Crypto market dips as investors await Federal Reserve meeting

A slump in the crypto market was witnessed today with Bitcoin and other smaller tokens such as Ether, BNB and XRP experiencing a drop in value. Speculators tread cautiously in anticipation of the Federal Reserve meeting this week, which could potentially suggest extended periods of increased interest rates.

Bitcoin, the most significant digital asset, fell to its lowest value in a week at one stage today, April 29. However, it managed to minimise some of this decline, trading at a reduced 2% at US$62,505 at 12.30pm Singapore time.

The Depository Trust Company, which is responsible for providing settlement and clearing services in the US, announced on Friday that crypto-linked Exchange-Traded Funds (ETFs) would not be granted collateral value for line-of-credit facilities. This announcement has sparked discussions on the potential repercussions for the digital-asset markets.

Furthermore, the demand for approximately a dozen US spot Bitcoin ETFs continues to lessen. The 2024 advance of Bitcoin has slowed to an estimated 47%, a significant decrease from over 70% in mid-March when the token reached a record high of nearly US$74,000, reported Bangkok Post.

In related news, Thai police apprehended multiple individuals and confiscated over 650 cryptocurrency mining devices valued at over 200 million baht in Samut Sakhon and Ratchaburi, following an investigation into suspected electricity theft. The high-profile crackdown involved officers from the Cyber Crime Investigation Bureau (CCIB) and Provincial Electricity Authority (PEA) officials, who targeted the locations due to their exceptionally high power usage.

The first spot was located within the compound of a temple in tambon Nong Song Hong, in Samut Sakhon’s Ban Phaeo district. Here, the officers discovered 187 devices used for cryptocurrency mining. A warehouse compound in Ratchaburi yielded a further 465 electronic devices, including phones, computers and tablets.

Meanwhile, the Securities and Exchange Commission of Thailand (Thai SEC) declared war on unauthorised digital asset services, aiming to safeguard investors from financial pitfalls.

Pornanong Busaratrakul, Secretary-General of the Thai SEC stated that at the meeting on April 19, it was resolved to order the SEC to submit information on unauthorised digital asset service providers to the Ministry of Digital Economy and Society.