Bitcoin’s gains have been cut down somewhat as fresh concerns of a government crackdown on cryptocurrencies have emerged from the United States.
After Powell’s address to Congress regarding regulating cryptocurrencies, the price of Ethereum fell farther away from $3,018.
While cryptocurrencies have recently seen increased inflows as both Ukrainian and Russian residents resorted to cryptocurrencies as an alternate way of payment to dodge sanctions, there are indicators that this loophole may soon be closed. During Biden’s State of the Union address, the president called for a crackdown on cryptocurrencies to seal the door to affluent Russians fleeing the country. Powell, the chairman of the Federal Reserve, threw gasoline to the flames by indicating that he would welcome further regulation to better monitor and regulate cryptocurrencies. As a consequence, all key cryptocurrency pairings have been anxious as a result of these statements.
Bitcoin bulls have been denied at $44,088 and face a drop down to $42,000.
The price of Bitcoin (BTC) recovered all of the losses incurred during the Russian invasion, as cryptocurrencies witnessed increased cash inflows from both Russians and Ukrainians searching for alternative payment methods after both central banks imposed cash withdrawal limits. Since Bitcoin seemed to be prepared for another run higher, both Biden and Powell created some headwinds by advocating for further regulatory action, as it is becoming clear that cryptocurrencies are undermining Russian sanctions. With the heightened negative attention focused on cryptocurrencies, investors are ready to book gains, driving BTC price movement to the south.
As additional conversations continue, a breakthrough might occur at any time. If that happens, it means that bears will fail in their effort to squeeze out bulls and will be stopped out if the price breaks over $44,088 to the upside. After breaking past $45,261, the move would accelerate, with a rapid surge to $48,760 and, from there, setting Bitcoin to break back above $50,000 next week.