Crypto traders are optimistic about the Fed skipping a rate hike, which would likely fuel the cryptocurrencies’ bull run. According to Edward Moya, a Senior Market Analyst with OANDA, a cooling inflation report is igniting this optimism. Wall Street appears hopeful that the Fed may decide to forgo a rate hike on Wednesday and pause its tightening policy in July. Moya notes that Bitcoin remains stable around the $26,000 level as investors consider reducing altcoin exposure and increasing Bitcoin holdings.
Though one key Bitcoin technical analysis indicator, the moving average convergence divergence (MACD), has flipped bearish, signaling a possible extended price slide, analysts at CoinDesk believe U.S. inflation figures and the Fed’s possible rate hike skip could also impact Bitcoin’s price performance.
On the regulatory front, Hong Kong’s cryptocurrency rules, which were initially expected to attract exchanges, are proving less appealing than anticipated. For example, the Securities and Futures Commission mandates a 12-month cooling-off period between token launches and listings. Stablecoins, crypto derivatives, earn or lend programs, and staking services are also banned, with airdrops being a significant no-go.
Leo Weese, co-founder and President of the Bitcoin Association of Hong Kong, argues that Hong Kong’s framework is highly unattractive due to factors such as a small and unproven market, nonexistent banking partnerships, and highly restricted products. He notes that the Asian markets are fundamentally different from their Western counterparts and that companies like Coinbase would not automatically succeed even if they were willing to forfeit their current customer base.
Although Hong Kong has the advantage of not requiring certain tokens to be registered as securities, Weese points out that relocating to Hong Kong would not automatically protect Coinbase from U.S. regulations or the SEC’s jurisdiction. Companies like BitMex and Binance have faced U.S. regulatory actions despite their distant ties to the country.
In summary, while the path is unclear for cryptocurrency exchanges like Coinbase to find a suitable location to thrive, the more pressing factor affecting the market at presents seems to be the Fed’s upcoming decision to potentially skip a rate hike. Traders and investors alike are eagerly anticipating how this decision could impact the crypto market.
Source: Coindesk
