Bitcoin Holds Steady Above $23K, White House Urges Congress to ‘Step Up’ Crypto Regulation

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latest prices

CoinDesk Market Index (CMI)

1,092.39

+6.2 0.6%

Bitcoin (BTC)

$23,144

+66.7 0.3%

Ethereum (ETH)

$1,603

−0.8 0.0%

S&P 500 daily close

4,070.56

+10.1 0.2%

Prayed

$1,928

−0.7 0.0%

Treasury Yield 10 Years

3.52%

0.0

BTC/ETH prices for CoinDesk Indices; gold is the COMEX spot price. Prices starting at 4 pm ET

bitcoin (BTC): The largest cryptocurrency by market value was recently trading at $23,100, up 0.4% in the last 24 hours, as traders awaiting next week’s Federal Open Market Committee decision on interest rates. BTC is up almost 40% since January 1. on track for his best start in a year since 2013 when it increased by 51%.

Actions closed when merchants processed the last Personal Consumption Expenses (PCE) report, which showed a slowdown in inflation late last year. The tech-heavy Nasdaq Composite rose 0.95%, while the S&P 500 and Dow Jones Industrial Average (DJIA) rose 0.25% and 0.08%, respectively.

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Four senior Biden administration officials released a statement on Friday. urging Congress to “step up its efforts” with respect to regulate the cryptocurrency market.

  • The officials: Brian Deese, director of the National Economic Council; Arati Prabhakar, director of the White House Office of Science and Technology Policy; Cecilia Rouse, president of the Council of Economic Advisers; and National Security Adviser Jake Sullivan wrote that Congress “should expand the powers of regulators to prevent misuse of client assets…and mitigate conflicts of interest.”

  • Other suggestions for Congress in the statement included strengthening transparency and disclosure requirements for cryptocurrency companies.strengthening sanctions for violations of the rules on illicit financing and working more closely with international law enforcement partners.

  • The officials also made suggestions about what Congress should not do in terms of crafting new crypto regulation, including “green light[ing] major institutions, such as pension funds, to dive headfirst into the cryptocurrency markets.”

  • Doing so, the officials warned, “would be a serious mistake” that “deepens the ties between cryptocurrencies and the broader financial system.”

Summary of tabs

(CoinDesk Research)

(CoinDesk Research)

ether (ETH): ETH is up 0.2% to recently trade at $1,600.

polygon (MATIC): The MATIC token was recently up 8% at $1.1 on Friday. Its price has risen 55% since December 31 in the middle an increase in daily transactions.

Network Gains (GNS): The native token of the decentralized exchange gained more than 7% to trade at $6.20 on Friday, according to data from CoinGecko. Network earnings has recorded over $1.5 billion in trading volume on the Arbitrum blockchain almost a month after its deployment.

Candlestick Exchange (DXP): Arbitrum-based decentralized trading platform utility token recently gained 50% on Friday as a project prepares to launch its long-awaited beta version next week. DXP had settled on a 26% advance, trading around $2.20 at press time, according to data from CoinGecko.

Analysis of the crypto market: Bitcoin and Ether trading activity slows as investors wait for the next FOMC interest rate hike

By Glenn Williams Jr.

Markets will be watching next week for the Federal Open Market Committee’s (FOMC) interest rate decision, which is largely expected to be a 25 basis point (bps) hike.

BTC’s correlation with the S&P 500 has slightly decreased over the past week, falling to 0.69 from 0.89 on Jan. 11. Its correlation to the tech-heavy Nasdaq Composite remains elevated at 0.89, underscoring that “bitcoin trades like a beta-tech stock.” narrative.

Meanwhile, bullish investors should watch out for the stablecoin supply ratio (SSR).

The SSR measures the relationship between bitcoin supplies and stablecoins. Since stablecoins represent purchasing power, a reduction in the SSR implies that investors are sending stablecoins to exchanges, likely for the purpose of buying bitcoins. Since January 11, the SSR has increased by 32%. So while the price of BTC has risen, investors don’t seem to be sending stablecoins to exchanges in droves to add to long positions.

Bitcoin Stablecoin Supply Ratio (Glassnode)

Bitcoin Stablecoin Supply Ratio (Glassnode)

Read the full technical take here.

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