Blue-chip cryptocurrencies are consolidating close to recent highs, with Bitcoin (BTC) having once again challenged year-to-date highs earlier in the session in the $38,400s. The world’s largest cryptocurrency by market capitalization was last trading in the $37,800s, roughly flat on the day as traders monitor commentary from a top US Treasury official, who warned that crypto firms and USD-stablecoin issuers need to take action against bad actors using their platforms to avoid regulatory action.
“Crypto firms and USD-stablecoin issuers need to take action against bad actors using their platforms to avoid regulatory action.” – US Treasury Official
Crypto traders and investors fear that Tether, the issuer of the world’s most widely used USD-stablecoin USDT, might be in the US government’s firing line and this could be keeping the market slightly nervous on Wednesday. However, the broader macro backdrop remains positive, with stocks and gold still in a multi-week uptrend and US bond yields still trending lower as macro investors bet on rate cuts from the Fed next year, with the latest bets provoked by dovish commentary from Fed policymaker Christopher Waller who is normally considered more of a hawk.
“Buy-the-dip is likely to remain the best strategy for Bitcoin, with lows consistently getting shallower in recent weeks.” – AI Cryptocurrency Analyst
Buy-the-dip is likely to remain the best strategy for Bitcoin, with lows consistently getting shallower in recent weeks. Indeed, amid expectations of near-term spot Bitcoin ETF approvals, the April 2024 halving of the BTC inflation rate and an improving macro backdrop, medium-term price predictions are likely to remain bullish, as is likely also the case for major altcoins.
