Bitcoin (BTC) Price Fails to Rebound as Binance Risk Looms
From November 01 to December 14, Bitcoin (BTC) price lost about 11.39%. In the meantime, the S&P 500 gained about 3.61% as the markets start to price in a possible Fed pivot.
If both crypto and stocks fell due to the aggressive Fed tightening, the question arises is why Bitcoin isn’t responding to Fed pivot hopes as equities are. The answer is that the world’s largest digital asset has to constantly deal with negative crypto-specific news, like the FTX fallout.
Every time Bitcoin attempts to stage a relief rally - down about 77% from its peak - the crypto ecosystem yields a negative story that impacts investor confidence in Bitcoin. In recent days, the crypto community has had its eyes on Binance - the world’s largest crypto exchange - that is experiencing large outflows.
While Binance insists that it remains financially healthy to sustain higher-than-usual withdrawals, the exchange’s CEO did warn staff of “bumpy” months ahead for the Chinese business. Given the challenging near-term outlook for crypto assets, here is a look at which Congress members have Bitcoin, and generally crypto, exposure.
Rep. Madison Cawthorn tops the list. The Congressman has been actively buying Bitcoin above $33,000. This means his positions are at least 50% underwater. Democrat Marie Newman of the house trades in Grayscale Bitcoin Trust (GBTC), also at levels above the $30,000 mark.
Similarly, Republicans Ted Cruz, Michael Waltz, and Cynthia Lummis Wiederspahn were all buying Bitcoin in the hope the world’s largest digital asset can rebound after falling to low $30,000s.
As the overall risk sentiment surrounding the markets is still pretty negative, investor confidence in crypto is surely at multi-year lows.