After Fed comments, stocks and bitcoin briefly decline; DOGE rallies

Dogecoin rose 17% over the past 24 hours compared to roughly flat BTC.

After Fed comments, stocks and bitcoin briefly decline; Source: TradingView

Bitcoin (BTC) traded in a choppy range on Tuesday after US Federal Reserve Governor Lael Brainard stated that the central bank might rapidly cut the size of its balance sheet.
“The [Federal Open Market Committee] will continue steadily tightening monetary policy through a series of interest rate hikes and by beginning to decrease the balance sheet at a brisk pace as soon as our May meeting,” Brainard said in a prepared speech for a Minneapolis Fed conference.
BTC fell 3% after Brainard’s remarks but recovered later in the New York trading day.

Investors cut their exposure to risky assets as a more aggressive approach to tightening central bank policies sent tremors through the market. Stocks fell, as the 10-year Treasury yield rose to its highest level since May of this year.
Dogecoin (DOGE) has gained up to 17 percent in the last 24 hours on Twitter’s (TWTR) news that Tesla (TSLA) CEO Elon Musk has joined its board of directors. Meanwhile, SHIB, another dog-themed meme currency, rose 4% on Tuesday, compared to a 13% drop in WAVES and a flat performance in BTC during the same period.

Bitcoin demand is balanced

The dispersion in crypto returns on Tuesday suggests some skepticism among traders, which is especially seen in the bitcoin futures market.
According to statistics provided by Arcane Research, the average bitcoin funding rate, or the cost of holding long positions in perpetual futures traded on major exchanges, has stayed negative for the 122nd consecutive day on Binance and By bit.

Comparison of Bitcoin funding rates and price (Skew, Arcane Research)

According to Glassnode, blockchain data suggests that short-term bitcoin investors have been building holdings since BTC’s last price low on January 22.
Nonetheless, the average volume of BTC supply kept in long-term holder (whale) addresses has plateaued. “This typically means that this wallet generation is contributing the least to current accumulation patterns,” Glassnode noted in a blog post.

Large holders of bitcoin (Glassnode) supply

Update on altcoins

  • Dogecoin surges again when Elon Musk joins Twitter’s board of directors: Dogecoin (DOGE) surged following Musk’s appointment to the Twitter board of directors. As part of his agreement to join the board, Musk pledged not to increase his holding over 14.9 percent from the current 9.2 percent, which still puts him Twitter’s largest investor.
  • Universal Music Group registers four trademarks for the leader of the Bored Ape Band: Universal Music Group (UMG) appears to be speeding up preparations for its non-fungible token (NFT) band, as it has filed four trademarks related to the Bored Ape Yacht Club NFT, which is introduced as the band’s leader in March. The trademarks denote intentions for cryptocurrency tokens, utility tokens, application tokens, and non-fungible tokens.
  • According to an EU commissioner, the digital Euro may face less stringent AML regulations than Bitcoin: The European Union’s proposed digital euro would undergo money laundering inspections, but not necessarily as stringent as those now intended for normal cryptocurrencies like bitcoin, according to Mairead McGuinness of the European Commission on Tuesday.

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  1. Pingback:Regulation of cryptocurrency markets is being prepared by Georgia’s Central Bank - WITHCRYPTO

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