On Friday (November 15), Bitcoin plummeted below $87,000 and dropped to $86,668. On-chain data showed that the Bhutanese government transferred 367.26 bitcoins to Binance Exchange, causing panic in the cryptocurrency circle. Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), once again urged crypto exchanges to comply with regulations and required appropriate disclosures for corresponding projects. Federal Reserve Chairman Powell sent out hawkish signals, and the strong dollar suppressed cryptocurrency buying.
Powell said that the U.S. economy has performed "very well" recently, which provides room for the Fed to cautiously cut interest rates. After the hawkish signal was released, the U.S. dollar index hit a new high of 107.08 on Thursday, suppressing the rise of cryptocurrencies, which means that the "Trump Trade" has diverged.
“The economy is not sending any signals that we need to rush to cut rates,” he said Thursday in Dallas. “The strength of the economy that we’re seeing right now gives us the ability to be cautious in making that decision.”
Powell added that uncertainty about the neutral level of interest rates, where policy neither stimulates nor suppresses growth, provides another reason for caution. Several Fed officials have said they believe the federal funds rate remains in restrictive territory and favor gradual cuts to that level.
“We need to be careful in this situation,” he said. With the Fed nearing a “reasonable neutral range,” he added, “we may slow the pace of action to increase the chances that we get it right.”
According to Onchain Lens, the Royal Government of Bhutan has just deposited 367.26 bitcoins worth $33.51 million into Binance, the world's largest cryptocurrency exchange.
Usually, a sudden transfer of funds by whales to exchanges is considered a possible sale, as they could have kept the funds in hard wallets/cold wallets, which is a safer and longer-term storage mode.
The Block reported that Gensler once again urged cryptocurrency exchanges to comply with regulations and require projects selling securities to make appropriate disclosures at the annual securities regulation conference on Thursday. Gensler said that among the approximately 10,000 digital assets currently in circulation, most of them, except Bitcoin, Ethereum and stablecoins, may fall into the category of securities.
Gensler reiterated that the agency should focus on "rules of the road" applicable to cryptocurrency sales and intermediaries, such as brokers and exchanges, to support proper disclosure. Gensler said the experience of the Great Depression taught policymakers "the importance of disclosure provisions because information about securities creates a public good."
He pointed out that the total value of these possible securities assets in the crypto market is about $600 billion, accounting for less than 0.25% of the global capital market. Gensler's remarks came just one week after Trump was elected president. Trump had previously said that he would fire Gensler after taking office. Gensler may resign after his term as chairman ends, or he may choose to continue to serve as a commissioner of the U.S. Securities and Exchange Commission.
Gensler also said it was a great honor to serve the U.S. capital markets and he was proud of his efforts with his colleagues at the SEC to protect American investors.
Bitcoin Technical Analysis
Economies.com said that Bitcoin initially broke through the intraday bullish trend line and started a potential bearish correction in the next trading day. It is worth noting that a break below $90,000 will push the price to test $87,025 as the first correction target.
A break above this target represents the key to a rise to $83,165 as the next negative target, while a break above $90,000 will reactivate the positive scenario and move into the $94,000 area in the short term.
