Bitcoin Remains Cool Amidst Jerome Powell’s Hawkish FOMC Minutes, Approaching $30,500

The world’s largest cryptocurrency Bitcoin (BTC) continues to show less movement this week and continues to hold steady above the $30,500 level. Bitcoin has received support from some of the top industry players with BlackRock CEO Larry Fink showering additional praises for the asset class.

On Wednesday, July 5, speaking on Fox Business, Fink said that the role of crypto was largely “digitizing gold”. “Let’s be clear: Bitcoin is an international asset,” said Fink. “It’s not based on any one currency, and so it can represent an asset that people can play as an alternative.”

Fink, the CEO of the world’s largest asset management firm, proposed that investors consider Bitcoin as a safeguard against inflation or the depreciation of specific currencies. With over $9 trillion in assets under management, Fink’s positive stance on cryptocurrencies could have a significant impact on the industry and beyond.

The flood of spot Bitcoin ETF applications last month helped the BTC price to surge to $31,000. However, going forward, liquidity remains a major challenge for the cryptocurrency. Tim Frost, the CEO of digital wealth platform Yield App said that the crypto market seems to be transitioning from an 18-month bear market. Speaking to CoinDesk, he said:

We could be looking at that same period of stability around about now. Indeed, bitcoin has remained relatively stable over the past three months ranging between $28,000 and its current level of just below $31,000. If we were to see a few more months of this, this would set the stage for a much more optimistic period in terms of price.

All eyes on Macro Economic Data

There have been some positive developments in the crypto regulatory space as well as in the global macro environment. First is that the SEC recently allowed bankrupt crypto lender Celsius to sell altcoins for BTC and ETH in order for them to distribute them further to creditors and clients.

Positive signals in the macroeconomy and trends in the crypto industry were observed, such as a decrease in inflation, the introduction of a quantitative easing program in China, and improved regulatory clarity in Singapore, Korea, and Thailand.

Frost said:

We really are seeing a clearing of the decks in cryptocurrency, and regulation is creating a landscape that will make it easier for everybody to operate. This, combined with some more stable and promising price signals, means that now may be a very good time to think long term.

Along with Bitcoin, the altcoins market is picking up strongly. Litecoin (LTC) made strong movements earlier this week reaching its 2023 high of $114. The activity around Litecoin has shot up significantly as the halving event approaches closer.

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