Bitcoin Resilient as Major Crypto Firm Cuts More Jobs

[ad_1]

BTC/USD analysis

Last year was extremely bad for the crypto industry, which continues to suffer from the recent collapse of FTX. Yesterday, crypto firm Coinbase announced that it would be laying off 950 employees, representing about 20% of its workforce, as part of an effort to cut operating expenses.

CEO Brian Armstrong pointed to FTX as he spoke of “unscrupulous players in the industry”, but said he was confident recent developments will ultimately benefit the company. Coinbase, however, cut an additional 1,250 jobs in June, long before FTX went bankrupt.

Despite this negative news, BTC/USD is having a good week, benefiting from market optimism for a less aggressive Fed, which plays against the USDollar. CME’s FedWatch tool prices – in a small 25 basis point rise at the next meeting and Chairman Powell didn’t push against that yesterday.

The U.S. central bank, however, maintained a very hawkish stance, projecting a median terminal rate of 5.1%, while last week’s minutes pointed out that no participants are expecting a rate cut this year, contrary to market expectations. market.

BTC/USD is now in position to take another crack at the 38.2% Fibonacci of the fall from the November high/December low, but does not yet inspire confidence for sustained strength beyond 50 % (18,384) as the upside looks hostile.

Start trading Bitcoin with confidence

Get a free practice account today.

After a strong start to the week, BTC/USD faces challenges today, while the Relative Strength Index (RSI) failed to follow it higher yesterday. This divergence may lead to renewed pressure towards 16,257, but a strong catalyst will be needed for a break of the 2022 low (15,455).

Market participants are now looking to Thursday’s U.S. CPI inflation update, which may affect Fed thinking and determine the cryptocurrency’s next move.

[ad_2]