Today’s News Summary about Crypto 22.3.2023

Bitcoin’s price has been hovering around the $28,000 mark, with a modest increase on Wednesday. However, experts anticipate significant fluctuations in its value, either rising to $30,000 or dropping to $25,000, depending on the Federal Reserve’s forthcoming announcement regarding interest rates. The market expects a quarter-point rate hike, as suggested by the CME FedWatch tool. Oanda’s senior analyst, Edward Moya, believes that a 5% price movement in either direction is likely, depending on the Fed’s decision. Bloomberg’s senior commodity strategist, Mike McGlone, hinted at a potential “super-cycle” for cryptocurrencies, with Bitcoin significantly outperforming gold, the traditional top-performing commodity.

In a recent report, the White House criticized cryptocurrencies, suggesting that multiple aspects of the digital asset ecosystem pose problems for consumers, the financial system, and the environment. The Economic Report of the President, released on Monday, is an annual document produced by the Council of Economic Advisers to outline the president’s economic agenda and policies. The March edition dedicated an entire chapter to digital assets and their underlying economic principles. The report’s negative tone adds to the growing concerns within the industry that federal regulators may attempt to restrict crypto companies’ access to banking services, despite regulators denying such claims thus far.

Ark Invest, a growth investment firm headed by Cathie Wood, sold 160,887 Coinbase (COIN) shares valued at $13.5 million on Tuesday. During the so-called “crypto winter,” Ark Invest had acquired multiple Coinbase shares, which subsequently experienced an 86% decline in value last year, underperforming both Bitcoin and Ethereum. Earlier in March, Ark Invest had added over 350,000 Coinbase shares to its portfolio, amounting to a $22 million investment.