Recent price fluctuations of Bitcoin and new initiatives from the American government are creating waves of interest in the crypto market.
Current Situation and Dynamics of Bitcoin
Bitcoin continues to trade around $113,000 after a brief drop below $112,000. This drop occurred in the wake of the largest net outflow from U.S. Bitcoin ETFs in six months. Despite the dip, the atmosphere remains constructive, as Bitcoin price has already reached $113,430, which is an increase of 25% year-to-date.
Fed's Decision and Its Consequences
The U.S. Federal Reserve has kept its benchmark interest rate unchanged at a target range of 4.25% to 4.5%. Chairman Jerome Powell suggested that rates may remain high longer than markets hoped, which has caused some dissent among Fed members, pointing to the significance of current economic conditions. According to Joe DiPasquale, CEO of BitBull Capital, "The Fed is clearly in wait-and-see mode."
New Digital Asset Strategy from the White House
This week, the White House released a 163-page national digital asset strategy outlining key regulatory goals for stablecoin, tax policies, and the use of enforcement powers by the SEC and CFTC. Experts noted that while the document largely reiterates previously stated priorities, it contributes to a clearer understanding of digital asset regulation, influencing companies' preparations for new market conditions and requirements.
The current situation in the Bitcoin market and the new strategic stance from the U.S. signal significant changes in the regulatory landscape, which could impact the future of crypto investments.
