• Bitcoin (BTC) prices were flat over the past 24 hours as U.S. stocks sold off due to fears that the Federal Reserve may need to keep tightening monetary policy longer than expected.
• Ether (ETH) was trading around $1,223, up 0.82%. The CoinDesk Market Index was up 0.5%.
• Messari’s Ryan Selkis in a report on his 2023 predictions wrote the market’s direction is „still all about macro and regulation.“
Bitcoin prices have been largely flat over the past 24 hours, as U.S. stocks sold off on the back of strong economic data that has caused investors to reconsider expectations that the Federal Reserve will pivot anytime soon to a more dovish monetary policy. The fear is that the central bank will need to keep tightening monetary policy longer than expected, which has put downward pressure on risky asset prices all year.
The largest cryptocurrency by market volume, Bitcoin (BTC), was trading above $16,800, down just 0.01% over 24 hours. Ether (ETH), the second largest, was trading around $1,223, up 0.82%. The CoinDesk Market Index was up 0.5%, indicating a slight increase in prices.
Messari’s Ryan Selkis, in a 168-page report on his 2023 predictions, wrote the market’s direction is „still all about macro and regulation.“ He said that the resting market sentiment is that there will be a recession in 2023, although there is debate over its potential magnitude. Selkis added that the market also seems to trust that central banks will continue to tighten until inflation is under control, although there are some investors who think it’s more likely that the Fed will pivot once the recession reaches its peak.
In addition to the economic data, crypto traders are also keeping an eye on the Central Bank of Indonesia’s white paper on the development of the country’s central bank digital currency (CBDC), which envisions a world with a government-sanctioned payment layer.
Overall, it appears the market is still holding out for the Fed to make a move before the end of the year, and the price of Bitcoin is likely to remain relatively flat until then.