The Bitcoin rate fell below $18.5 thousand. As of September 19, the first Cryptocurrency was trading at $18.46 thousand. Over the past week, the depreciation was 8%.
The asset’s price fell to its lowest level since June 20, when it was trading at $18.2 thousand. The market capitalization of Bitcoin decreased overnight to $355 billion, with a daily trading volume of $33 billion. The total capitalization of cryptocurrencies over this period fell by 7.1% to $945 billion.
Following Bitcoin, rates of other cryptocurrencies also went down. The price of Ethereum dropped 11% to $1.29K in 24 hours, Binance Coin (BNB) fell 6.2% to $260, and Cardano dropped 9.6% to $0.43.
Considering the past week, from September 12 to 16, was not optimism for the cryptocurrency market. Bitcoin losses were 9.59%. The BTC/USDT pair fell to $19.4 thousand. The price of Bitcoin collapsed on Tuesday, September 13, after the publication of the August inflation report for the United States. The consumer price index showed a higher value than the markets expected. Cryptocurrencies collapsed along with stocks amid the dollar rally.
Quite a lot of time has passed since the release of American statistics, and crypto traders and investors are still unable to recover. The next important event that market participants are waiting for is the meeting of the US Federal Reserve on September 21. After the inflation data, market participants began to consider a 100 bp rate hike. According to the CME, the probability of such an increase is 24% versus 0% a month ago, by 75 bp. — 76%. Interestingly, there is a 57% chance of a 100bp or 4% rate hike at the November 2 meeting, which makes the markets nervous.
The positions of traders suffered greatly. They tried to keep the level of $19.5 thousand per Bitcoin, but it did not work out, and on Monday it was trading below $18.5 thousand. Bitcoin is closely connected with the stock market, so its direction will be determined by the dynamics of stock indices. According to technical analysis, the value of the S&P 500 index broke through the trend line at around 3925 points. The Bitcoin exchange rate fell below the $20.5 thousand level, which previously acted as resistance.
next week, TopForex. trade experts expect mainly the continuation of the downward trend in crypto assets. Now the attention of cryptocurrency market participants is focused on the FOMC meeting and the announcement of data on the US rate, which will be held on Wednesday, September 21. Raising the rate by 75 bp is already included in the price, but in the event of a sharp increase in the rate immediately by 1%, at the moment the prices on the stock and cryptocurrency markets will be under pressure amid sales.
The nearest targets for the movement of the main Crypto assets are $17.5 thousand for BTC and $1.23 thousand for Ethereum. Buying interest at these levels is high, and any significant market decline will be actively sought out by players. The annual minimum for Bitcoin is highly likely to be updated, but there is an option that the market will generally remain at current levels in the coming weeks.
Where have the Ethereum miners gone?
On September 15, a long-awaited event in the Ethereum community took place — the transition from mining to staking. The Merge update has been successfully completed, and the owners of the Сryptocurrency mining equipment began to reconfigure it to mine other coins.
The transition saw the computing power of the Ethereum Classic Network (ETH) more than double to 210 terahash per second (Th/s) in the first three hours after the Merger, and on the Ravencoin (RVN) blockchain, the hash rate has risen to 21 Th/s, although throughout the year the figure was at the level of 3–4 Th/s.
At the same time, the team of blockchain developers announced the imminent launch of a fork of the EtherumPow network, which will support the mining of the ETHW token.
The computing power from Ethereum is mainly transferred to Ethereum Classic (ETC) and Ravencoin (RVN), and due to the increase in computing power, the complexity of mining increases proportionally.
The transition of miners to such coins will lead to a reduction in the profitability of their production, which was previously inferior to Ethereum, but at the same time, it will force inefficient players to leave the market, which, in turn, will lead to hash rate stability.
The White House presented the concept of regulation of Cryptocurrencies in the United States
The White House presented the first ever concept of regulation of the Cryptocurrency market in the United States. The new proposals have been in the works for six months after President Joe Biden urged authorities in March to study the risks and benefits of Cryptocurrencies and submit official reports.
One of the points is aimed at combating illegal activities in the digital currency industry. In particular, it is proposed that consideration be given to amending the Bank Secrecy Act, anti-disclosure laws, and laws against money transfers without a license to be of direct relevance to digital asset service providers.
The White House proposals also specifically mention the potential of Central Bank Digital Currencies (CBDCs). The idea is that the digital dollar can positively impact the US payment system and create a foundation for further innovation, enabling faster cross-border transactions.
The US government noted that digital currencies, especially stablecoins, need to be regulated during the collapse of the TerraUSD Cryptocurrency, which led to a series of bankruptcies, the cumulative damage to which amounted to almost $600 billion.