“Grave Mistake” – Joe Biden Unveils Game-Changing Crypto Roadmap After $2 Trillion Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana Price Crash
01/30 update below. This post was originally published on January 29
BitcoinBTC, ethereum and other cryptocurrencies suffered a “tough year” in 2022, according to the Biden administration – fueling a devastating Federal Reserve strike.
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01/30 Update: Cryptocurrency prices have fallen this morning after a surge over the weekend. Bitcoin price has fallen back to just over $23,000 after coming within touching distance of $24,000 yesterday. The pullback comes as the market braces for volatility ahead of a deluge of macro news, with the US Federal Reserve’s latest interest rate decision on Wednesday, followed by monetary policy decisions from the European Central Bank and the Bank of England, and finally the latest. US jobs report on Friday. The ETH price of ether is down just over 1% since this time yesterday, while the rest of the top ten cryptos have seen bigger losses. The meme-based dogecoin and Polygon’s MATIC matic lead the big market lower, each down just over 4%.
“The market has fluctuated significantly this past week, which is not surprising after the massive rally at the beginning of the month,” Rachel Lin, co-founder and CEO of Synfutures, said in an emailed comment.
The recent rise in bitcoin, ethereum and crypto prices has encouraged crypto bulls who are increasingly confident that the crypto market bottomed out in early 2023.
“This variation has caused the relative strength index (RSI) to cool slightly, although it remains uncomfortably high above 80,” Lin added. “So far, the price action seems bullish and it is possible that bitcoin could reach the next resistance level of $25,200 in the coming weeks. However, even if bitcoin ends up again, there is a good chance that it will make a higher low on a larger time frame .”
“Bitcoin is gradually approaching key moving averages,” Alex Kuptsikevich, senior market analyst at FxPro, said in an emailed statement. “The 200 week is just above $24,700 and the 50 week is now at $24,000. A break below these levels would be a strong sell signal. A rally above them could restore confidence in the crypto market. But be prepared for a prolonged consolidation or correction before a decisive step up. Polygon’s matic broke into the top 10 using capitalization, overtaking ethereum rival solana SOL. Over the past 30 days, the price of matic has increased by 52%. Ethereum’s second-tier scaling network came in second by daily users, behind the BNB chain.”
The Bitcoin price has crashed from nearly $70,000 per bitcoin in late 2021 to around $23,000 today, helping to remove $2 trillion from the combined crypto market. Bitcoin has bounced back so far in 2023, adding 40% (topping Goldman Sachs 2023 ranking) and boosting the price of other major coins ethereum, BNBBNB, XRPXRP, cardano, dogecoin, polygon and solana.
Now, the Biden administration has said Congress must “step up its efforts” to regulate the bitcoin and crypto markets, warning that it would be a “serious mistake” to allow ties between cryptocurrencies and the broader financial system to deepen amid warnings of a “global financial collapse.”
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“Over the past year, traditional financial institutions’ limited exposure to cryptocurrency has prevented cryptocurrency turmoil from infecting the broader financial system,” four senior U.S. officials in the Biden administration wrote in a statement, urging Congress to “step up” efforts to regulate the cryptocurrency market after a number of crypto bills are introduced.
“It would be a serious mistake to pass legislation that reverses course and deepens the ties between cryptocurrencies and the broader financial system.”
Over the past year, some of Wall Street’s biggest behemoths have begun making inroads into the world of bitcoin and crypto.
Blackrock, the world’s largest asset manager, has partnered with bitcoin and crypto exchange Coinbase while Goldman Sachs, JPMorgan, Wells FargoWFC have been named in a list of FTX creditors following the exchange’s shock collapse.
Fidelity, one of the world’s largest financial institutions, has drawn criticism from regulators and lawmakers for its 401k plan that allows bitcoin allocations.
“Legislation should not give the green light for regular institutions, like pension funds, to dive headlong into cryptocurrency markets,” White House advisers Brian Deese, director of the National Economic Council, Arati Prabhakar, director of the White House Office of Science and Technology Policy, Cecilia Rouse, chair of the Council of Economic Advisors and national security adviser Jake Sullivan wrote.
Congress should consider expanding the powers of regulators, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), strengthen transparency and disclosure requirements for crypto companies, increase funding for law enforcement and pass so-called stablecoin legislation, they advised, after President Joe Biden’s crypto order last March and the White House’s “comprehensive” framework for crypto development in September.
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The statement has been well received by the crypto industry which is still reeling from the collapse of FTX and its fallout.
“This is the first White House media statement on the subject since the events of late 2022,” Sheila Warren, executive director of the lobby group Crypto Council for Innovation, said in an emailed statement.
“It is rooted in the public policy goals we expect from the executive branch after such events: holding bad actors accountable, protecting investors, and ensuring financial stability. It also recognizes that human behavior leading to recent failures is not new or unique to crypto .”
However, Warren cautioned against heavy-handed or rushed legislation.
“It’s important to have careful, evidence-based conversations and get the legislation right. We support the administration’s call to Congress to establish appropriate safeguards and transparency for those participating in the digital asset space,” she said.
Binance CEO Changpeng “CZ” Zhao, meanwhile, has warned via Twitter Last year’s $2 trillion bitcoin and crypto price collapse will delay “traditional financial players” [adoption] of [bitcoin, crypto and blockchain] technology,” and “will likely cause them to be further behind on the adoption curve, which may have existential implications for them.”
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