Kategorie: Bitcoin News

• Bitcoin fell below $111,000 after Fed Chair Powell’s hawkish comments.
• Powell said a December interest rate cut is “not a foregone conclusion.”
• Major cryptocurrencies like Ethereum, XRP, and Solana also posted losses.

Bitcoin and the wider cryptocurrency market took a sharp downturn after US Federal Reserve Chair Jerome Powell signaled that a highly anticipated December interest rate cut was not guaranteed, reversing market sentiment that had priced in further easing.

The hawkish remarks immediately spooked investors, sending Bitcoin below a key support level and triggering a broad sell-off across digital assets.

While the Fed did deliver an expected quarter-point rate cut, Powell’s commentary on the future path of monetary policy became the dominant driver of the market’s negative reaction.

Powell pours cold water on December rate cut hopes

At the conclusion of the Federal Open Market Committee (FOMC) meeting, Powell announced a 0.25% point reduction in the policy rate to a range of 3.75-4.00%.

However, he quickly tempered market optimism by adopting a cautious stance on future moves, stating a December cut “is not a foregone conclusion.”

Powell explained that the central bank needs more economic data, particularly after the recent government shutdown obscured key indicators.

“We may need to slow the pace of policy (rate) adjustments. I hope to obtain more data by December,” he said at the press conference.

He also revealed a growing divide within the committee.

“More and more Fed members want to delay rate cuts,” Powell continued, adding, “After two consecutive rate cuts, some members are taking a wait-and-see stance.

The view that we should wait at least one cycle is spreading.”

Bitcoin leads broad market plunge

The market’s reaction to Powell’s unexpected caution was swift and decisive.

Bitcoin, which had been trading steadily around the $113,000 level before the press conference, broke below its $110,000 support moments after his remarks, hitting an intraday low in the $109,000 range.

As of Thursday, the token was still struggling around $110,000, down roughly 2% from the previous day.

The weakness was felt across the entire crypto ecosystem.

According to CoinMarketCap, other major cryptocurrencies also posted significant losses:

• Ethereum (ETH) fell 1.93% to $3,899.87.

• XRP dropped 2.74% to $2.53.

• Solana (SOL) declined 1.04% to $192.37.

A silver lining? Fed to end quantitative tightening

However, Powell’s press conference was not entirely hawkish. He also formally announced the end of the Fed’s asset reduction program, known as Quantitative Tightening (QT), which could increase liquidity in the financial system.

“We have decided to end QT as of December 1,” Powell stated. He explained that the Fed’s balance sheet had shrunk by $2.2 trillion over three and a half years.

“We now believe we are close to sufficient reserves,” he said, signaling a shift toward balance sheet normalization.

With Fed in rearview, all eyes turn to US-China summit

With the Fed’s immediate policy path now clarified, investors are pivoting their attention to the next major potential catalyst: the US-China summit.

Following the crypto market plunge, traders are looking to the meeting between US President Donald Trump and Chinese President Xi Jinping as a possible source of positive news that could trigger a rebound.

The high-stakes meeting is scheduled for Thursday morning at the ‘Naraemaru’ facility at Gimhae Airport Air Force base.

The post Crypto update: Bitcoin tumbles below $111K as Powell dashes December rate cut hopes appeared first on CoinJournal.

• The US Fed has cut rates by 25 bps, signaling a softer monetary stance.
• Bitcoin price is down 3% to $111,400 as traders digest the policy move.
• Fed to end the quantitative tightening on December 1.

The cryptocurrency market has seen renewed volatility after the US Federal Reserve announced a widely expected 25-basis-point interest rate cut.

Bitcoin (BTC), Ethereum (ETH), and other altcoins have reacted with mild declines as traders digested the central bank’s decision and its implications for the broader economy and digital asset markets.

Fed delivers another cut amid economic uncertainty

The Federal Reserve reduced its benchmark federal funds rate by a quarter of a percentage point, bringing it down to a target range of 3.75%-4%.

This marks the second consecutive rate cut as policymakers move to support a cooling economy.

The decision, anticipated by nearly all market participants, came amid ongoing concerns over a weakening labor market, a persistent government shutdown, and the scarcity of fresh economic data.

At the post-meeting press conference, Fed Chair Jerome Powell noted that while some key federal data releases have been delayed by the government shutdown, the available public and private sector information suggests that the outlook for employment and inflation has changed little since the September meeting.

