Bitcoin Surges 5% After Fed Rate Decision, SEC Clarification

Bitcoin (BTC) experienced a significant rally on Wednesday following the Federal Reserve's decision to maintain interest rates between 4.25% and 4.50%. The cryptocurrency surged over 5%, surpassing key moving averages and $85,000 to reach an intraday high of $87,038. This rally was further bolstered by the Securities and Exchange Commission’s announcement that Proof-of-Work mining rewards are not securities, which could enhance investor confidence in BTC. Despite Wednesday’s rally, BTC is down nearly 3% over the past 24 hours, trading just under $84,000.

The SEC's clarification that Proof-of-Work mining rewards do not fall under US securities laws has provided regulatory clarity for Bitcoin and other Proof-of-Work cryptocurrencies. This announcement reduces legal risks and boosts investor and miner confidence, reinforcing the commodity status of these assets and potentially driving market growth and price. The SEC's statement underscores that miners' expectations to receive rewards are not derived from any third party’s entrepreneurial efforts, but rather from their own computational contributions to the network.

Japanese Bitcoin investment company Metaplanet has appointed Eric Trump to a newly formed strategic board of advisors. The board is composed of members dedicated to advancing the Bitcoin mission and promoting financial innovation. Eric Trump, known for his advocacy of digital asset adoption, joins the board to further these goals. Metaplanet, which trades on the Standard section of the Tokyo Stock Exchange, has transitioned from its previous focus on regional hotel operations to becoming a prominent player in the Bitcoin investment landscape.

The North Korean hacker group Lazarus holds more Bitcoin than Tesla, the leading electric car manufacturer. According to Arkham Intelligence, Lazarus possesses 13,441 BTC worth $1.4 billion, significantly more than Tesla’s 11,509 BTC. The group's substantial Bitcoin holdings were acquired through high-profile hacks, including the Bybit hack, where they drained over $1.4 billion from the platform and converted the stolen funds into Bitcoin. In contrast, Tesla acquired its Bitcoin stash over four years ago and remains one of the largest publicly listed companies in terms of BTC holdings.

CryptoQuant founder and CEO Ki Young Ju has suggested that Bitcoin bulls who believe the current bull cycle is far from peaking may be relying on outdated strategies. Ju argues that those tracking retail movements using only on-chain metrics are missing the full picture. He noted that 80% of spot Bitcoin ETF inflows came from retail investors, indicating that retail participation is likely entering through ETFs rather than directly through exchanges. This shift keeps the realized cap lower than if the funds were flowing directly to exchange deposit wallets, potentially affecting the overall market dynamics.

BTC experienced a sharp decline last Tuesday, falling to a low of $76,642 before rebounding to reclaim $80,000 and settle at $82,843. Buyers retained control on Wednesday as the price rose almost 1% and settled at $83,709, despite considerable selling pressure. However, buyers lost momentum on Thursday as BTC fell over 3%, reaching a low of $79,995 before settling at $81,136. Bullish sentiment returned on Friday as markets rallied, pushing BTC past the 200-day SMA to an intraday high of $85,263 before settling at $84,002, ultimately registering an increase of almost 4%. Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. However, BTC fell back in the red on Sunday as buyers lost momentum, slipping below the 200-day SMA and settling at $82,611.

The current week started with the price rising almost 2% and settling at $84,016. Selling pressure increased on Tuesday as BTC fell to an intraday low of $81,187. The price recovered from this level and settled at $82,725, ultimately registering an increase of almost 2%. Markets rallied on Wednesday following the FOMC meeting, pushing BTC over 5% past the 20 and 200-day SMAs and $85,000, reaching an intraday high of $87,038 before settling at $86,875. However, buyers lost momentum on Thursday as selling pressure returned and BTC dropped over 3%, slipping below the 20 and 200-day SMAs and settling at $84,215. The current session sees BTC marginally down as buyers and sellers struggle to establish control. If sellers retain control, BTC could drop to $80,000. A break below this level could see the flagship cryptocurrency fall to $76,000. On the other hand, buyers will look to regain control and push back above $85,000 and the moving averages.