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Federal Reserve’s Powell Says Stablecoins Risk “High-Level Focus”

Republished by Plato

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Federal Reserve’s Powell said that stablecoins risk a “high-level focus” reiterating today in a webinar that the central bank will take a careful look at stablecoins and their effects. In today’s crypto news, we are reading more about it.

Federal Reserve’s Powell, said that “stablecoins are at a “high-level focus” for the central bank. Powell said that the FED is mainly concerned about the financial risks that stablecoins pose and Central Bank Digital currencies are also on the FED radar. Powell said in a webinar that providing “regulatory answers” for stablecoins is a “high-level focus” for the central bank. He continued:

 “We’ve been very focused… on potential regulatory answers for global stablecoins, in particular. So that’s been a high-level focus, and that will continue to be a high-level focus because they could become systemically important overnight and we don’t begin to have, you know, our arms around the potential risks and how to manage those risks, and the public will expect we do and has every right to expect that… It’s a very high priority.”

fed chair
FED CHAIR JEROME POWELL SPEAKING AT JACKSON HOLE. IMAGE YOUTUBE

Christine Lagarde from the European Central Bank shares a similar view and she also published an op-ed that warned that stablecoins if they get widely adopted could threaten financial stability and monetary sovereignty in the world. Other global financial bodies like G20 and G7 expressed similar concerns. Powell didn’t go into much detail about how the FED plans to approach stablecoins in the future but his tone suggested that these private digital currencies are on the bank’s radar.

Regarding CBDCs, Brunnermeier asked if Powell was interested in waiting to see how they performed in the smaller countries before experimenting with a digital version of the US dollar. Powell explained that there’s no reason that the US has to be first in everything:

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 “Since we are the world’s reserve currency, we actually think we need to get this right, and we don’t feel an urge or need to be first. We effectively already have a first mover advantage, because we’re the reserve currency.”

China is now rushing to build its own CBDC while Japan, France, Thailand, and South Korea are all exploring their options.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/regulation/federal-reserves-powell-says-stablecoins-risk-high-level-focus/

Blockchain

Federal Reserve’s Powell Says Stablecoins Risk “High-Level Focus”

Republished by Plato

Published

on

ADVERTISEMENT

Federal Reserve’s Powell said that stablecoins risk a “high-level focus” reiterating today in a webinar that the central bank will take a careful look at stablecoins and their effects. In today’s crypto news, we are reading more about it.

Federal Reserve’s Powell, said that “stablecoins are at a “high-level focus” for the central bank. Powell said that the FED is mainly concerned about the financial risks that stablecoins pose and Central Bank Digital currencies are also on the FED radar. Powell said in a webinar that providing “regulatory answers” for stablecoins is a “high-level focus” for the central bank. He continued:

 “We’ve been very focused… on potential regulatory answers for global stablecoins, in particular. So that’s been a high-level focus, and that will continue to be a high-level focus because they could become systemically important overnight and we don’t begin to have, you know, our arms around the potential risks and how to manage those risks, and the public will expect we do and has every right to expect that… It’s a very high priority.”

fed chair
FED CHAIR JEROME POWELL SPEAKING AT JACKSON HOLE. IMAGE YOUTUBE

Christine Lagarde from the European Central Bank shares a similar view and she also published an op-ed that warned that stablecoins if they get widely adopted could threaten financial stability and monetary sovereignty in the world. Other global financial bodies like G20 and G7 expressed similar concerns. Powell didn’t go into much detail about how the FED plans to approach stablecoins in the future but his tone suggested that these private digital currencies are on the bank’s radar.

Regarding CBDCs, Brunnermeier asked if Powell was interested in waiting to see how they performed in the smaller countries before experimenting with a digital version of the US dollar. Powell explained that there’s no reason that the US has to be first in everything:

ADVERTISEMENT

 “Since we are the world’s reserve currency, we actually think we need to get this right, and we don’t feel an urge or need to be first. We effectively already have a first mover advantage, because we’re the reserve currency.”

China is now rushing to build its own CBDC while Japan, France, Thailand, and South Korea are all exploring their options.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/regulation/federal-reserves-powell-says-stablecoins-risk-high-level-focus/

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Blockchain

Litecoin Price Analysis: 17 May

Republished by Plato

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The Bitcoin price faced strong volatility due to which the price has once again crumbled under $50k. This strong volatility has spread to the altcoin market and the digital silver, Litecoin [LTC], was among those alts affected. The Litecoin price slipped by 21% over the weekend and was trading at $286 with a market capitalization of $18.97 billion.

