In today’s episode of The Market Report, analyst and writer Marcel Pechman covers the potential triggers for Bitcoin to move away from $27,000, including the US Federal Reserve meeting on May 3. The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.
The first news item discusses the catalysts for Bitcoin’s next move, including whether the Fed will follow the market consensus of a 25 basis point interest rate hike on May 3. The video analyzes how Bitcoin (BTC) should react to the central bank’s decision and explains how interest rates affect families and companies.
In Pechman’s view, the correlation between Bitcoin and the stock market should decrease as the US approaches its borrowing limit and the economy shows signs of weakness and recession. Pechman does not believe there is a reason for Bitcoin to drop to $25,000, as some analysts have suggested.
Moving on to the next item on the show, Pechman discusses Coinbase’s legal action against the Securities and Exchange Commission. “Coinbase wants to force the SEC to respond to its cryptocurrency industry rule request…by asking the SEC to clarify how it classifies tokens as securities.”
According to Pechman, the tables seem to have been turned, as the regulator has been postponing its decision and harassing cryptocurrency exchanges without giving any guidance on what sets the bar for tokens to become securities. What is the conclusion? This case may have a bigger impact than imagined, because the judges will take note of the SEC’s arguments.
In the last part of today’s episode, Pechman argues that Ether (ETH) is in a bad position due to average transaction fees above $4. Consequently, the total value locked (TVL) in smart contracts Ethereum in Ether terms plunged to its lowest levels since August 2020.
At the end of the show, Pechman focuses on the Ether derivatives markets, more specifically put and call volume. Currently, protective put options outnumber neutral or bullish call options by more than four times. Judging by the bearish view of professional traders, it is unlikely that the price of Ether will be able to hold the support at $1,850.
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