Federal Reserve Chair Jerome Powell announced the US is advancing stablecoin regulatory framework development, while Circle formally applied for a national trust bank license following its $18 billion IPO.
Market analysts are closely watching the January US CPI report wherein a lower-than-expected inflation print could trigger a recovery in Bitcoin and altcoins.
Fed Chair Powell ruled out a US CBDC under his tenure, backing the Trump administration’s push for stablecoins over digital fiat.
“People use Bitcoin as a speculative asset, right? It’s like gold—only it’s virtual, it’s digital,” Powell said.
Following Donald Trump’s victory, the crypto market attention is now on the upcoming FOMC meeting, where the Federal Reserve is expected to announce a potential 0.25% rate cut potentially driving Bitcoin price to $100K.
Crypto investors will be watching two major macro developments this week that includes the Fed Chair Jerome Powell speech and the upcoming US non-farm payrolls report on Friday.
Top Ethereum investors led by Jump Trading have been on a selling spree in the last few weeks, thus increasing bearish sentiment.
This was the highest net inflow recorded by the funds in a single day since July 23.
Apart from Fed Chair Powell’s speech, investors will closely watch BOJ plans of rate hikes as the Yen carry trade unwinding led to major havoc in the market last month.
The influx of capital into spot Bitcoin ETFs seemingly coincided with a positive price movement for the underlying asset. Bitcoin rose 2.70% in the past 24 hours.
Bitcoin’s major divergence from the US equity market comes amid forced selling by BTC miners in order to cover their operational costs.
Senator Brad Overcash, R-Gaston, said that the bill aims to discourage the US federal government from pursuing a plan that could jeopardize one of America’s most vital assets: the US dollar.
Bitcoin’s decline triggered a chain reaction, impacting other cryptocurrencies, including Ethereum, which dropped 2.18% to around $3,440, while meme coins like Shiba Inu, PEPE, Dogwifhat, and Floki fell over 10%.
In February this year, Kiyosaki predicted Bitcoin would reach around $100,000 by June. However, the crypto asset is still far from reaching the $100,000 mark, with its current price hovering around $71,000.
Bitcoin price recovered quickly after a dip to $61,500 following Fed Chairman Jerome Powell’s comments about keeping interest rates unchanged.