Powell also cautioned that another rate cut in December is “not a foregone conclusion.”

While projections released in September had indicated potential reductions in both October and December, Powell emphasized that the December move is not assured, signaling a more data-dependent approach by the central bank.

The Fed also announced it would end its quantitative tightening program on December 1, signaling a gradual shift toward a less restrictive policy stance.

However, not all members of the Federal Open Market Committee agree on how quickly to ease policy.

Some, like Stephen Miran, have argued for a steeper 50-basis-point reduction to accelerate growth, while others — including Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan — advocated caution.

This internal split underscores growing uncertainty over how the Fed will navigate the coming months.

Crypto markets unimpressed as Bitcoin price slips

In the hours following the Fed announcement, Bitcoin price slipped roughly 3% to trade near $111,400, while Ethereum hovered around $4,000, down a similar margin.

The broader crypto market cap stood at $3.86 trillion, after a modest 2.4% drop, with many top assets in the red.

Liquidations across derivatives platforms totaled approximately $560 million, reflecting a brief wave of volatility.

The muted reaction suggests the rate cut had been largely priced in, with traders anticipating the move weeks in advance.

Bitcoin’s weakness, in particular, follows a broader retreat from the all-time high it reached earlier this month.

Despite optimism surrounding lower rates and renewed liquidity, the market remains cautious.

Ethereum and other leading altcoins, including Solana (SOL), XRP, and Binance Coin (BNB), have also registered small daily losses.

Economic backdrop weighs on investor sentiment

Recent data from the Chicago Fed shows unemployment holding near 4.3%, its highest level in four years, while inflation continues to hover around 3%, above the central bank’s 2% target.

The Conference Board’s Expectations Index also remains below levels typically associated with economic optimism, fueling fears of a potential recession.

These signals paint a picture of an economy losing momentum.

With inflation still elevated and job growth softening, the Fed faces a delicate balancing act — supporting growth without reigniting price pressures.

Analysts suggest that if the economy slows further, additional rate cuts could follow before the end of the year.

Markets now await Powell’s next move

Traders will closely watch Powell’s comments for hints about how long the current easing cycle might continue.

Many expect the Fed to maintain a cautious tone while emphasizing flexibility, given the lack of up-to-date economic data due to the government shutdown.

Crypto analysts believe that a sustained move toward lower rates and an eventual halt to balance-sheet tightening could support digital assets in the medium term.

Easier financial conditions tend to encourage risk-taking, and historically, Bitcoin and other cryptocurrencies have benefited when liquidity expands.

Still, near-term volatility is likely.

The Bitcoin price remains sensitive to macroeconomic shifts, and with uncertainty over both monetary policy and the global economic outlook, traders may see further swings before the market finds its next direction.

In the short term, crypto investors are bracing for Powell’s remarks and any signals of further easing.

While lower interest rates can provide relief for risk assets, the path forward remains uncertain — and for now, Bitcoin and altcoins appear content to wait for clearer signs from the Fed’s next move.

The post Bitcoin, altcoins slip as the Fed lowers interest rates by 25 basis points appeared first on CoinJournal.

• Crypto firms offering financial products must obtain an AFSL by 30 June.
• Bitcoin and NFTs are said to be excluded from the financial product category.
• The Treasury has finished consultations on new crypto legislation.

Australia has tightened its regulatory framework for digital assets, introducing updated guidelines that define how crypto service providers will be classified and licensed.

The Australian Securities and Investments Commission (ASIC) announced revisions to its Information Sheet 225.

Firms offering services tied to financial products will now need to apply for an Australian Financial Services License (AFSL) and join the Australian Financial Complaints Authority by June 30.

The updated document aims to streamline compliance requirements, strengthen investor protection, and bring digital asset providers under the same regulatory standards as traditional financial institutions.

This marks a significant shift in Australia’s approach to overseeing crypto-related businesses and ensuring greater market transparency.

The move aims to bring greater oversight to the rapidly evolving crypto industry while maintaining flexibility for tokens like Bitcoin, which will not be treated as financial products under the new guidance.

Bitcoin excluded, but stablecoins under scrutiny

Under the revised guidelines, ASIC clarified that cryptocurrencies such as Bitcoin, gaming non-fungible tokens (NFTs), and tokenised event tickets do not fall under the financial product category.

However, stablecoins, wrapped tokens, tokenised securities, and yield-bearing products like staking services and tokenised real estate will require licensing.

