Bitcoin breaks below $26,000 ─ Investors pay close attention to US CPI and Fed interest rate announcement | CoinDesk JAPAN | Coin Desk Japan

Bitcoin (BTC), which briefly exceeded $26,000 in the early morning, fell below $26,000 again on the 12th (US Eastern time). Near $25,850 at time of writing, down 1% in 24 hours.

Bitcoin fell below $26,000 over the weekend after big news last week with the US Securities and Exchange Commission (SEC) filing a lawsuit against Binance and Coinbase. This week, attention will be paid to the US consumer price index (CPI) in May on the 13th and the announcement of the policy interest rate by the US Federal Open Market Committee (FOMC) on the 14th.

“Crypto markets are in a stalemate as regulatory fears run wild and some investors abandon big exchanges,” said Edward Moya, senior market analyst at Oanda. Mainstream adoption is not happening with DeFi (decentralized finance), experienced traders are moving their trades to DeFi, which is good news for long-term growth and attracting new investors No,’ he said.

“Bitcoin has major support around $25,400,” he said ahead of the US CPI and Fed rate announcements.

Ethereum (ETH) fell 1.8% over 24 hours to near $1,735, affected by the token drop mentioned in the SEC lawsuit. Solana (SOL) fell about 7%, Polygon (MATIC) about 2.8%, and Cardana (ADA) about 1.5%. The CoinDesk Ethereum Trend Indicator moved into downtrend territory a week after entering a large uptrend, reflecting weak investor sentiment.

The cryptocurrency market has once again diverged from the strong U.S. stock index as big tech stocks rallied. The S&P 500 rose 0.9% to a one-year high, while the Nasdaq also rose 1.5% and the Dow Jones Industrial Average rose 0.5%. The 10-year US Treasury yield rose to 3.73%, while gold, which often behaves similarly to crypto assets, fell 0.2%.

Strahinja Savic, head of data and analytics at Toronto-based cryptocurrency platform FRNT Financial, said crypto was underperforming following the SEC lawsuit last week. But he was optimistic, citing a big drop in XRP in 2020 months before the big rally.

“[Current]XRP market cap is about the same as it was just before the SEC sued Ripple. We’ll see if assets show similar resilience,” he said.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Bitcoin Price Trends (CoinDesk)
｜Original: Bitcoin Dithers Below $26K as Investors Eye CPI Data, FOMC Rate Hike Decision