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Markets rally after FOMC meeting, but Bitcoin bears still have a short-term advantage

Published 12/15/2021, 06:30 PM
Updated 12/15/2021, 08:00 PM
© Reuters

Bitcoin's (BTC) price has been in a down-trend since the $69,000 all-time high on Nov. 10, when the the Labor report showed inflation pushing above 6.2% in the United States. While this news could be beneficial for non-inflationary assets, the VanEck physical Bitcoin exchange-traded fund (ETF) denial by the U.S. Securities and Exchange Commission (SEC) on Nov. 12 threw some investors off-guard.

Bitcoin/USD price on Coinbase (NASDAQ:COIN). Source: TradingView

While the ETF request denial was generally expected, the reasons given by the regulator may be worrisome for some investors. The U.S. SEC cited the inability to avoid market manipulation on the broader Bitcoin market due to unregulated exchanges and heavy trading volume based on Tether's (USDT) stablecoin.

Bitcoin/USD at FTX (orange, left) vs. U.S. 10-year Treasury Yields (blue, right). Source: TradingView
Bitcoin options aggregate open interest for Dec. 17. Source: Coinglass.com

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