5 min readBitcoin has recovered back above $60,000 after briefly falling below this key psychological level on Thursday as investors as the market digested hotter than expected US inflation and amid regulatory concerns.
Today, Bitcoin trades almost unchanged at $60.5k, and Ether is also trading subdued at $2400. Most altcoins are also seeing little action, with a few exceptions, such as Cardano, which is up 2%, and UNI, which has jumped 7%.
Hotter US inflation weighs on Bitcoin.
US inflation, as measured by the Consumer Price Index (CPI), was 2.4% YoY in September, down from 2.5% in August and ahead of forecasts of 2.3%. Meanwhile, core inflation defied expectations and rose to 3.3%, up from 3.2%. The data further supported expectations of a more gradual pace for the Federal Reserve’s interest rate cuts.
High rates for longer bode poorly for riskier assets such as Bitcoin. Meanwhile, the U.S. dollar trades at a two-month high, further pressuring crypto valuations.
The market maintains expectations that the Federal Reserve will cut interest rates by 25 basis points in the November meeting. However, the market is also pricing in a 10% possibility that the Fed could leave interest rates unchanged next month.
SEC vs Cumberland
The US Securities and Exchange Commission (SEC) filed a lawsuit against Chicago-based trading firm Cumberland DRW for operating as an unregistered securities dealer in more than $2 billion of crypto assets offered and sold as securities. According to the SEC, since March 2018, Cumberland has acted as an unregistered dealer by buying and selling crypto assets offered and sold as securities as part of its regular business.
The move is the latest by the SEC in a long-running crackdown against what it considers to be multiple violations of securities law within the crypto industry. The SEC is also engaged in cases against Kracken and Coinbase on allegations of breaching security law. These are all based on the grounds that crypto tokens fall under securities law.
The rum here of concerns over more regulatory action from the SEC on the crypto industry come amid rising concerns over a mass token sale by the US government.
Looking ahead the 2024 presidential election will be key for the outlook for regulatory conditions within the crypto industry.
Cardano rises on smart contract news.
ADA is trading over 2% higher today after Cardano achieved a notable milestone by hosting its first legally enforceable smart contract in Argentina. Cardano ambassador and attorney in Buenos Aires Mauro Andreoli announced to the Cardano community that the first legally and judicially enforceable contract on the Cardano network had been signed in full compliance with the laws of the Argentine Republic.
The move is an exciting development that serves as a model for future legal smart contracts.
Argentina’s embracing of Cardano is further evident by the appearance of President Javier Milei at the upcoming Cardano summit in Argentina on October 19th.
At this event, Cardano’s Charles Hoskinson is expected to unveil a new road map for the project, complementing the recent execution of the Chang hard fork. He will also give a keynote speech regarding the future of blockchain and its application in the Argentinian digital economy.
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