Bitcoin Holds Above $23,000, 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%

Gold

$1,928

0.7 0.0%

10-year Treasury yield

3.52%

0.0

BTC/ETH Price by CoinDesk Indices; gold is the COMEX spot price. Prices from around 4 p.m. ET

Bitcoin (BTC): The largest cryptocurrency by market value recently traded at $23,100, up 0.4% in the past 24 hours, as traders awaited the decision from the Federal Open Market Committee next week on interest rates. BTC has rallied almost 40% since Jan. 1, on track for its best one-year open since 2013, when it jumped 51%.

Stocks closed as traders processed the latest Personal Consumer Expenditure (PCE) report, which showed inflation slowing late last year. The tech-heavy Nasdaq Composite rose 0.95%, while the S&P 500 and the 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 when it comes to regulating the cryptocurrency market.

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 Advisor Jake Sullivan has written that Congress should expand the powers of regulators to prevent abuse of client assets and mitigate conflicts of interest.

Other suggestions for Congress in the statement included strengthening transparency and disclosure requirements for crypto companies, tougher penalties for violations of illicit finance rules, and working more closely with international partners charged with enforcement. law enforcement.

Officials also made suggestions about what Congress shouldn’t do in terms of crafting new crypto regulations, including the green light.[ing] traditional institutions, like pension funds, to plunge headlong into the cryptocurrency markets.

This, officials warned, would be a serious mistake that would deepen the ties between cryptocurrencies and the broader financial system.

The story continues

Overview of tokens

(CoinDesk Research)

Ether (ETH): ETH rose 0.2% to trade recently at $1,600.

Polygon (MATIC): The MATIC token recently rose 8% to $1.1 on Friday. Its price has risen 55% since Dec. 31 amid a spike in daily trading.

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

Vela Exchange (DXP): The Arbitrum-based decentralized trading platform utility token recently gained around 50% on Friday as the project prepares to release its highly anticipated beta next week. DXP was back to a 26% lead, trading around $2.20 at press time, according to data from CoinGecko.

Crypto Market Analysis: Bitcoin and Ether Trading Activity Declines as Investors Wait for Next FOMC Interest Rate Hike

By Glenn Williams Jr.

Next week, markets will be watching the Federal Open Market Committee (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 declined slightly over the past week, falling from 0.89 to 0.69 on January 11. Its correlation with the tech-heavy Nasdaq Composite remains high at 0.89, highlighting bitcoin exchanges as a high-beta tech stock narrative.

Meanwhile, bullish investors should be wary of the stablecoin supply ratio (SSR).

SSR measures the ratio of bitcoin and stablecoin supply. As stablecoins represent purchasing power, a reduction in SSR implies that investors send stablecoins to exchanges, presumably with the intention 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 en masse to add to long positions.

Stablecoin Bitcoin Supply Ratio (Glassnode)

Read the full technical take here.

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