ASIC also confirmed in-principle regulatory relief for stablecoin and wrapped token distributors to help transition into compliance ahead of broader legislative reforms.

The updated framework outlines that services offering financial returns or lock-up periods will be classified as financial products, ensuring investors in yield-based assets are protected under existing finance laws.

Industry welcomes clarity but warns of implementation challenges

The update has been broadly welcomed across the blockchain sector for providing long-awaited clarity.

Industry groups and legal experts said the move provides visibility on ASIC’s approach to regulating the digital asset ecosystem.

However, they warned that the transition could create logistical hurdles due to limited local expertise, banking restrictions, and insurance access.

Blockchain APAC’s CEO noted that ASIC’s approach of implementing policy ahead of final legislation brings short-term certainty but also leaves room for interpretation.

These “structural bottlenecks,” including resource and compliance constraints, could shift risks from legal to operational levels if not addressed promptly.

Transition underway as crypto firms prepare for licensing

Industry players are now restructuring their operations to align with the new rules.

The Digital Economy Council of Australia called the update a significant step toward mainstream regulation but expressed concern about ASIC’s capacity to process a large volume of licensing applications in time.

The move follows the Albanese government’s proposal in March for a unified framework that places crypto exchanges under existing financial services laws.

The Treasury concluded consultations last week on draft legislation that would formalise this transition, further aligning Australia’s crypto oversight with global regulatory trends.

The update marks a turning point for Australia’s digital asset market, setting a roadmap for compliance while signalling the government’s intention to balance innovation with investor protection.

The post Australia tightens crypto rules: check out all the details appeared first on CoinJournal.

• Bitcoin is fighting to close October in positive territory, a key historical signal.
• The month has been highly volatile, with a 13% correction at one point.
• A series of technical indicators are now pointing to a bullish short-term structure.

It has been an up-and-down and often frustrating month for Bitcoin traders, a period of wild price swings that has put the seasonal promise of an “Uptober” rally to a severe test.

Now, with just a few days left in the month, a tense battle is underway as the bulls fight to keep the world’s leading cryptocurrency in positive territory, a goal that could have significant implications for the rest of the year.

Historically, October has been a powerful launchpad for Bitcoin, delivering average gains of more than 20%. But this year has been a different story.

After spiking above $123,000 early in the month, the market was hit by a brutal 13% correction that saw prices plummet to $107,000.

Since then, the bulls have been in a grinding, hard-fought recovery, with the price currently hovering around $115,000, a meager 1.14% gain for the month.

A powerful macro tailwind provides support

This fragile recovery is being supported by a powerful macroeconomic tailwind.

Traditional markets are firing on all cylinders, with the S&P 500 hitting fresh record highs as investors confidently price in a quarter-point interest rate cut from the Federal Reserve this week.

This dovish monetary policy, combined with an easing of US-China trade tensions, has propelled a “risk-on” sentiment that typically benefits assets like crypto.

Adding another layer of support is a renewed wave of institutional interest.

Spot Bitcoin ETFs have now recorded their third consecutive day of inflows, a clear signal of conviction from the market’s larger and more influential players.

The view from the charts: a bullish structure takes shape

A deep dive into the technical charts reveals a bullish short-term structure that suggests the path of least resistance is now to the upside.

The Average Directional Index (ADX), a key measure of trend strength, is sitting at a strong 32.14, a reading that suggests the current upward momentum is likely to persist.

At the same time, the Squeeze Momentum Indicator is flashing a “bullish Impulse,” a high-probability signal that directional movement to the upside is just beginning.

The Ichimoku Cloud analysis also shows Bitcoin trading above the clouds, another classic indicator of trend continuation.

The final hurdle: a pivotal Fed decision

While the technical and macro pictures are aligning in favour of the bulls, a major and binary risk event looms on the horizon: the Federal Reserve’s policy announcement on Wednesday.

While the market is pricing in a 25-basis-point cut, any hawkish language about the future path of interest rates could easily trigger a wave of short-term volatility.

The key for the bulls will be whether Bitcoin can maintain its critical support above the $114,000 level through any Fed-related turbulence.

If it can, then this “Uptober,” while not as explosive as many had hoped, may still end in the green, setting the stage for a potentially powerful final two months of the year.

The post Battle for a green month: Can Bitcoin hold its gains as ‘Uptober’ comes to a close? appeared first on CoinJournal.