Bitcoin fell to 2-week lows as Fed and BoJ held rates steady; New York sued prediction market Kalshi, while analysts predict potential $400k Bitcoin peak post-midterms.
Regulation & Gov ·
Bitcoin dropped below $62,500 this week, marking a two-week low, after initial gains fizzled despite supportive macroeconomic data. The asset had rallied to $67,000 following better-than-expected US CPI inflation figures, but bearish sentiment persisted through the week. Neither the Federal Reserve's decision to hold rates unchanged nor the Bank of Japan's matching pause proved sufficient to sustain momentum, with the final leg downward described as "quite painful."
Regulatory pressure on crypto derivatives intensified as New York filed a lawsuit against prediction market Kalshi, alleging illegal gambling operations without proper licensing. Separately, analysts project Bitcoin could peak near $400,000 within less than two years, with the major rally potentially commencing after the US midterm elections conclude. Circle, the stablecoin issuer, expanded its blockchain patent portfolio substantially through an acquisition of nearly 1,000 patents from IBM, covering core blockchain technology, banking, and financial services applications.
Open questions include whether the predicted post-midterm rally will materialize and whether regulatory actions like the Kalshi lawsuit will reshape the prediction market landscape. The timing and magnitude of Bitcoin's next sustained upswing remain uncertain amid mixed central bank signals and persistent market volatility.