Will FOMC minutes give the crypto market a boost?

GB Market Commentary 17/08/2022

by Marcus Sotiriou

Bitcoin’s volatility has fallen over the past week or so, yet sellers have been dominant as there is uncertainty around FOMC minutes being released this evening. The minutes will give an indication of the Federal Reserve’s stance and when they may begin to slow the pace of rate hikes.

Technical analysis tells us that Bitcoin faces a critical test over the coming days, as the 200 weekly moving average sits just below the current price of $23,700, at around $23,000 – failing to hold this level as support will suggest there is further downside to come over the following weeks and the market’s reversal may be delayed.

Institutional demand continues to surge as crypto and web3 investment firm CoinFund have announced the launch of a $300 million fund.

According to a statement released today, the new fund is backed by institutional investors and family offices. New backers of the fund include the Teacher Retirement System of Texas, Adams Street Partners, StepStone Group, Accolade Partners, and Theta Capital Management.

Managing Partner David Pakman, who is leading the new fund, said, "in my 30 years in tech, I have never seen a bigger opportunity than crypto and web3. We look forward to working with ambitious and driven entrepreneurs to build a permissionless, decentralized and community-owned internet, rewire the global financial system, and unlock enormous value for intellectual property.”

The tough market for fundraising faced by crypto startups — Despite fundraising for crypto startups declining in the second quarter by 22%, the industry’s biggest backers have continued to raise more capital. For example, established crypto venture capital firm a16z announced a $4.5 billion fund in May for crypto and blockchain startups.