Fed Reveals Crypto ‘Opportunities’ After $2 Trillion Price Crash Banks Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin
Bitcoin
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The bitcoin price, down about 70% from its peak in late 2021, has crashed back this year as the Federal Reserve battles soaring inflation by raising interest rates and cutting stimulus. The Fed’s hawkish policy has also hit the price of top ten cryptocurrency ethereum, BNB
Now, the Federal Reserve has said that cryptocurrencies such as bitcoin, ethereum and others could present “potential opportunities” for banks, and is asking Wall Street to put in place systems to handle digital assets as market supports for the institutional investor’s “gates” to open.
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Federal Reserve Chairman Jerome Powell has fought against soaring inflation with a program for … [+]
“The emerging cryptoasset sector presents potential opportunities for banking organizations, their customers and the overall financial system,” the Fed wrote in a statement alongside a 49-page document recommending companies notify Fed regulators before engaging with bitcoin and cryptocurrencies .
“Crypto-asset-related activities may also pose risks related to safety and soundness, consumer protection and financial stability,” the Fed added. The Bitcoin and crypto market has remained extremely volatile despite Wall Street’s increasing willingness to support the likes of bitcoin ethereum, BNB, XRP, solana, cardano and dogecoin.
Earlier this month, the world’s largest asset manager BlackRock sent shockwaves through the crypto industry when it announced a partnership with major crypto exchange Coinbase
The Fed also this week provided long-awaited guidance on how it will evaluate applications from cryptocurrency companies that want to use the Fed’s accounts and payment services.
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Bitcoin price has lost around 70% of its value through 2022 with the decline weighing on the price … [+]
“The new guidelines provide a consistent and transparent process for evaluating requests for Federal Reserve accounts and access to payment services to support a safe, inclusive and innovative payments system,” Fed Vice Chairman Lael Brainard said in a statement.
The bitcoin and crypto markets have been trading more or less sideways since finding a floor in mid-June, even as the ethereum price has climbed higher as a “hundred pound gorilla gets closer every day.”
“Bitcoin is having a hard time going anywhere at the moment, but looking at it from a long-term perspective, this appears to be an accumulation point, and whether bitcoin falls further does not matter to the millions who believe in it,” Martin Hiesboeck, head of blockchain and research at crypto platform Uphold, said in emailed comments.
“The fact that it hasn’t fallen significantly in recent weeks as we digested some really bad news is a turning point.”
