Bitcoin dips, limbos and consolidates; US regulators explore crypto banking path
Link copied to
A mixed day in the crypto market so far has seen Bitcoin dip back below US$62K, but wriggle its way up again. Meanwhile, a top US regulator says officials are exploring how banks could hold crypto.
Firstly, onto Bitcoin, which has been in a bit of a tussle to find some crucial support today, dipping below US$62K not long ago. It might have just retested and confirmed said support around US$61,600, however, as it’s currently roller-coasting back up again.
We’re keeping an eye on Rekt Capital’s analysis, who suggests retest and consolidation at this level would be a “sign of strength on the side of buyers”. So far, so good…
#BTC is in the process of dipping now
— Rekt Capital (@rektcapital) October 26, 2021
At the time of writing, the OG crypto is changing hands for US$62,354, down about 1.8 per cent since this time yesterday. Another chart-watching favourite, Michaël van de Poppe, believes Bitcoin is still on its bumpy path towards US$90K, although judging by his chart below, his timeframe’s a little longer for that kind of level than some…
— Michaël van de Poppe (@CryptoMichNL) October 26, 2021
… Such as PlanB, for instance, who remains confident in the general accuracy of his Bitcoin Stock to Flow model and its US$100K-$135K target for the end of this year.
— PlanB (@100trillionUSD) October 26, 2021
The entire crypto market right now, according to CoinGecko, is down about half a percentage point taking in the past 24 hours, and is hanging around the US$2.73 trillion mark.
Because it differs slightly in the amount of data it pulls from, it’s always a bit lower on CoinMarketCap (currently US$2.6 trillion). But… if the Gecko stat makes you feel better, let’s ride with that one.
Here’s an overview of the top coins as they stand at this very minute, with “Bitcoin dominance” (its overall crypto market share) down slightly – about 0.7 per cent from yesterday.
In a pleasant change from some of the recent US regulatory rhetoric surrounding certain aspects of crypto being the “wild west”, a top US banking regulator today said that officials in the country are seeking to find a clear roadmap for banks to engage with crypto assets.
Jelena McWilliams chairs the Federal Deposit Insurance Corporation (FDIC) and told Reuters in an interview that a team of US bank regulators are working on it.
“I think that we need to allow banks in this space, while appropriately managing and mitigating risk,” said McWilliams in an interview at a Las Vegas fintech conference.
“If we don’t bring this activity inside the banks, it is going to develop outside of the banks,” she continued. “The federal regulators won’t be able to regulate it.”
— Michael Saylor⚡️ (@saylor) October 26, 2021
The regulation “sprint team” has the goal, according to the Reuters article, of ensuring cryptocurrency policy coordination among the three main US bank regulators – the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency. (Looks like the SEC’s Gazza Gensler sits this one out.)
“My goal in this interagency group is to basically provide a path for banks to be able to act as a custodian of these assets, use crypto assets, digital assets as some form of collateral,” McWilliams said.
“At some point in time, we’re going to tackle how and under what circumstances banks can hold them on their balance sheet.”