Bitcoin rallied to five-month high last week with the price above $23,000 currently. The price consolidation still continues while the RSI is set to leave the overbought zone. The bears are testing bulls’ resolve and in medium term perspective there are no signs bears may wrestle the control away from bulls short of surprise changes in market sentiment.
Markets have paused ahead of Federal Reserve’s two-day meeting starting tomorrow. It is widely expected the central bank will raise interest rates by 25 basis points after data showed the personal consumption expenditures index - the inflation gauge closely watched by policy makers - moderated further in December. With investors awaiting the Fed’s outlook on monetary policy, lawmakers in European Union plan to introduce a digital euro bill while they imposed limitations on bank holdings of cryptocurrencies, and Moody’s is developing a scoring system for stabelcoins.
The European Commission, the executive body of the European Union, will publish on May 24 a bill to introduce a digital euro while the European Central Bank has yet to decide whether to issue a central bank digital currency (CBDC).
Meanwhile the European Parliament's Economic and Monetary Affairs Committee voted to impose strict restrictions on banks holdings of unbacked assets such as Bitcoin and Ether. Before additional rules are proposed “banks will be required to hold a euro of own capital for every euro they hold in crypto."
Moody’s, a major agency whic provides credit ratings for publicly-traded companies, is working on a system to score up to 20 stablecoins based on the quality of their reserves attestations.
