Cryptocurrency prices were falling on Monday, April 18, with bitcoin hitting a one-month low, as investors looked for signs that the Federal Reserve might boost interest rates next month.
Bitcoin was down nearly 3% to $39,218 at last check, according to CoinGecko, ethereum was off 3.8% to $2,934 and dogecoin was down 5.1fi to $0.136349.
'A Hawkish Pivot to Curb'
Winston Ma, managing partner of CloudTree Ventures, Author of The Digital War – How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace", said bitcoin is hovering around the key $40,000 level these days as the market keeps its eyes on the Fed."
"In the coming days the Fed chair may reinforce bets that the Federal Reserve will raise interest rates by a half point next month," Ma said. "Jerome Powell will speak at an event on Thursday and later that day take part in a panel hosted by the International Monetary Fund."
Ma said that in the past weeks, comments by his Fed colleagues have hardened expectations they’ll make that move, "as officials extend a hawkish pivot to curb the hot inflation."
If the Fed Chair reinforce the 50bps hike expectation for May, bitcoin and other cryptocurrencies may become subject to further downward pressure, he said.
Fleeing Russia
Meanwhile, David Lesperance, managing partner of immigration and tax adviser at Lesperance & Associates, said that "one of the unintended consequences of Putin’s decision to wage war in Ukraine is that the previously burgeoning Russian blockchain and tech sectors may be permanently crippled."
"Over 70,000 IT workers that have fled the country since the beginning of Russia's invasion of Ukraine in February," he said. "Industry groups and investors with close ties to Russia warn that this exodus is only the first wave and many more of the country's most talented entrepreneurs and technology leaders will soon flee as well."
He added that "while most so-called Golden Visa programs are closed to all Russian nationals-not just sanctioned Oligarchs- there are still a variety of other pathways including skilled workers, start-up visas, refugee and digital nomad options available to those fleeing Russia.”
MoonPay Goes Hollywood
On the regulatory front, Lesperance said that while the blockchain world waits for the outcome of the current jurisdictional battle between the Securities and Exchange Commission and the Federal Trade Commission, Hollywood stars are making a swift march into the NFT universe.
"A key legal question is whether digital assets such as NFTs are securities," he said. "Previously the SEC has already said that it is unlawful for any person to tout a security, like a stock, without disclosing a financial relationship or ownership to the source."
In other words, Lesperance said "celebrities that are being compensated would need to disclose their payment."
"To gauge celebrity interest in NFTs, look no further than the recent funding round announced by crypto-payment company MoonPay, which has focused on the checkout experience of buying and selling NFTs." he said.
Lesperance added that MoonPay said that up to 16% of its $555 million initial Series A funding round came from musicians, actors and other personalities such Ashton Kutcher, Gal Gadot, Gwyneth Paltrow, and Matthew McConaughey.
