. So from one side, Bitcoin bulls have some reasons to celebrate because the price recovered 10% from the $15,500 low on Nov. 21, but bears still have the upper hand on a larger time frame since BTC is down 64% year-to-date.
Two events are expected to determine traditional finance investors' fate, as the United States consumer price index is expected onDec. 13 and U.S. Federal Reserve chair Jerome Powell will announce the size of the next interest rate hike on Dec. 14. Powell’s press conference will also be anxiously awaited by investors.
In the cryptocurrency markets, there is mild relief stemming from exchanges' proof of reserves, although several analysts have criticized the limited details of each report.
Derivatives exchange Bybit was the latest addition to the transparency initiative, allowing users to self-verify their deposits using Merkle Trees, according to a Dec. 12 announcement.
However, regulatory risks remain high after U.S. Democrat Senator and crypto-skeptic Jon Tester boldly stated that he sees "no reason why" crypto should exist. During a Dec. 11 appearance on NBC, Tester argued that crypto has no real value, so regulating the sector would give it legitimacy.
Lastly, according to Reuters, the U.S. Department of Justice (DOJ) is nearing the completion of its investigation into Binanceexchange,
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