Bitcoin price is facing a $60k resistance level. However, most people think it’s the usual profit-taking by the big dogs in the cryptocurrency space.
Make no mistake. Profit-taking is in vogue.
However, there is a new infusion of fear, uncertainty, and doubt (FUD) in the markets as events are causing many to pause and think twice about their decisions to dip their toes in the cryptocurrency space.
Coinbase Listing Pushed Bitcoin Prices
For the good news, part of the current drawdown in Bitcoin’s price has to do with the fallout of the Coinbase effect.
One of the world’s largest cryptocurrency exchanges by volume got listed in the US markets barely two weeks ago.
So, we saw a bounce from the markets to a little over $64,000, but everything went sliding.
BTCUSD Chart By TradingView
The good thing, however, is there is no smoke without fire.
Government agencies took notice, and we now have a few signals from the Biden administration to regulate the American cryptocurrency space.
It comes after a few comments by Fox Business’s Charlie Gasparino concerning this.
Gary Gensler’s Appointment as US SEC Chairman to Cool Issues?
On the flip side, Gary Gensler’s appointment to the United States Securities and Exchange Commission (SEC) could make things easy for the cryptospace.
Gensler is an MIT Professor who has dipped his toes in the space and, from the looks of it, might be on crypto’s corner when all is said and done.
So, prices will recover and hit the $60k ceiling once the markets get excited again.
SEC Faces Same Old Challenges
One problem the US SEC has had in the past few years has been the classification of the different types of cryptocurrency tokens into securities and with its sister agency the Commodity Futures Trading Commission (CFTC) as commodities.
With “one of us” at the SEC, this process will become fluid, but not necessarily easier.
The same wheels will keep turning. Only in the direction of cryptocurrencies this time.
As new cryptocurrency tokens emerge every day, the SEC will have its hands full in trying to sort this dilemma out with her sister agency.
Ripple’s New Discovery Conference and SEC’s Position Still Hold Sway Over Cryptocurrency Prices.
As Ripple Labs and the US SEC extend their legal issues, we are going to see a lot of the negative splashes continue to affect Bitcoin.
The core of the legal question that underpins Ripple’s case has to do with XRP.
The fundamental use-case scenarios for many cryptocurrencies could change, and thus investor reliance will be swayed.
Already, feelers point to the SEC’s resolve to see the case to a conclusion.
Though we have “one of ours” as SEC Chairman, the SEC will still keep its sting rather than lose it.
Some of that sting is upsetting the crypto markets.
