Markets Are Wary of ETH ETF Outflows; Crypto Doesn't Benefit from Fed's Bearish Position
The general state of the cryptocurrency market took a hit when the Federal Reserve decided to leave interest rates unchanged. Possible rate modifications beginning in September were detailed in the paper.
Priorities for the Near Future vs. the Far Future
Rate cuts in September are reportedly already priced in after the Federal Open Market Committee (FOMC) meeting produced a dovish posture. This information comes from a recent study by QCP Broadcast. Unfortunately, the cryptocurrency markets did not reflect this optimistic outlook. All over the market, there was a sell-off last night.
Crypto traders are becoming wary due to many variables. There is ongoing worry about the daily withdrawals from Ethereum ETFs, which might lead to a decline in the price of ETH. The market is also keeping a careful eye on any increases in supply that may result from the reimbursement of Mt. Gox creditors and the selling of Bitcoin by the United States government.
Beyond these short-term concerns, a sea change may be brewing in the cryptocurrency market. The idea of creating a national Bitcoin reserve is becoming more popular among presidential and senatorial contenders in the United States.
If put into action, this proposal has the ability to create a floor for Bitcoin's price and drastically change the cryptocurrency economy.
I find very interesting the idea of a "put" on Bitcoin values by the United States or another sovereign nation. It implies that Bitcoin's value might be protected by government support.
A total of 5.15 percent of the cryptocurrency market has fallen in the last day. At the same time as Ethereum is fighting to stay above the $3,110 mark, Bitcoin plummeted below the $63,000 mark.
