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Bitcoin flips resistance into support
Bitcoin has pushed its way back up and through a resistance level of around $42,500. The crypto went as high as $45,400 and has since settled near $43,450. Ether has followed a similar trend by breaking through and holding above the resistance level of $3,000.
After the pump of the last few days, major cryptos like bitcoin and ether have settled back down and created a support line of previous resistance. This paints of picture of positive near-term sentiment in the digital asset markets.
Adding to the positive sentiment was largely positive US House Financial Services Committee’s hearing today on stablecoin regulations. Nellie Liang, undersecretary of the Treasury for domestic finance, testified during the hearing that stablecoins would not compete with the dollar or a CBDC (central bank digital currency) issued by the Federal Reserve.
“It is important to preserve the value of the dollar. I believe stablecoins that are stable, and can deliver a stable value tied to the dollar, would be would benefit the US dollar,” said Liang.
“In my view, regulating stablecoins to the dollar does not in any way, preclude anything with respect to the introduction of the CBDC. It is hard to know what the future will look like, but one could imagine they could coexist,” said Liang when talking about CBDCs and privately issued stablecoins existing alongside one another.
Generally positive earnings
Good earnings reports seem to have helped investors forget about incoming rate hikes. The S&P 500, Nasdaq and Dow rose on the day as earnings reports have largely been positive even with outliers like Meta and PayPal trending downward.
The S&P 500 rose by 37.67 points or 0.84%. The Nasdaq increased by 175.79 points or 1.21%, and the Dow rose by 371.65 points or 1.06%.
Investors seem to have been attracted back to the markets by positive earnings reports which have reduced the amount of fear and uncertainty in the market. Federal Reserve Gov. Michelle Bowman is scheduled to speak tomorrow at 10:30 am EST, followed by Cleveland Fed President Loretta Mester at 12:00 pm EST. These events could have some effect on tomorrow’s market movements