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Crypto Market Daily Highlights: ETH Avoids an SEC and Fed-Fueled Slide
Due to governmental monitoring, the cryptocurrency market dropped on Thursday for the third straight day. US CPI data and FOMC chitchat will be influential today.
The top ten cryptocurrency index had a split morning on Thursday. While MATIC led the road down, ETH defied the negative pattern. Bitcoin is now trading below $24,000 for the first time in seven days following the lackluster session.
The NASDAQ Composite Index and US economic indexes supported the afternoon's trading. The US GDP grew by 2.7% in Q4 as opposed to the preliminary 3.2%. Economic experts expect growth to be 2.9%. Initial unemployment claims decreased from 195k to 192k, but labor market circumstances tightened nonetheless. Analysts predict a 200k rise.
The results and company profits caused the NASDAQ Composite Index to increase by 0.72%.
The NASDAQ, however, fell short of producing a positive crypto session as growing regulatory surveillance dampened investor interest.
Evidence for Crypto-Scrutiny Buying Attitude
The US Federal Reserve published a statement on Thursday outlining the dangers of trading in cryptocurrencies and commodities connected to cryptocurrencies. "Certain sources of funding from crypto-asset-related entities may pose heightened liquidity risks to banking organizations due to the unpredictability of the scale and timing of deposit inflows and outflows," the Fed said in a statement highlighting liquidity risks associated with funding sources from entities related to cryptocurrencies.
The security of such accounts (stablecoin-related reserves) may be correlated with stablecoin demand, stablecoin users' trust in the stablecoin structure, and the stablecoin issuer's reserve management procedures, according to the Fed, which joined the SEC in focusing on stablecoins. Such accounts are vulnerable to significant and swift withdrawals caused by, for instance, unexpected stablecoin redemptions or fluctuations in the marketplaces for digital assets.
The IMF also provided its perspective on the digital asset market as the US Department of Justice, the SEC, and the CFTC increased their crypto monitoring operations. A document named Components of Successful Strategies for Digital Securities was published on Thursday by the IMF.
The IMF intends to "handle concerns by Fund members on how to react to the growth of digital assets and the related dangers," according to the document.
News of the SEC and the New York Department of Financial Services (NYDFS) complaining to Binance came as the cryptocurrency market came under greater examination.
The US buying Situation was also unfavorable. Binance. The US's intentions to purchase Voyager helped reduce the danger of a pandemic at the end of 2022.
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