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Bitcoin (BTC-USD) is set to post a weekly gain of ~2% and is on track to end the month nearly 40% higher, owing to renewed risk-on sentiment as markets were assuaged by signs of inflation slowing.
“Smart investors quietly used the recent U.S. inflation print as a confirmation signal to buy Bitcoin – and other cryptos,” said Markus Thielen, head of research, Matrixport. He also noted that most of the gains this month were driven by institutional investors in the U.S.
A Mizuho survey found that retail investors likely shied away from crypto despite bitcoin’s (BTC-USD) rally this month.
Investors now await the Federal Reserve’s policy meet next week, in which a 25 bp rate hike is widely expected. Bitcoin (BTC-USD) could be pressured if the Fed sticks to its hawkish views.
Bitcoin (BTC-USD) traded in the $22K-$23K range this week. The overall crypto market cap is currently $1.06T, up 0.6% over Thursday, according to CoinMarketCap.
Regulatory Scanner
- The Federal Reserve denied Custodia Bank’s application to access its payment system as its risk management framework was “insufficient” to address concerns over illegal activities.
- The SEC is said to be intensifying scrutiny of registered investment advisors who directly or indirectly have custody of client crypto assets.
- Senior White House officials called on Congress to expand regulators’ powers to prevent crypto misuse and mitigate conflicts of interest.
- The Dutch central bank fined Coinbase (COIN) Europe €3.33M for providing crypto services without registration. The firm disagrees with the enforcement order.
- New York’s financial watchdog directed companies to not co-mingle customers’ crypto assets.
More Job Cuts
- Crypto exchange Gemini is reducing its headcount by an additional 10% on the heels of getting caught up in the bankruptcy of lender Genesis. Gemini made at least three rounds of job cuts in the past eight months.
- Luno, a London-based crypto exchange owned by Digital Currency Group, is slashing 35% of its workforce.
Recent news
- Moody’s (MCO) was said to be in the early stages of developing a scoring system for stablecoins, reportedly analyzing up to 20 such tokens.
- Mango Labs, the firm behind crypto exchange Mango Markets, sued Avraham Eisenberg for $47M as he converted ~$114M from its depositors into his own accounts via “fraud”.
Bitcoin price
- Bitcoin (BTC-USD) inched 0.3% higher to $23.09K at 7.05 pm ET, while ether (ETH-USD) slipped 0.3% to $1.60K.
- SA author The Digital Trend remains skeptical of bitcoin’s recent rally, and “even if a bottom is in, there is no need to chase here”.
Crypto-related stocks that ended higher on Friday include: Cipher Mining (CIFR) +16.7%, Coinbase (COIN) +15.8%, Robinhood Markets (HOOD) +7.8%, BIT Mining (BTCM) +7.6%.
