5 Things to Know in Crypto Today: Crypto Resurgence Sends BTC to $21,000
- Economic indicators and hawkish Fed chatter failed to influence BTC and the broader crypto market.
- Thursday’s ECB monetary policy decision contributed to a rotation out of safe haven assets into riskier assets.
- The shift in market sentiment saw more than $50 billion pour into the crypto market, with the market cap returning to $1,000 billion.
US Economic Indicators and Fed Chatter Take a Back Seat
On Thursday, Fed Chair Powell stood by the Fed mantra of bringing inflation to target at all costs. US economic data favored a more hawkish Fed. However, there were two revelations. Firstly, the Fed is unlikely to move beyond 75-basis point rate hikes. Secondly, the Fed is not alone in its desire to bring inflation under control.
Investor sentiment was evident across the global equity markets and the crypto market.
Bitcoin (BTC) Leads the Top Ten Crypto Rebound
On Friday, BTC is up 10.04% to $21,263. While a return to $21,000 may seem insignificant, several significant factors need consideration.
- Bitcoin fell through the August and July lows to a new September low of $18,549 on Tuesday.
- Technical indicators and the Bitcoin Fear & Greed Index painted a gloomy picture throughout the week.
- Fed fear was the primary crypto headwind before the great Dollar-unwind.
While the Bank of Canada failed to shift investor sentiment on Wednesday, the ECB had a material impact on the global financial markets. There was a broad-based market realization that the need to bring inflation to target, at any cost, extends beyond the Fed.
A BTC bearish trend reversal will likely form if FOMC members avoid talking up one percentage point rate hikes. We will, however, want to see BTC and the broader crypto market consolidate today’s gains over the weekend.
Legal Battles Continue to Plague the Digital Asset Space
Elon Musk faces the wrath of crypto investors. A crusade to sue Elon Musk, Tesla, and SpaceX has evolved into a full-blown legal assault, with more crypto victims joining the battle to take on the world’s richest man. This week news hit the wires of new plaintiffs joining the $258 billion lawsuit alleging that Musk is running a DOGE pyramid scheme.
Another high-profile lawsuit is the SEC v Ripple case. A famous William Hinman speech has become the focal point of the case.
By way of background, the former SEC Director of the Division of Corporation Finance, William Hinman, is a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
However, with the lack of progress towards a conclusion, XRP has struggled.
Singapore Bank DBS Partners with Sandbox to Enter the Metaverse
“Create DBS BetterWorld, an interactive metaverse experience showcasing the importance of building a better, more sustainable world, and inviting others to come along.”
Quentin Tarantino Settles Miramax NFT Lawsuit
In 2021, Tarantino announced the planned auction of seven NFTs on the Secret (SCRT) blockchain. The launch coincided with news of the Miramax lawsuit. Tarantino went on to sell one of the seven NFTs for $1.1 million before suspending the auction, citing market volatility.