Bitcoin could benefit from an increase in investor attention amid the criminal investigation of US Federal Reserve chair Jerome Powell.
Federal prosecutors opened A criminal investigation was launched against Powell for testimony given to a Senate Committee about the renovations of Fed buildings.
It’s Sunday statementPowell claimed that the investigation was underway “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” Powell, the Fed and President Donald Trump have all been repeatedly attacked for their refusal to meet his demands. cut interest rates.
It is likely that the investigation could have short-term negative political effects on risk assets in general, and US equity markets specifically. However, the investigation has a negative impact on all risk assets. “systemic correction” Bitcoin demand may increase due to the rise in equity markets (BTC) “non-sovereign” According to Bitunix analysts, there are several attributes.
“When confidence in dollar credibility and central bank independence is questioned, decentralized assets tend to receive narrative-driven risk premia,” Cointelegraph was told by analysts that the following statements were made. “Over the long term, if political interference in monetary policy becomes structural, Bitcoin’s role as a “non-sovereign risk asset” is likely to be further reinforced.”
Related: Bitcoin holds $90K as ETFs wobble and institutions reposition: Finance Redefined
Bitcoin has risen 0.85% in the past 24 hours while Monero, a privacy-preserving cryptocurrency (XMRZcash (ZEC() increased 6.5% over the same time period.
“This environment is literally what Bitcoin was created for,” Will Clemente is a popular Bitcoin expert.
“The President is coming after the Fed chair. Metals are ripping as sovereigns diversify reserves. Stocks & risk assets at record highs. Geopolitical risk rising,” said Clemente in a Monday X post.
Related: Zcash sees developer slowdown as ZEC extends two-month slide
The crypto investor’s sentiment indicates a local bottom. Smart money does not buy
The data of crypto platform Matixport indicates that crypto investors are gradually improving their sentiment. That increases the chances for a crypto recovery.
“The moving average of our Greed & Fear Index is forming a clear base, a condition that historically coincided with Bitcoin bottoming phase,” Matrixport wrote in a “Monday X post.
Even though the sentiment is improving, traders who are most successful in the sector, as tracked by “smart money” Nansen still bets on the short-term fall of Bitcoin.
According to the crypto intelligence platform, smart money traders have been net short Bitcoin by a total of $127,000,000, and $1.6 million in shorts were added over the last 24 hours. Nansen.
Ether was the smartest bet.ETHThe price of $674 million net long and XRP on the.XRP(USD 72 million) signaling a higher upside expectation for tokens.
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Source: cointelegraph.com
