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Prices of BTC and ETH surge in the face of SEC officials’ positive comments

Published by
Nonhlanhla P Dube

Bitcoin and Ethereum prices rose slightly as market sentiment improved following comments from Fed Governor Christopher J. Waller and SEC Chairman Gary Gensler.

Prices of key cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), soar by 5% and 11%, respectively, as the fear of a 100 basis point boost fades.

Crypto market surges in response to Fed Governor’s comments

Several Federal Reserve officials anticipate a 75 basis point rate hike in July, ruling out a 100 basis point boost. Furthermore, Fed Governor Christopher Waller believes that another 75 basis point boost is still necessary. However, statistics on retail sales and housing due before the Fed’s policy meeting on July 26-27 might push the rate up by 100 basis points.

The cryptocurrency and stock markets in the United States have risen in response to the news. However, both markets remain under pressure due to uncertainty as US CPI data hits a 40-year high. Last week, initial unemployment claims jumped by 9K to 244K, reflecting job cuts in both markets and mounting economic uncertainty.

Many Fed Reserve Board members believe that as energy prices decrease, they do not agree on raising interest rates by 100 basis points. According to Waller, the Fed’s primary job right now is to keep prices low.

The probability of a 75-bps rate hike is 53.6 %, while a 100-bps hike is 46.4 %, according to the CME FedWatch Tool. On the day of the inflation report, the probability of a 100 basis point Fed rate hike increased to more than 80%.

Following Waller’s comments, the crypto market went green, with a total market cap of R15.9 trillion, up 3.68 %. On the basis of huge trading volumes, Bitcoin (BTC) and Ethereum (ETH) reached highs of R 357Kand R20.8K, respectively, in the last 24 hours.

SEC Chair Backs Bitcoin and Ethereum

SEC Chair Gary Gensler has agreed to relax some securities restrictions for crypto firms in order to help the crypto industry increase compliance. He stated that the agency might utilize executive authority to regulate cryptocurrency for investor safety and disclosure.

He believes that enterprises, such as crypto lending and trading platforms, must collaborate with the SEC to realize their full potential. He also mentioned that corporations are selling unregistered securities, which increases the dangers for investors.

Customers of Celsius are unlikely to recover payments after the company declared bankruptcy. Customers and depositors, on the other hand, appear to have a way to recoup monies.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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