• Bitcoin (BTC) has avoided losses in U.S. stocks as strong economic data makes investors reconsider expectations that the Federal Reserve will pivot anytime soon to a more dovish monetary policy.
• The Central Bank of Indonesia white paper on the development of the country’s central bank digital currency (CBDC) envisions a world with a government-sanctioned payment layer.
• Bitcoin (BTC) was flat over the past 24 hours, on a day where U.S. stocks sold off.
The prices of Bitcoin (BTC) have managed to dodge the losses seen in U.S. stocks as strong economic data has caused investors to reconsider their expectations that the Federal Reserve will pivot anytime soon to a more dovish monetary policy. The CoinDesk Market Index (CMI) was 796.34, up 0.4%, with BTC trading above $16,817 and Ether (ETH) trading around $1,217, up 0.3%. The S&P 500 daily close was 3,822.39, down 1.4%, and gold was $1,801, down 0.8%.
The Central Bank of Indonesia has recently released a white paper on the development of the country’s central bank digital currency (CBDC). This document envisions a world with a government-sanctioned payment layer and a digital monetary system that is more efficient, secure, and transparent than the current financial system. It also emphasizes the need for an open platform that would enable financial inclusion and promote innovation in the payments space.
Bitcoin (BTC) has held its own throughout the day, despite the sell-off in U.S. stocks. The largest cryptocurrency by market volume was trading above $16,800, down just 0.01% over 24 hours. Meanwhile, positive economic data has revived fears that the Federal Reserve may need to keep tightening monetary policy longer than expected – a trend that has put downward pressure on risky asset prices all year. According to Ryan Selkis, the CEO of Messari, in a 168-page report on his 2023 predictions, the market’s direction is „still all about macro and regulation.“ He believes that the market sentiment is that there will be a recession in 2023, with some debate over its potential magnitude. However, there are some investors who think that the Fed will pivot once the recession reaches its peak.
Overall, Bitcoin (BTC) has been able to avoid the losses seen in U.S. stocks, as investors are beginning to reconsider their expectations on the Federal Reserve’s monetary policy. Furthermore, the Central Bank of Indonesia’s white paper outlines a world with a government-sanctioned payment layer, which could provide more efficient, secure, and transparent transactions. Finally, the positive economic data has revived fears that the Federal Reserve may need to keep tightening monetary policy in order to control inflation. As such, it remains to be seen whether the market will reach a recession in 2023 or if the Fed will pivot in the near future.