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First Mover Americas: Crypto Majors Subdued After Fed's Hawkish Stance

CoinDesk / 17.06.2024 / 12:37
First Mover Americas: Crypto Majors Subdued After Fed's Hawkish Stance

This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

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The biggest cryptocurrencies fell during the European morning, extending the subdued mood after the Federal Reserve trimmed interest-rate cut expectations on Wednesday. Bitcoin and ether both fell by around 1% over 24 hours, CoinDesk Indices data show. Bitcoin dropped to just below $66,000 – near the low end of the $72,000-$65,000 range it's been trading in for the past month – and ether was quoted around $3,500. The CoinDesk 20 Index (CD20), a measure of the broader crypto market, fell about 1.8%. Markets in many countries are closed for Islam's Eid al-Adha festival. Meme coins led declines, with SHIB losing 3.5% and DOGE dropping 1.7%.

U.S.-listed bitcoin miners reached a record market cap of $22.8 billion on June 15, JPMorgan said in a report. The bank noted that almost all the companies outperformed bitcoin in the first two weeks of June, with Core Scientific the best performer, adding 117%, and Argo Blockchain the worst, dropping 7%. The world’s largest cryptocurrency fell 3% in the same period. Bitcoin mining stocks gained in the first half of the month as investors reacted positively to news of Core Scientific’s deal with artificial intelligence firm CoreWeave, the report said. Mining difficulty also extended its fall since April's reward halving.

The Financial Stability Board (FSB) said it will undertake further work on the challenges posed by stablecoins in emerging and developing economies. The decision was taken during a meeting in Toronto of the FSB's plenary, the sole decision-making body of the standard-setting and advisory organization, according to a Friday statement. The FSB has been one of the main architects of global crypto policy. Last year, along with the International Monetary Fund, it framed a joint policy paper on crypto, warning against implementing blanket bans to mitigate risks associated with the sector. At last week's meeting, FSB members discussed areas that "warrant further attention" in the industry.

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Edited by Sheldon Reback.

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