Crypto Moves Cautiously, Markets Eye the Fed and Regulation
The crypto market moved cautiously at the start of the week, with Bitcoin and Ethereum recording slight gains but yet to show a truly strong momentum. Bitcoin is currently hovering around $67,501, while Ethereum is trading around $2,049.81. This movement indicates that investors remain active, but are not yet fully prepared to take aggressive positions amid the macroeconomic and regulatory uncertainty that continues to loom over the crypto market.
In terms of sentiment, the crypto market is currently caught between two major currents. On the one hand, digital assets remain sensitive to the direction of US interest rates and changes in global risk sentiment. On the other hand, regulatory clarity in the US is beginning to provide a clearer foundation for the market. Reuters reported that the SEC released long-awaited guidance on March 17, 2026, dividing crypto assets into several categories and confirming that securities rules only apply to the digital securities category. This step is considered important because it provides a clearer picture for industry players and investors.
However, the positive sentiment from the regulatory guidance is still limited by the stalled progress on broader crypto legislation in the US. Reuters reported that the Clarity Act deliberations have again hit a snag due to the debate over stablecoins, including yield-generating products. Citigroup even cut its 12-month target for Bitcoin from $143,000 to $112,000, and Ethereum from $4,304 to $3,175, citing regulatory stagnation as reducing the likelihood of institutional catalysts in the near term. This suggests that the crypto market currently needs stronger policy support to establish a more solid uptrend.
As a result, Bitcoin and Ethereum are likely to remain volatile in the short term. As long as the market closely monitors the direction of the Fed's policy, US regulatory developments, and global risk sentiment, crypto gains could potentially remain limited. If regulatory clarity improves and macroeconomic pressures ease, digital assets could find new support. However, for now, the market appears to be in a waiting phase, with investors tending to be selective and responsive to any new catalysts.
Cause:
The limited movement of crypto is driven by a combination of macroeconomic and regulatory sentiment. From a macro perspective, the market remains sensitive to the direction of US interest rates and unstable global conditions. On the regulatory side, the SEC's new guidance provides clarity, but the stalling of major legislation like the Clarity Act has prevented optimism from fully developing.
Impact:
This situation has kept Bitcoin and Ethereum volatile, with potential upside yet to be fully realized. Investors are tending to be more cautious, while the market awaits new, more decisive catalysts, both from monetary policy and regulation. (CP)
Source: Newsmaker.id
