Federal Reserve ready to open its doors to crypto firms

[Redator]

While Bitcoin is still weighing its options—whether to make another run toward the $116,000 zone or crash below $100,000, dragging millions of dollars in trader capital with it—news has emerged that the US Federal Reserve is considering introducing a new type of payment account.

These accounts would grant American fintech and crypto companies direct access to central bank systems, including FedNow. Of course, these companies would be required to comply with the same risk management standards as traditional banks, but access to such infrastructure could be a game changer.

Firstly, this could significantly speed up transactions and reduce costs. Traditional bank transfers often take days to complete and involve intermediaries, whereas direct access to Fed systems would enable near-instant payments at lower fees. Secondly, the move could foster innovation in the financial sector. Fintech firms would be empowered to develop new products and services built on more efficient and modern infrastructure. This could lead to the creation of entirely new types of financial instruments and platforms tailored to the needs of consumers and businesses.

Thirdly, such a step could broaden participation in the financial system. Companies that have previously struggled to access banking services could tap directly into central bank systems, potentially boosting the development of small and medium-sized enterprises.

However, it's important to note that the introduction of such accounts also carries risks. There would need to be robust protection against cyber threats and fraud, as well as strong enforcement mechanisms to ensure compliance with risk management standards. Besides, potential impacts on competition within the banking sector must be considered to ensure equal conditions for all market participants.

Trading recommendations

As for Bitcoin's technical setup, buyers are currently focused on reclaiming the $109,300 level, which opens a straight path to $111,600, and from there it's a short ride to $113,800. The furthest bullish target remains the high around $116,300 — breaking above this level would indicate a strengthening bull market. In the event of a drop, buyer interest is expected at $106,700. A move below that zone could quickly send BTC toward $103,400, with the most distant bearish target being the $100,000 area.

Regarding Ethereum's technical picture, a solid consolidation above $3,926 would pave the way to $4,056. The ultimate bullish target is the high around $4,191 — breaking through this level would confirm the continuation of the upward trend and revitalize buyer interest. In case of a decline, buyers are expected around $3,803. Dropping below this support could push ETH down to around $3,655, with the furthest target set at $3,505.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.

The material has been provided by InstaForex Company - www.instaforex.com