What did the Fed say at its first meeting of the month?

Market situation

Bitcoin was still around the $ 61,000 to $ 63,000 threshold yesterday. Bitcoin plunged from $ 63,000 to $ 61,000 in a minute and then bounced back. Many altcoins rose and hit new highs like ETH, SOL, … Coin SOL surpassed ADA in terms of capitalization to 4th place.

Profitable BTC is still over 95%, but a stake on CryptoQuant shows that BTC has not yet peaked this season.

The above stock shows signs that BTC is peaking and investors need to be careful. When BTC shot up and the funding rate soared. Add to this a sign of profit-taking by long-term investors, which is a sign that BTC has peaked.

There will be profit-taking during the bull season and the elephants will be scared of selling and buying BTC. It looks like the funding rate has increased, but not as high as in April this year. And long-term investors are showing no signs of heavy profit-taking and BTC continues to be withdrawn from the exchange more than the amount deposited.

In the past few days, ETH has continued to be withdrawn from the stock exchange despite a new high. Recently, Goldman Sachs predicted that ETH could hit a price of $ 8,000. The ETH is also increasingly being supported by institutional investors.

The mutual funds they count on raised $ 288 million into the crypto market in the week ending October 29, according to a Coinshare report. Most of the inflows are still BTC, followed by ETH, Solana, Cardano and Polkadot.

Fed continues to keep interest rates low, and many MPs are putting pressure on the SEC

After the meeting in early November, the Fed announced that it would leave interest rates unchanged and gradually reduce bond purchases, the first step in withdrawing aid to the US economy. The Fed continues to report that inflation and price increases are “pretty big” but still “temporary”. While the epidemic has had an impact, stocks or real estate in the United States are hitting record highs so far.

The US market is most interested in interest rates that remain low, which is a factor that stimulates borrowing, and that cash flow continues to flow into investments in real estate, stocks, businesses, …

Congressman Ted Cruz shared a text suggesting that grocery and souvenir companies should accept crypto payments in the National Assembly. Since the majority of Congressmen don’t understand crypto, it will help U.S. Congressmen and the government better understand crypto.

Recently, the SEC asked Direxion to withdraw the Bitcoin Bear ETF application in order to sell Bitcoin futures. The SEC also didn’t accept a leveraged Bitcoin ETF last week. The SEC is not ready for more and is delaying both the BTC short ETF and the real BTC-based BTC ETF.

In response to the reasoning that the SEC did not approve the Bitcoin Spot ETF to protect investors, two congressmen sent a letter showing the contradiction in the reasoning. Congressmen Tom Emmer and Darren Soto expressed their support for approving Bitcoin spot ETF trading.

The two argued that the Bitcoin Future ETF was riskier than conventional Bitcoin ETF trading. Why did the SEC want to protect investors and let the Bitcoin Future ETF pass first?

Since Bitcoin is subject to great price fluctuations and fluctuations, the Bitcoin Future ETF on CME also updates the prices according to regular crypto exchanges such as Coinbase, Kraken, Bitstamp. How can the BTC Future ETF fund protect investors? Based on the arguments above, the two congressmen suggested that the SEC should soon approve a bitcoin-based bitcoin spot ETF.

Other pro-BTC MPs like Synthia Lummis also said they believe that BTC is the digital gold and asset of the future, part of the financial market. Following in the footsteps of the Mayor of Miami, the new Mayor of New York City, Eric Adam also said he wanted to make New York a crypto-friendly city.

US politicians’ support for both BTC and crypto is growing. They also realize that if the US doesn’t accelerate the adoption of crypto, they will be left behind.

BTC was also accepted by leading banks in the US and started offering crypto services to their customers.

Other information:

• Commonwealth Bank, Australia’s largest bank, is planning to integrate cryptocurrency into their digital app. According to the announcement, the bank will also be able to conduct public transactions with Gemini, a U.S. exchange, and Chainalyis, a blockchain analytics firm, both of which will play a supporting role in integrating the exchange.

• Wall Street-based investment bank Morgan Stanley has released a detailed report on Bitcoin and crypto assets for its wealth management clients.