Ether (ETH) gained 5.6% on Dec. 20 after testing the $1,150 support the previous day. Still, a bearish trend prevails, forming a three-week-long descending channel, a price action attributed to expectations of further U.S. Federal Reserve interest rate hikes.
Jim Bianco, head of institutional research firm Bianco Research, said on Dec. 20 that the Fed will keep the economy tightening in 2023. Later that day, Japan’s central bank effectively raised interest rates, far later than its global counterparts. The unexpected move made analysts more bearish toward risk assets, including cryptocurrencies.
Ethereum might have caught some tailwind after the global payment processor Visa proposed a solution to allow automatic funding from Ethereum wallets. Auto-payments for recurring bills aren’t possible for self-custodial wallets, so Visa proposed relying on smart contracts, known as “account abstraction.” Curiously, the concept emerged in 2015 with Vitalik Buterin.
The most pressing issue, however, is regulation. On Dec. 19, the U.S. House Financial Services Committee reintroduced legislation aimed at creating innovation offices within government agencies dealing with financial services. According to North Carolina Representative Patrick McHenry, companies could apply for an “enforceable compliance agreement,” with offices located in agencies like the Securities and Exchange Commission and Commodity Futures Trading Commission.
Consequently, investors believe Ether could revisit sub-$1,000 prices as the DXY dollar index loses strength while the 10-year U.S. reasury yields show higher demand for protection. Trader CryptoCondom expects the next couple of months to be extremely bearish for crypto markets.
Algos see $DXY down & bid up crypto. BOJ overnight isn’t bullish…it’s a sign of things breaking.
DXY ⬇️ & 10Y ⬆️ = Recession
I will be shorting the market waiting for three digit $ETH.
Crypto IS the future…
![Anticipation for Ethereum [ETH] 2.0 rises as metric reaches all-time high](https://crypto.newswireservice.net/wp-content/uploads/2023/01/ethereum-wale-1000x600-350x250.jpg)
