Daily News | Bitcoin's Value Affected by Regulations and Outflows; Tesla, Apple Surge, Banks Face Losses, Federal Reserve in Focus
Crypto Daily Digest: Bitcoin Dips Below $26,000 as Regulatory Concerns and Outflows Persist
Bitcoin (BTC) briefly surpassed $26,000 before retreating below that level due to SEC lawsuits against Binance and Coinbase, as well as concerns about the US central bank’s monetary policy. This drop follows eight consecutive weeks of outflows from digital asset investment products, totaling $417 million. Bitcoin alone saw outflows of $254 million, and Ether (ETH) experienced its largest weekly outflow of $36 million. Regulatory fears and investor caution have also contributed to the uncertain market conditions.
Meanwhile, Binance.US, entangled in a legal battle with the SEC, has urged a federal judge to reject the SEC’s request to freeze billions of dollars of assets on the exchange. Binance.US argues that such a freeze would severely impact their operations, hinder their ability to pay employees and maintain the trading platform, and harm customers. The outflows from crypto funds are driven by concerns over rising interest rates and regulatory uncertainties surrounding the SEC lawsuits against major exchanges.
As the cryptocurrency market faces these challenges, investors are closely watching key macroeconomic data points, such as the US inflation report and the Federal Reserve policy meeting, for insights into future market trends. The outcome of the legal battle between Binance.US and the SEC also holds significant implications for the industry.
Bitcoin (BTC) $25,961 (+0.22%) - Neutral Outlook
Building upon the previous observation made yesterday, it is worth noting that although the price has remained unchanged, there has been a slight rise in trading volume. This upward shift in volume could potentially suggest that the balance of power in the market is shifting towards the bears in the ongoing struggle between the bulls and bears. Consequently, it becomes essential to closely monitor the Consumer Price Index (CPI) data scheduled for release this week, along with paying attention to Powell’s speech at the upcoming Federal Open Market Committee (FOMC) meeting.
Overview:
- Closest daily support zone: 25818 - 25360
- Closest daily resistance zone: 26280 - 26700
- Key Level: 25280 (Daily 200EMA)
Daily Resistance zones
- 26280 - 26700
- 26970 - 27265
- 27790 - 28420
Daily Support zones
- 25818 - 25360
- 25240 - 24270
- 23855 - 23470
Macro: Tesla and Apple Soar, Banks Face Losses; Fed Meeting in Focus
Asian equities opened positively as investors anticipated a pause in the Federal Reserve’s tightening campaign. Japanese and Australian futures rose, while Hong Kong futures saw a slight decline. The market’s focus is on the Federal Open Market Committee (FOMC) meeting, with expectations of maintaining interest rates between 5% and 5.25%. The upcoming consumer price index (CPI) data will play a crucial role in shaping market sentiment and determining the likelihood of a rate hike in July. Chinese assets faced weak sentiment as Goldman Sachs downgraded earnings estimates for some property stocks and predicted a prolonged recovery for the real estate industry.
In corporate news, Tesla extended its winning streak, Apple reached an all-time high, and Oracle’s stock rose after surpassing sales estimates. However, banks such as KeyCorp and Citizens Financial Group Inc. experienced losses. Oil prices dropped as Goldman Sachs revised its forecast downwards for the third time in six months.
Meanwhile, the S&P 500 entered a bull market last week, driven by expectations of a pause in rate hikes. Wall Street strategists hold different views on the market’s future. J.P. Morgan Asset Management’s David Kelly suggests that the numbers do not support further tightening, while Neil Dutta at Renaissance Macro Research believes a “hawkish skip” in the June meeting would only provide a temporary delay.
