BTC Bulls Eye a Return to $26,500 on Fed Pause Bets

Bitcoin (BTC) increased by 0.06% on Tuesday. BTC lost 0.08% on Monday and finished the day at $25,948. Notably, BTC finished the day below $26,000 for the fourth straight session.

BTC experienced a positive morning before reaching a high of $26,455 in the middle of the day. Both the First Major Resistance Level (R1) and the Second Major Resistance Level (R2) were breached by BTC at $26,161 and $26,390, respectively.

However, the reversal caused BTC to fall to a low of $25,744 in the late afternoon. BTC found late support to conclude the day at $25,948, avoiding the First Major Support Level (S1) at $25,668.

NASDAQ Decoupling Keeps Going Prior to the Fed's Policy Decision

Tuesday was a very busy day. Before the cryptocurrency market went into reverse, the crucial US CPI Report resulted in a high for the BTC session.

Compared to an anticipated 4.1%, the US annual inflation rate decreased from 4.9% to 4.0% in May. Inflation in the core measure decreased from 5.5% to 5.3%.

Bets on the Fed raising rates by 25 basis points in June fell as a result of the inflation data, according to the CME FedWatch Tool. The likelihood of an interest rate increase of 25 basis points in June decreased from 20.9% to 4.6%, while the likelihood of an increase of 50 basis points in July decreased from 14.0% to 2.9%.

The likelihood of a 25-basis point raise in July, however, climbed from 59.9% to 60.9%, which caused the post-CPI Report reversal.

In response to Fed bets, the NASDAQ Composite Index increased by 0.83% on Tuesday, while the Dow and S&P 500 also saw increases of 0.43% and 0.69%, respectively.

Despite declining Fed anxiety, cryptocurrency market sentiment declines

Despite their coverage of the iconic William Hinman speech-related materials connected to the SEC v. Ripple case, the crypto news wires did not offer any assistance.

The SEC also showed on Tuesday that it was unwilling to provide regulatory clarification. In response to the SEC's response to Coinbase's petition for rulemaking, Chief Legal Officer of Coinbase (COIN) Paul Grewal stated that the SEC had "repeated the fallacy that they haven't made any decision on new crypto rules; 2) they have refused to commit to any deadline despite the Court's explicit order; 3) they instead "anticipate" making a "recommendation" in 120 days; and, most importantly, 4) they have ignored the Chair'

The Coinbase v. SEC case, not the SEC filing against Coinbase from last week, is the subject of the SEC's silence.

The SEC's stance highlights for the larger crypto industry the difficulties facing enterprises related to cryptocurrencies and the dangers of forming in a country without clear regulatory standards.

According to Cornerstone Research, the number of SEC enforcement proceedings relating to cryptocurrencies grew by 50% to 30 enforcement actions in 2022. Notably, as of the end of 2022, fines levied against businesses connected to digital assets totaled over $2.61 billion, $242 million of which came from settlements.

Similar difficulties in the SEC v. Binance case are most likely for Binance. Without the intervention of US lawmakers, a protracted battle might put the US cryptocurrency sector in limbo.