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Upside Elusive for Bitcoin as Yellen Says Fed Rate Hike a 'Plus'
Yellen's rate-hike comments and lingering China regulatory concerns dominate market sentiment.
Updated Sep 14, 2021, 1:07 p.m. Published Jun 7, 2021, 9:32 a.m.
Bitcoin struggled to rise as U.S. Treasury Secretary Janet Yellen kept the market from cheering El Salvador's plans to adopt the leading cryptocurrency as legal tender.
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In a taped announcement on Saturday, El Salvador President Nayib Bukele said he plans to submit legislation that will make bitcoin legal tender. The announcement lifted investor sentiment, with some calling a potential adoption at the government level a major bullish development.
However, the cryptocurrency remains locked well within Saturday's trading range of $34,900 to $37,900. At press time, bitcoin is changing hands near $36,200, according to the CoinDesk Bitcoin Price Index, up 1% on the day.
China's regulatory crackdown and U.S. Treasury Secretary Janet Yellen's latest comments on interest rates could be capping the gain.
Also read: Bitcoin, Other Cryptos Fall After Weibo Blocks Rekindle Fears of China Crackdown
On Sunday, Yellen told Bloomberg that President Joe Biden's $4 trillion spending proposal would be positive for the country, even if it leads to a rise in interest rates. "If we ended up with a slightly higher interest rate environment, it would actually be a plus for society's point of view and the Federal Reserve's point of view," Yellen said.
A rate increase dilutes the appeal of perceived inflation hedges such as bitcoin and gold.
China stepped up its crackdown on bitcoin trading and mining over the weekend, blocking many cryptocurrency “key opinion leaders” on Weibo. The move comes weeks after China reiterated its long-standing ban on cryptocurrency trading and mining, sending the price of bitcoin lower.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
Що варто знати:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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