Dogecoin Surges as Crypto Market Remains on Edge

Dec 15, 2021

Dogecoin Surges as Crypto Market Remains on Edge

Dogecoin's rise on Tuesday survived a further market dip in the run-up to a major Federal Reserve meeting and increasing regulatory concerns.

On Tuesday morning, Tesla CEO Elon Musk expressed support for Doge, tweeting, "Tesla will make certain things purchasable with Doge and see how it works." Musk tweeted at 5:34 a.m. Eastern time, prompting a near-instant spike in the "meme" token, which was up 20% to $0.1913 in an afternoon activity.

Meanwhile, most significant cryptocurrencies continued to decline, with Bitcoin down 1.5 percent to $46,800 and Ether down 1.5 percent to $3,770.

The market is nervous ahead of Wednesday's conclusion of a crucial Federal Reserve meeting. The Fed is expected to reduce its Treasuries and mortgage-backed securities purchases by $30 billion in December, more than doubling the $15 billion reductions in November. This issue would rapidly deplete market liquidity, possibly halting asset purchases as early as March 2022. Following that, the Fed is expected to begin raising rates in June 2022, followed by three further increases the following year.

Investors will closely monitor the Federal Reserve's tone to determine whether it signals a steady tightening of monetary policy. Concerns about the Fed adopting a more hawkish tone or policy fueled inflationary pressures. As a result of the fears, Stocks are being sold off on Tuesday, putting pressure on other risk assets such as cryptocurrencies.

Naturally, as the Fed tightens its grip, there will be less virtual money available to invest in fictitious assets — assuming that most cryptos have no intrinsic value and are mainly used for speculation.

Meanwhile, in Washington, the Senate Banking Committee held a hearing on stablecoins. Stablecoins are digital assets with a fixed dollar value backed 1 to 1 by cash or other liquid assets.

Democrats and Republicans conducted political interrogations of industry backers and investor advocates, with both parties looking to be miles apart on a regulatory compromise.

The committee's chairman, Sherrod Brown (D., Ohio), reiterated the Democratic position that stablecoins pose "systemic risks to our economy."Arguing that cryptos have resulted in "wild financial speculation" and those coin issuers are not transparent or decentralized, equating them to unregulated banks.

"It certainly appears to be a possible asset bubble," Brown said, drawing parallels between the emergence of cryptos and the 1929 stock market disaster and the buildup of subprime mortgages and derivatives that rocked global markets in 2008.

Stablecoins serve as a bridge between the actual economy and the "fantasy" business, he continued, underlining the Biden administration's support for more robust regulation.

Sen. Elizabeth Warren (D., Mass.) slammed the industry as well. The coins "are sustaining one of the shadiest areas of the cryptocurrency industry, the sector in which customers are least protected from being defrauded," she added, referring to decentralized finance, or DeFi, networks. Regulators must "take a serious look" at mitigating these dangers before it is too late, she warned.

Republicans said that stablecoins might cut transaction costs, promote financial inclusion, and increase the usage of "programmable money," which could be used for automated transactions and micropayments that are not possible with traditional currency.

"In light of the potential for misuse of these new capabilities, any regulation should be carefully focused and aimed to do no damage," Sen. Pat Toomey (R., Pa.) stated in a statement.

Everyone agreed that regulation is necessary, even if consensus remained hard. Toomey, for example, argued against the White House's recent suggestion that all coin issuers register as banks or insured depository organizations, claiming that doing so would "stifle innovation."

More rational, he stated, would be a transparent asset and redemption policies, required audits, and improved financial monitoring standards.

The partisan divide is not confined to Capitol Hill. Hester Peirce and Elad Roisman, the two Republican Securities and Exchange Commission commissioners, slammed SEC Chairman Gary Gensler's regulatory approach. They stated that his program "includes no mention of any regulation of digital assets," implying that the market should anticipate more questions than answers on whether cryptos qualify as securities under existing law or not.

"Such silence emboldens fraudsters and impedes law-abiding participants," Peirce and Roisman wrote.

However, Gensler has repeatedly emphasized that specific cryptos qualify as securities under current law. Additionally, the SEC has regulated the industry via enforcement actions.

The sole point of agreement is that crypto requires new rules. However, the debate about what they should be is far from resolved, leaving the market subject to tweets and political polarization that shows no signs of abating.

Subscribe Our Newsletter

NFL Sunday Ticket is The New Goal of Apple. A Victory Will Reshape the Streaming Industry
NFL Sunday Ticket is The New Goal of Apple. A Victory Will Reshape the Streaming Industry

Apple thinks that sports are one of the last holdouts of scheduled content with mass market appeal and significant advertising potential for its Apple TV+. Apple is said to be looking for the NFL Sunday Ticket subscription service. Here the issues come in.

Companies
15 Chip Stocks That Are Real Bargains. They Just Keep Getting Cheaper.
15 Chip Stocks That Are Real Bargains. They Just Keep Getting Cheaper

When we conducted a filter in December to identify the Sox's 14 cheapest stocks in terms of projected price/earnings ratios, the average for the index as a whole was 30.5 times.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Alexander

Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto
Generating income from digital assets is a hot topic, and participating in blockchain networks offers intriguing possibilities beyond just trading.  2024 saw Ethereum’s validator count grow impressively to well over a million, all securing the chain. This signals a clear trend: running a crypto node is a growing avenue for direct network involvement and potential […]

discover
The Power Of Liquidity For Crypto Exchanges

Tamta

The Power Of Liquidity For Crypto Exchanges

As of today, nearly 600 cryptocurrency exchanges stand ready, inviting investors to trade thousands of different cryptocurrencies and gain financial profits.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors

    Hazem

    The Cup and Handle Pattern – How Trade Using This Bullish Indicator?

    Cup and Handle Pattern – How to Predict Price Breakouts?
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.