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Bitcoin’s 2023 rebound has stalled around the closely watched US$30 000 level, hampered by the latest US crypto crackdown and a more sober assessment of the outlook for Federal Reserve policy.
The largest token fell as much as 1,1 percent and traded at $29 470 as of 11:30 a.m. yesterday in Singapore, after sinking 3 percent a day earlier in its worst drop since March 9. An index of the top 100 digital assets was also on the back foot.
The Securities and Exchange Commission on Monday added to its digital-asset clampdown, saying that crypto platform Bittrex broke the agency’s rules for years. The growing regulatory heat and cooling expectations for eventual Fed interest-rate cuts are damping investor enthusiasm.
Recent economic data have helped to firm bets on a quarter-point Fed rate hike in May while tempering projections for subsequent policy easing.
Bitcoin may pull back toward $27 000 if “the market continues to take out some of the 60 basis points or so of rate cuts still priced into year-end,” said Tony Sycamore, a market analyst at IG Australia Pty.
The digital currency has jumped 78 percent this year, outstripping an 8 percent climb in global stocks, as crypto markets partially rebounded from 2022’s crash.
But the long shadow of digital-asset bankruptcies and scandals, most notably the collapse of FTX, continues to hang over the sector. — Bloomberg.
Online Reporter