Investors remain cautious before the Fed takes action – Bitcoin (BTC/USD)

Investors remain cautious before the Fed takes action – Bitcoin (BTC/USD)

Bitcoin Bitcoin / US Dollar The cryptocurrency market saw a huge bounce yesterday, before finding resistance at $19,666 – the top of the 2017 bull run, a major resistance. Bitcoin is still below $20,000 at the moment as investors exercise extreme caution ahead of tomorrow’s Federal Reserve decision, followed by a press conference with Chairman Jerome Powell.

The market is currently pricing in an 82% chance of a 75 basis point rate hike, and an 18% chance of a 100 basis point rate hike. Since the opportunity for a rate hike of at least 75 basis points has been fully priced in by investors, I think a 75 basis point rate hike can be priced in, in the short term. However, central banks are very aggressive, so a short-term rally could be short-lived.

In addition to tomorrow’s Federal Reserve decision, there is the Bank of Japan monetary policy decision and the Bank of England interest rate decision on Thursday, as well as the US Conference Board’s leading indicator – initial jobless claims. So we are prepared for a very volatile week as investors gain clarity on central bank decisions.

Wintermute, a crypto market maker, has been hacked for $160 million in DeFi operations. CEO Evgeny Gaevoy confirmed that the company can still fulfill, however, as the central exchange and over-the-counter offerings have not been affected.

Gaevoy said, “If you have an MM agreement with Wintermute, your money is safe. There will be an outage to our services today and maybe over the next few days and it will be back to normal after that.”

This is a negative development within the DeFi space, and will not help the confidence of TradFi (traditional financial) institutions looking to enter the DeFi space. Since Wintermute has been one of the largest liquidity providers in the industry, they may have to phase out liquidity in order to mitigate the additional risk of their loss.

Due to the transparency of the blockchain technology, the hacker’s address has been determined where the stolen funds are, so there is a chance to return the funds.

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