- On Wednesday, the crypto market cap slid by $34.19 billion to $1,120 billion.
- Fed Chair Powell sent the crypto market south on the talk of a credit crunch and a continued commitment to bringing inflation to target.
- The SEC was also in action as US lawmakers and the US Government retargeted the digital asset space after a banking crisis-fueled lull.
Crypto Market Sinks on Fed Chair Powell Press Conference
On Wednesday, the crypto market gave up afternoon gains as investors responded to the Fed interest rate hike, FOMC Projections, and the Fed Chair Powell press conference.
The Fed raised interest rates by 25 basis points, in line with market expectations, with the FOMC projections signaling a peak rate of 5.1%, unchanged from December. However, an upward revision to the 2024 median cash rate delivered a hawkish tone.
Fed Chair Powell weighed on riskier assets, with the talk of a looming credit crunch stemming from the banking crisis. While Powell spoke of the Fed’s commitment to bring inflation to target, the Fed Chair insinuated a likely pause in policy moves to assess the impact of the banking crisis on the US economy and policy.
The crypto market tracked the NASDAQ Composite Index into the red. On Wednesday, the NASDAQ ended the day with a 1.60% loss.
This morning, the crypto market was up 1.30% to $1,134 billion, with the NASDAQ mini gaining 91.75 points.
XRP Holds Steady on Hopes of a Ripple Victory in the SEC v Ripple Case
On Wednesday, XRP tumbled by 9.87% to end the day at $0.42218. XRP was the worst performer of the top ten, with investors locking in profits from a breakout Tuesday.
However, XRP was back on the move this morning, rising by 2.08% to $0.4312.
Increasing optimism of a Ripple win in the ongoing SEC v Ripple case has put XRP back in the limelight.
Overnight, Ripple President Monica Long spoke to CBNC, saying the facts and the law are on their side and sees a favorable outcome to the SEC v Ripple case. The Ripple President also talked about Ripple’s expansion outside of the US.
SEC Targets Coinbase for Breach of Securities Laws
Overnight, news hit the wires of the Securities & Exchange Commission (SEC) warning Coinbase (COIN) of possible breach of securities laws charges. The SEC sent a Wells Notice to Coinbase .
The company reportedly stated,
“Based on discussions with the Staff, the Company believes these potential enforcement actions would related to aspects of the Company’s spot market, staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.”
Coinbase shared declined 8.16% to $77.14 in regular trading hours and extended losses during after-hours trading to $64.95.
The crypto industry is well versed with the SEC use of Wells Notices as the SEC continues to regulate by enforcement.
Telegram Announces Tether USD Payment Support on Tron
This week, stablecoins went more mainstream, with messaging app giant Telegram announcing that users can transfer Tether (USDT) via chat. While USDT runs on several prominent blockchains, Telegram will initially support USDT on Tron (TRX).
SEC Takes Aim at Tron’s Justin Sun for Securities Law Breaches
Tron’s Justin Sun hit the news for the wrong reasons this week. The SEC has charged Justin Sun with breaches of US securities laws for selling unregistered crypto assets securities.
The SEC alleges Sun and three companies, BitTorrent, Rainberry Inc., and Tron Foundation, sold TRX and BTT without registering them as securities.
According to the SEC press release, the SEC has also charged Sun and the companies with fraudulently manipulating the secondary market for TRX through extensive wash trading.
On Wednesday, TRX tumbled by 11.29% before finding support from the broader crypto market. This morning, TRX was up 3.86% to $0.06214.
This article was originally posted on FX Empire
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