Bitcoin Drops Below $30K Following 25 Basis Point Interest Rate Increase by US Federal Reserve: Weekly Crypto Summary

While the majority of prices in the cryptocurrency market have exhibited significant levels of stagnation over the past week, there were still several noteworthy developments across various areas.

Beginning with US regulations, this week featured discussions surrounding a few distinct bills, including the Financial Innovation and Technology for the 21st Century Act, which Democrats asserted still “reeks” of Sam Bankman-Fried – the disgraced former FTX executive who was one of its primary advocates. Conversely, Republicans expressed dissatisfaction that the stablecoin legislative proposal also did not succeed.

Another significant topic emerging from the States was the FOMC meeting held on Wednesday. The Federal Reserve was anticipated to raise the key interest rates by 25 basis points after not doing so in the prior meeting.

Typically, such actions result in increased volatility for bitcoin and the broader market, but this was not observed on Wednesday. The leading cryptocurrency did not experience a favorable week regarding price movement, as it was unable to stay above $30,000 during the weekend and has not surpassed that threshold since. Additionally, it recorded a monthly low below $29,000 on Monday.

Noteworthy news emerged from Twitter as the owner – Elon Musk – revealed a rebranding and a logo change to “X.” He also suggested the possible integration of Dogecoin, which propelled the meme coin’s price to a three-month high during the week.

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Nonetheless, most crypto assets experienced declines over the past week, with GALA, Injective, Mantle, and PEPE leading the negative trend with double-digit price reductions. Ripple’s native token, along with Bitcoin SV, also recorded 7-day drops of approximately 8%.

Market Data

Market Cap: $1,230B | 24H Vol: $32B | BTC Dominance: 46.3%

BTC: $29,281 (-1.6%) | ETH: $1,869 (-1%) | BNB: $241 (-1.1%)

This Week’s Crypto Headlines You Can’t Miss

4 Issues With Sam Altman’s Worldcoin, According to Vitalik. This week marked the highly anticipated launch of Worldcoin, but the project encountered increased scrutiny regarding centralization and a potential lack of privacy. Ethereum’s Vitalik Buterin also commented on the situation, outlining his four concerns with it.

KuCoin CEO Addresses Allegations of Mass Layoffs. Earlier this week, reports surfaced that the well-known exchange was planning to reduce its workforce by 30%. KuCoin’s CEO promptly responded to the rumors, stating that the layoffs would be based on performance evaluations, not internal issues.

Binance Officially Seeks Dismissal of CFTC’s Case. Following a week of speculation, the world’s largest crypto exchange, along with its CEO, filed to dismiss the lawsuit brought by the US CFTC, asserting that the regulator lacked jurisdiction over Binance and CZ.

Coinbase CEO Brian Armstrong Advocates for Support of FIT21. In line with the previously mentioned FIT21 bill, Coinbase’s CEO encouraged US citizens to vote “yes” on it, despite it being just the initial step among many required for regulatory clarity in the States.

Federal Reserve Increases Rates Again By 0.25%, Bitcoin Remains Steady. As previously noted, the US Federal Reserve resumed its policy of raising interest rates. The latest 25 bps increase, however, did not lead to immediate price fluctuations for BTC.

Bitcoin Correlation With US Equities at 2-Year Low, Possible Bullish Indicator? On-chain data from Kaiko indicated that the positive correlation between several major US stock market indexes and BTC has fallen to a 2-year low, which some have speculated could serve as a potential bullish indicator for the cryptocurrency.

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