Main Takeaway: Markets Stop Recent Multiple-Day Slump
Crypto markets are up about a percentage point d-o-d, as finally, the beatdown slows down before the US Fed raises interest rates on Wednesday. Over recent days, there’s been a slew of liquidations, in particular, when Bitcoin fell below $19,00 approximately $29 million dollars in Bitcoin longs were liquidated. Another liquidation cluster is in the $17,000 range. Ethereum had liquidations that reached much higher than Bitcoin as its price dropped to a 2-month low.
The main takeaway is crypto markets will get more clarity on Wednesday morning when the Fed announces another rate hike. A 100 bps rate hike will surely bring markets down significantly, while 75 may already be priced in, bringing short-term relief, but still long-term tightening of risk assets.
Key Stories: Is The SEC Clarifying Its Position Towards Ethereum?
The SEC is making a renewed push to claim jurisdiction and legal authority over certain cryptocurrencies (PoS ones), with Ethereum now in its sights. The SEC has recently filed many lawsuits (against crypto advisory firms) as well as a crypto influencer named Ian Balina, and in the lawsuit, there’s language claiming that because the majority of Ethereum nodes are located in the US, the SEC, therefore, has jurisdiction over the entire network. However, this lawsuit won’t bring to bear anything against Ethereum, however, it will mainly be a signaling move to insert the SEC’s opinion towards the cryptocurrency for legal action and positioning down the road.