Following a recovery rally over last week, Bitcoin momentum has faded for now with the futures market settling into a tight range ahead of tomorrow’s FOMC meeting. While earlier in the year, Bitcoin had been trading a lot more like a typical risk asset, rallying on USD weakness and fading on USD strength, this dynamic has weakened over recent months. Part of this is due to the supply overhand created through the government selling of seized BTC in both the US and Europe. Additionally, the return of BTC held by collapsed broker Mt. Gox to its creditors has also distorted order flow recently. Fed Impact Looking ahead, ... (full story)