Bitcoin (BTC-USD) is set to post a weekly gain of ~2% and is on track to end the month nearly 40% higher, thanks to renewed risk-on sentiment as markets were reassured by signs of slowing inflation.
“Smart investors used themselves quietly the recent US inflation print as a confirmation signal to buy Bitcoin – and other cryptocurrencies,” said Markus Thielen, head of research, Matrixport. He also noted that most of the gains this month were driven by institutional investors in the US
A survey by Mizuho found that retail investors likely avoided cryptocurrencies despite the rise in bitcoin (BTC-USD) this month.
Investors are now looking ahead to the Federal Reserve’s policy meeting next week, where a 25bp rate hike is widely expected. Bitcoin (BTC-USD) could come under pressure if the Fed sticks to its dovish stance.
Bitcoin (BTC-USD) has been trading in the $22,000 to $23,000 range this week. The total crypto market capitalization is currently $1.06 trillion, more 0.6% on Thursday, according to CoinMarketCap.
- The Federal Reserve denied Custodia Bank’s request for access to its payment system because its risk management framework was “inadequate” to address concerns about illicit activity.
- The SEC is said to be intensifying its oversight of registered investment advisers that directly or indirectly have custody of clients’ crypto assets.
- Senior White House officials have urged Congress to expand the powers of regulators to prevent cryptocurrency abuse and mitigate conflicts of interest.
- The Dutch central bank has fined Coinbase (COIN) Europe 3.33 million euros for providing crypto services without registration. The company disagrees with the enforcement order.
- New York’s financial watchdog has instructed firms not to commingle customers’ crypto assets.
More job cuts
- Crypto exchange Gemini is cutting staff by an additional 10% after being caught up in the bankruptcy of lender Genesis. Gemini has made at least three rounds of job cuts in the past eight months.
- Luno, the London-based crypto exchange owned by Digital Currency Group, is laying off 35% of its workforce.
- Moody’s ( MCO ) is said to be in the early stages of developing a scoring system for stablecoins, reportedly analyzing up to 20 such tokens.
- Mango Labs, the company behind crypto exchange Mango Markets, is suing Avraham Eisenberg for $47 million for “fraudulently” diverting about $114 million from its depositors.
The price of Bitcoin
- Bitcoin (BTC-USD) is up 0.3% higher at $23.09K at 7:05 PM ET, while ether (ETH-USD) fell 0.3% to 1.60 thousand dollars.
- SA’s The Digital Trend author remains skeptical of bitcoin’s recent rise and “even if the bottom has been reached, there’s no need to rush here.”
Crypto-related stocks that finished higher on Friday include: Cipher Mining (CIFR) +16.7%Coinbase (COIN) +15.8%Robinhood Markets (HOOD) +7.8%BIT Mining (BTCM) +7.6%.