Litecoin four-hourly chart

Source: LTCUSD on TradingView

The above chart of LTC shows the strong upward march of the digital asset to $413.65 this month, after which began its descent. The coin has now slipped by almost 30% and was seeing a bearish pressure. This bearishness could result in its value stumbling further.

Reasoning

The market was open to more volatility and this was indicated by Bollinger Bands. The divergence of the bands was suggesting that the price has been moving more rapidly than before and may continue to do so. Meanwhile, the signal line was hovering above the candlesticks highlighting the downward trending price.

The rise in selling pressure has pushed the digital asset lower and as per the relative strength index, this selling pressure was rising. RSI value had briefly hit 30, which is the oversold zone. However, a recovery pushed the indicator’s value higher. Now that the selling pressure continued, RSI has been moving towards the oversold zone again.

The money which momentarily made its way into the market might seep out. Chaikin Money Flow suggested that new money was entering the market with the recent recovery.

Crucial levels 

Entry-level: $285.38
Take Profit: $273.89
Stop-level: $294.04
Risk to Reward: 1.33

Conclusion

The current Litecoin market was suggesting the rise of bearishness in the market. As LTC’s value moved close to $286, the selling pressure was visibly dominant and the traders might want to tread carefully.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/litecoin-price-analysis-17-may

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Blockchain

Bitcoin, Ethereum and alt markets: Here’s the silver lining traders need to know

Republished by Plato

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Panic settles fast in the cryptocurrency industry. The collective market declined by 4% over the past 24 hours but the actual correction has amounted to over 20% since May 20. While Bitcoin struggled to move above $50k recently, Ethereum’s dropped from its recent ATH of $4372. With speculations of a prolonged bearish period gathering pace, there are a couple of things to note before coming towards a definite conclusion.

Ethereum: A timely market re-set?

Ethereum

ETH/USD on Trading View

Since 18 April, Ethereum has rallied by 124.47% in the market. The asset has managed to breach past multiple key levels and the present corrections can be considered as an ideal re-set. The asset is already retracing from the 0.5 Fibonacci line, which is fundamentally bullish. Relative Strength Index or RSI is also reaching a neutral state, attained last during the start of April, before the rally.

Structurally, the correction isn’t outrightly bearish yet. The amount of Ethereum held on exchanges continues to remain low following the price drop, indicating little selling pressure.

Source: CryptoQuant

Traditional Market impacting Bitcoin again?

Previously, most corrections across the crypto industry would always be attributed to a decline in the traditional stock market. However, Bitcoin is primarily acting on its own for the time being.

Source: Trading View

The above comparison chart between Bitcoin vs SPX vs Dow Jones is descriptive in terms of correlation between DJI and SPX, and its collective uncorrelation with the largest crypto asset. In general, the traditional stock market has assisted the crypto market to recover in the past but its present uncorrelation means that the sell-off is organic and not triggered due to external factors.

Fundamentally, Bitcoin miners aren’t bearish either.

Source: CryptoQuant

According to data, Bitcoin Miner’s Position Index has been under the value of 1 since the beginning of March. An MPI index above 2 suggests that miners are aggressively selling in the market. Its continued position below 1 exhibits miner sentiment has altered in the short term and the market remains bullish overall.

One minor concern highlighted by Ki-Young Ju, CryptoQuant CEO was a possible whale dump over the last 24-hours. A whale dump is usually followed by a period of correction, as the market tends to shuffle out weak hands.

So, what stirred the pot?

The commotion was initiated on Twitter on May 16 after Elon Musk went on another rant. Musk’s earlier comments on BTC’s energy consumption were the topic of discussion, which led to Musk terming Bitcoin as ‘highly centralized’. While he cleared speculation that Tesla did not trigger any Bitcoin sales during this time period, Willy Woo suggested market repercussions were already unlocked.

Should Traders be worried?

At the moment, No. While a drop below $46,000 is not ideal, Bitcoin is maintaining its position above its long-term support at $42,000. At press time, the asset has been able to facilitate a recovery towards the $45k range but preferably, it should commence a position above $46.5k within the next 24-48 hours.

BTC/USDT on Trading View

The market is at the periphery of a drastic turnaround. Indicators suggest a higher possibility of a bullish rally so it isn’t time to press the panic button yet.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/bitcoin-ethereum-and-alt-markets-heres-the-silver-lining-traders-need-to-know

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