Cryptocurrencies hit by Fed stress

SHAFAQNA Türkiye – Crypto Money markets focused on the US Federal Reserve’s (FRS) interest rate decision of July 26th. Bitcoin, which was at $32,000 last week, fell below $30,000 on Monday. Indicating that Bitcoin was struggling at $30,000 and Ethereum at $1,900, experts said the retreat was largely due to worries caused by the Fed’s approaching interest rate decision. While the approaching interest rate decision will lead to a short-term sell-off, as evidenced by the improving performance of the US economy, the fact that the Fed’s interest rate hike is almost coming to an end is seen as positive in terms of risky assets such as cryptocurrencies.


As a result, the $30,000 resistance level is considered a major hurdle for Bitcoin. As a result of the Ripple lawsuit filed by the US Securities and Exchange Commission (SEC) and has been on the agenda for a long time, Ripple managed to raise almost all cryptocurrencies, especially Ripple. The securities lawsuit hearing ruled that Ripple “did not violate federal securities law by selling XRP.” However, the Fed has eclipsed Ripple’s enthusiasm. The Fed, which decided to leave interest rates unchanged at its monetary policy committee meeting last month, will meet for its July meeting on July 25-26. Expectations that interest rate hikes will continue after a month-long hiatus next week are putting pressure on the cryptocurrency markets. In the swap market, the Fed has a 97 percent chance of raising interest rates by 25 basis points.

In addition, the crypto market is dominated by uncertainty as it is also curious how the SEC will decide on spot bitcoin ETFs (traded cryptocurrencies on the stock exchange). With the approval of these ETFs, more than $50 billion of capital is expected to flow into Bitcoin ETFs.

SEC may appeal Ripple decision

Additionally, the Securities and Exchange Commission (SEC) said on Friday that a federal judge erred in ruling against the institution in a major cryptocurrency case last week. The statement was interpreted as a signal that the SEC will appeal Ripple’s decision. U.S. District Judge Analisa Torres has ruled that roughly half of Ripple Labs’ sales of XRP do not violate investor protection laws.

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