Connect with us

Blockchain

Bitcoin Tumbles As Fed Opts For Restrictive Rates

Avatar Of Rajesh Khanna

Published

on

Bitcoin Tumbles As Fed Opts For Restrictive Rates
google news

The price trend for Bitcoin seems to be moving with the set rates of the US Federal Reserve. BTC plunged shortly after the Federal Reserve’s July meeting. However, from the minutes released on Wednesday, August 17, policymakers had discussed more interest rate hikes to fight inflation.

They deliberated on the need for checkmate borrowing costs by increasing rates which could restrict the country’s economic growth. By that, they could have the required time and influence in controlling potential inflation.

It’s not surprising to see the recent performance of cryptocurrency following the news of the Fed’s plans. The assets are pretty sensitive to such changes. For instance, the market saw crypto value halving as the central bank implemented its tightening cycle in March.

BTC price data showed a drop of about 2%. This dip went below its high performance from the lows of both July 15 and July 26. With the dramatic appearance of the bears in the BTC market, deliberations are high on different platforms about a possible sell-off.

The crypto market has become more vulnerable to the possibility of a further increase in rates and the US restrictive policy. As a result, there could be more spikes of volatility which could confuse the crypto market.

Furthermore, the move acts against the current market pricing and anticipation for more cuts in the interest rates in 2023. Also, the price of BTC had surged impressively to hit a two-month high of above $25,200.

Reactions To Fed And Spike In Bitcoin Interest Rates

A Decentral Park Capital researcher, Lewis Harland, noted that the rates move to affect Bitcoin adversely. He mentioned that the Fed consistently handles inflation even as the costs contract the economy.

Also, Michael Kramer of Mott Capital Management observed that there’s no hope for Fed fund futures traders, that the central banks would switch to rate cuts in 2023.

They expected that once the rate peaked at around 3.7% by March, it would stall till ending of 2023. However, the central bank increased the rate by 75 basis points last month. It now sits between 2.25% to 2.5%.

The price of Bitcoin is slightly recovering today as it hovers around $23,500 against its low of $23,180 on Wednesday. However, despite the small gain, the value of BTC is still below the supportive level during its rising trendline.

Bitcoin is trading sideways on the chart l Source: BTCUSDT on TradingView.com

There are reactions from observers that have come across the Fed minutes. For example, a former Fed trader, Joseph Wang, declared that it’s hawkish.

In his observation, the transcript also expresses concerns about the implications of excessive tightening while managing inflation. But, on the other hand, policymakers also advised to create normalcy by slowing the rate at certain levels.

Featured image from Pixabay, Charts from TradingView.com

google news
Advertisement

Blockchain

CertiK Uncovers Suspicious $2.4M Payments Into Tornado Cash

Avatar Of Rajesh Khanna

Published

on

Certik Uncovers Suspicious $2.4M Payments Into Tornado Cash
google news
  • The money movement is linked to the October 2021 BXH Exchange breach.
  • GitHub reinstated the Tornado Cash code in “read-only” mode.

On Saturday, crypto security company CertiK said that it had uncovered a suspicious $2.4 million payment into the cryptocurrency mixer Tornado Cash. Information suggests the money movement is connected to the October 2021 BXH Exchange breach. It resulted in a loss of $139 million. Although the U.S. Treasury’s Office of Foreign Asset Control (OFAC) has placed sanctions on the crypto mixer. However, the exchange is still being used to move money.

The theft of over 4,000 ETH worth $139 million from the BXH Exchange at the end of October is likely connected to the transfer of funds.

Hackers Defying Sanctions

The address 0x158F5 is held by a third party and used the Binance Smart Chain and Avalanche staking contract’s privileged method to retrieve staked tokens and withdraw cash. The tokens were then transferred to Ethereum using the address.

CertiK reports that the staking contract holding the funds and locations was previously released by a Telegram group formed by persons affected by the BXH Exchange. Tokens with a bridging ERC-20 standard were converted to ETH at the address in question. To date, almost $2.4 million in value has been transferred into Tornado Cash, represented by 1865 ETH tokens.

Even after the Office of Foreign Asset Control at the U.S. Treasury banned suspicious transactions on Tornado Cash in August, the service is still accepting them. The crypto mixer platform has just received a transfer of 500 thousand DAI from EOA 0x0B789. The money transfer was associated with an exploit in DAO Maker.

After receiving confirmation from the Office of Foreign Asset Control of the United States Treasury, GitHub reinstated the Tornado Cash code in “read-only” mode.

Recommended For You:

Tornado Cash Back on GitHub Despite Sanction by U.S

google news
Continue Reading

Blockchain

Whale Alert: 270 Million XRP ($130M) Bought by Whales

Avatar Of Rajesh Khanna

Published

on

Ripple (Xrp) Price Jumps To New Four-Month High
google news
  • The largest ever buy was on the Bitso crypto market for 54.1 million XRP.
  • XRP prices have increased by around 50% during the last week.

The native XRP token of Ripple has seen the most growth over the previous seven days. While Bitcoin and Ethereum have both had big price declines recently, XRP has seen a sharp increase. The current price increase of XRP may be attributed to a number of factors. Whales hoarding Ripple tokens is one instance.

Tokens worth around $130.2 million in XRP, almost 270M XRP have been transmitted from several cryptocurrency exchanges to many unknown addresses in the past 24 hours, according to data from Whale Alert. The largest ever buy was on the Bitso crypto market for 54.1 million XRP. Approximately $27.5 million worth of XRP coins were purchased by Whale all at once.

High Volatility Expected After Judgement

However, whales have been buying up XRP on the Bitstamp platform to the tune of nearly $84.1 million. To their XRP holdings, whales have just added more than $41.4 million over many trades. Meanwhile, a massive transaction involving 132 million XRP (about $62.1 million) was also spotted by the whale tracker.

Since the SEC and Ripple submitted their summary judgement papers, there has been a dramatic increase in the whale stockpiling of XRP tokens. The current increase was caused by new court documents. It also noted a surge in the number of active addresses holding between 1 and 10 million XRP tokens in late 2022.

On the other hand, XRP prices have increased by around 50% during the last week. Since word of the case’s resolution circulated favorably across the market, this is the result. At this moment, the price of XRP is $0.5015 as per CMC.

Recommended For You:

XRP Investors Optimistic Following Summary Judgement Filing

google news
Continue Reading

Blockchain

California Governor Vetoes Crypto Regulation Bill

Avatar Of Rajesh Khanna

Published

on

Following Aftermath Of Recent Slump Bitpanda Announces Workforce Layoff
google news