24 Crypto Update, 31 Oct: Crypto Awaits Fed's FOMC Meeting Decisions

Crypto traders await today's Fed FOMC decisions

Bitcoin and various cryptocurrencies exhibited minimal fluctuations on Tuesday, holding onto their recent rally gains. This stability coincided with global financial markets awaiting the Federal Reserve's impending monetary policy decision. The Fed is anticipated to keep the current interest rates unchanged in the forthcoming FOMC announcement scheduled for Wednesday.

Over the past 24 hours, the total trading volume in the cryptocurrency market has reached $55.30 billion, marking a 9.79% decrease. Notably, the DeFi sector contributes $4.21 billion to this total volume, representing 10.32% of the entire cryptocurrency market's 24-hour trading activity. Meanwhile, stablecoins account for a substantial $35.99 billion of the total volume, constituting 88.24% of the cryptocurrency market's 24-hour trading activity. Bitcoin's dominance has also increased slightly, currently standing at 52.75%, reflecting a 0.06% uptick over the course of the day.

Major Events To Watch:

Crypto Fear and Greed:

Over the past 24 hours, the cryptocurrency markets exhibited a period of consolidation, resulting in a stable "Greed and Fear Index." As a result, the index currently stands at 66 on its scale from 0 to 100.

Latest Market Update: 

Bitcoin held steady at $34,000, with the market's Fear & Greed Index registering 72 (greed). Major altcoins like Ethereum, Dogecoin, Ripple, Solana, and Litecoin also posted slight gains. Theta Network led the gainers, surging over 10% in the last 24 hours, while BitTorrent(New) was the biggest loser, dropping over 8% during the same period.

Major Worldwide News Update:

• On Tuesday, Crypto currency price remained stable as investors adopted a cautious stance before the upcoming Federal Open Market Committee (FOMC) announcement by the Federal Reserve regarding interest rates. The Fed is considering the impact of rising Treasury yields on the markets, with some speculating a potential rate hike to combat inflation. Most analysts expect rates to remain unchanged, but the possibility of a rate hike is gaining traction as inflation has shown signs of increasing recently.

• Bitcoin's 30.50% October surge is fueled by expectations of a U.S. spot Bitcoin ETF approval. Demand estimates range from $3 billion on day one to $55 billion over five years. Experts anticipate a buying frenzy if the SEC approves. Traditional investors are cautious. Market size, demand factors, and Bitcoin's opacity make predictions complex. Success for future spot Bitcoin ETFs hinges on marketing and competition, with around half possibly facing challenges.

• The Bank of Japan (BoJ) maintained a policy rate of -0.1% and a 10-year Japanese government bond (JGB) yield target of 0%. The previous 1% upper limit for the 10-year JGB was removed, now considered a reference. Yield curve control remains. Inflation forecasts were revised higher, but FY25 CPI is below the 2% target. We predict BoJ will hold rates until at least Q2 2024. Any policy tightening is unlikely before evidence of substantial wage increases from Shunto negotiations in April 2024. Changes to yield curve control are possible.

• Top Republican lawmakers are urging to block the SEC's April 2022 rule, Staff Accounting Bulletin (SAB) 121, which they consider an overreach in regulating crypto assets. They claim it hampers transparency and discourages companies from revealing their crypto asset balances, potentially affecting custodial services and consumers' access to secure asset custody. The SEC's rule has prompted concerns in the industry, including crypto exchange Coinbase, which highlighted potential risks associated with it.

• Siemens and Microsoft have unveiled the Siemens Industrial Copilot, a generative AI assistant designed to enhance "human-machine collaboration" in various sectors, including manufacturing, healthcare, transportation, and infrastructure. The companies aim to foster innovation and address labor shortages, with competitors like Bosch also entering the AI and Web3 space with a $100 million grant scheme.

• Circle, the stablecoin issuer, is discontinuing individual or consumer accounts by November 30, affecting functionalities like wiring and minting. Speculations suggest this move could be a response to reserve depletion, a cost-cutting effort, or declining account usage. Business and institutional accounts remain unaffected. Circle is currently facing regulatory challenges, including a legal battle with the SEC regarding the regulation of stablecoins.

• Gary Gensler, Chairman of the SEC, acknowledged Satoshi Nakamoto on the 15th anniversary of the Bitcoin Whitepaper, crediting the crypto revolution's origin. While the SEC has fought crypto fraud, Gensler faces industry pressure for Bitcoin spot ETF approvals, with major applicants like BlackRock in the mix.

COIN GABBAR Views: Will November see a peak following Uptober's surge? Is a BTC price rally to $40K imminent, or is a correction to $31K on the horizon? Can the failed Golden Cross pattern lead to higher prices, and what's next in store? How might the FOMC Meeting and crypto market outlook impact this surge? To get latest news Stay tuned us at www.coingabbar.com

Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.

For More News: Crypto Daily Roundup, 31 Oct: Crypto Rally and Fed Decision Aligned