In the latest episode of Cointelegraph market reportAnalyst Marcel Pechman explores the drivers of Bitcoin’s move toward $22,000, after Grayscale invested in a much-hyped legal victory over the SEC on Aug. 29 and delayed multiple spot Bitcoin trades. Sentiment Deterioration (BTC) ETF Application.
On the bearish side, according to Pechman, are the multiple SEC lawsuits against Binance and Coinbase, including a possible U.S. Department of Justice prosecution of Russian entities for money laundering and facilitating transactions. But more importantly, U.S. inflation has fallen to 3.2%, and the Fed is draining market liquidity.
Pechman also analyzed BitMEX founder Arthur Hayes’ claim that the Bitcoin bull market began in March. Hayes pointed to the impact of Silicon Valley Bank and the subsequent intervention of the U.S. Treasury Department as turning points in the cryptocurrency market.
Pechman agreed with Hayes, but raised the issue of the U.S. dollar index, which measures the greenback against other major foreign currencies such as the euro or Swiss franc, and is now at the same level as it was six months ago. Investors have realized that if the global economy slumps, other countries could collapse before the U.S., Pechman said.
Ultimately, Pechman argues that it doesn’t matter to the Fed if bailing out banks could spark economic turmoil, given that U.S. Treasuries and the dollar are still considered the safest bets.
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