This week's cryptocurrency market saw BTC fluctuate sharply amid developments in US monetary policy and uncertainty over the outcome of the Bank of Japan meeting. The focus was on events including the outflow of approximately 4,000 BTC from Liquid Network and the progress of the CLARITY Act vote.
BTC/JPY's weekly closing price for the week of 9/6–9/12 fell approximately 4.88% from the previous week to ¥11,873,950. ETH/JPY fell approximately 0.25% to ¥387,920. Approximately 4,000 BTC flowed out of Liquid Network, of which approximately 3,400 BTC was returned, while approximately 600 BTC remained outstanding. The market moved lower amid concerns that the outflow funds could be sold.
Expectations of another rate hike at the next FOMC meeting increased following the US PPI and CPI releases, sending the 10-year Treasury yield close to 5%. BTC briefly plunged to around $76,000 before rebounding to around $80,000 on stock market buying, but was subsequently pushed back to around $77,000 as the probability of another FOMC rate hike rose again.
Macro uncertainty persisted, with spot ETF inflows coming to a halt. Large institutional investors were confirmed to be reducing and hedging their positions, affecting capital flows across the cryptoasset market as a whole.
This week, a 25-basis-point rate hike at the FOMC is viewed as almost certain, while the possibility of an additional rate hike is also expected to be discussed at the Bank of Japan meeting. Depending on the progress of the CLARITY Act vote, regulatory uncertainty in the industry could be resolved, while delays or difficulties in passing the bill could also weigh on the market.