Fundamental Development:-
Stable coins highlight ‘structural fragilities’ of crypto — Federal Reserve
The Federal Reserve’s board of governors pointed to stable coins as a potential risk to financial stability amid a volatile crypto market. In its Monetary Policy Report released on Friday, the board of governors of the Federal Reserve System said “the collapse in the value of certain stable coins” — likely referring to Terra USD Classic (USTC) becoming unpaged from the United States dollar in May — in addition to “recent strains” in the digital asset market suggested “structural fragilities.” The government department pointed to the President’s Working Group on Financial Markets report from November 2021, in which officials said legislation was “urgently needed” to address financial risks.
Short Term Technical View: On daily time frame BTC is trading below 200&50 simple moving averages and trading between $20400-$19600 ranges. BTC is made low $19,650 and now consolidating within a range. Yesterday it made high near $20,800 and then it continue to decline. Bitcoin is struggling to gain momentum above $20,800.
Alternative Scenario: If Bitcoin fails to clear the $20,800 resistance zone, it could start another decline. An immediate support on the downside is near the $19,200 level.
Stable coins highlight ‘structural fragilities’ of crypto — Federal Reserve
The Federal Reserve’s board of governors pointed to stable coins as a potential risk to financial stability amid a volatile crypto market. In its Monetary Policy Report released on Friday, the board of governors of the Federal Reserve System said “the collapse in the value of certain stable coins” — likely referring to Terra USD Classic (USTC) becoming unpaged from the United States dollar in May — in addition to “recent strains” in the digital asset market suggested “structural fragilities.” The government department pointed to the President’s Working Group on Financial Markets report from November 2021, in which officials said legislation was “urgently needed” to address financial risks.
Short Term Technical View: On daily time frame BTC is trading below 200&50 simple moving averages and trading between $20400-$19600 ranges. BTC is made low $19,650 and now consolidating within a range. Yesterday it made high near $20,800 and then it continue to decline. Bitcoin is struggling to gain momentum above $20,800.
Alternative Scenario: If Bitcoin fails to clear the $20,800 resistance zone, it could start another decline. An immediate support on the downside is near the $19,200 level.