Fed’s Powell Calls For Proper Crypto Regulations As Bitcoin Price Soars Above $20,000

• Bitcoin price surges above $20,000 after a symmetrical triangle breakout.
• Fed Chairman Jerome Powell reckons that a lot of thought has to be given to regulating crypto activities.
• Crypto-assets require the same risk and regulation to level the playing field and stave off the downsides of regulatory evasion.
• Bitcoin price could mark $20,900 if investors avoid early profit booking for a long-term bullish outlook.

Bitcoin price is exploring peaks above $20,000 on Tuesday after holding support at $18,800 for nearly four days. Green shoots are noticeable across the market, led by the Uniswap price’s 16.70% move to $6.60. Ethereum price is trading near $1400 while XRP has only managed a 1.30% swing to $0.47.

The cryptocurrency market’s bullish stint coincides with Federal Reserve Chairman Jerome Powell’s speech “on the opportunities and challenges of the tokenization of finance,” at the Louvre Museum in Paris, France.

Cryptocurrency is a new technology that needs proper regulation – Jerome Powell

Central banks globally have been tested by fire this year amid the impact of the COVID-19 pandemic, dynamic geopolitics and the war between Ukraine and Russia. Addressing participants at the Paris conference, Powell said the normalization of monetary policy had revealed key structural issues within the decentralized finance (DeFi) system.

The US Fed chair added that governments across the board need to approach the regulation of the DeFi system carefully and thoughtfully. In other words, proper regulations should be implemented to address the new technology.

“Should be same risk, same regulation for crypto assets,” Jerome Powell.

Regulation is one way to level the playing field and avoid the dangers of regulatory evasion. Powell reckoned that a lot of work needs to be done on both traditional and digital assets – especially when it comes to stablecoins. Issuers of stablecoins have shown interest in reaching a wider audience. However, this raises the question of whether there is enough regulatory oversight for wider use.

Bitcoin price is starting to reward patient investors

Cryptocurrency investors this year have been forced to grow a thick skin to withstand frequent setbacks and little or no progress to the upside. The largest cryptocurrency recently bled to $18,200 before retreating to $19,500.

However, profit-taking, investor skepticism and external forces attributed to inflation and geopolitical changes pushed BTC price to $18,800. On the bright side, Bitcoin price finally made good on a potential symmetrical triangle breakout, climbing up the ladder to $20,350.

BTC/USD four-hour chart

It could be a big boost if higher support, preferably at the 200-day SMA (Simple Moving Average – purple), holds. OBV (On Balance Volume) confirms that bulls have the upper hand and can easily drive the Bitcoin price to complete the 9.54% triangle breakout at $20,900.

On the other hand, the risk of pulling back is still evident in overbought conditions, as shown by the stochastic oscillator. Short-term traders should consider taking profits at $20,900 to avoid a possible trend correction to $19,500 and $18,800 respectively.