A heavy Bitcoin as a warning before the FOMC?

<p>Market picture</p><p>The
crypto market cap fell 0.5% over the past 24 hours to $1.055 trillion. The
recovery momentum was broken with the release of US inflation data, although
other markets quickly recovered from the initial move. Bitcoin lost 1% to
$25.8K, and Ethereum lost 0.5% to $1740. BNB was going up against the market,
adding 5.8%, while XRP is losing 3.5%, having stumbled on profit-taking after
rising.</p><p>The
dynamics of Bitcoin are pulling the crypto market down faster than other
assets, which could manifest as reduced demand in the most risk-sensitive part
of the market spectre before the FOMC decision results.</p><p>There
is an uptrend built through the local lows of the last four days in BTCUSD. But
Bitcoin's attempts to accelerate gains the night before were met with a sell-off
on the approach to $26.4K, the area of the previous consolidation. The Bears
may have the upper hand right now. If so, the declines might accelerate to
$25.7K, directly leading to $24.8K.</p><p>According
to Glassnode, bitcoin's hash rate (smoothed by the seven-day moving average)
has reached 393.9 EH/s. As a result of the expected overnight recalculation,
BTC's mining complexity is expected to update to a high of 52.84T. The increase
in complexity on the back of lower Bitcoin prices is putting pressure on miners'
yields.</p><p>News background</p><p>Fortune
journalists found a video from 2018 in which future SEC chairman Gary Gansler
reveals that BTC, ETH, LTC and BCH are not securities.</p><p>HRP
renewed its 2.5-month high around $0.56 after the court formally disclosed
documents related to former SEC official William Hinman's 2018 speech. At the
time, he claimed that, for some reason, bitcoin and Ethereum were not
securities. Ripple Labs believes Hinman's statements refute all of the SEC's
allegations, so the company has a good chance of succeeding in this case.</p><p>Circle
CEO Jeremy Allaire said it's time for US authorities to develop global crypto
regulations that will significantly impact the crypto industry and the dollar's
competitiveness for decades to come. The first step could be the adoption of
the Stablecoin Act.</p><p>Crypto
exchanges in the US would likely be required to register with the SEC as
brokers, and all cryptocurrencies on the platforms would be classified as
securities, JPMorgan believes. Such a situation would put pressure on the
crypto industry.</p><p>This article was written by <a href="https://www.fxpro.com/" target="_blank" rel="follow">FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

This article was written by FxPro FXPro at www.forexlive.com.