InstaForex

September 3, 2021

SEC to tighten control over cryptocurrencies

 Bitcoin, which broke the upward trend line a couple of days ago, has not managed to start a new downward movement. Although it would seem, almost all factors spoke in favor of this, and the lack of fundamental support and technical signals. And yet, even with such a set of reasons, the sellers did not want to join the fight. Thus, at the moment, bitcoin prices have returned to the level of $50,300, but so far haven't consolidated above it. A "double top" pattern may form soon, and a possible downward movement has not yet been canceled. However, we still have to admit that the bears are extremely weak now, and without bitcoin sales, there will be no decline in it.


Meanwhile, US Securities and Exchange Commission Chairman Gary Gensler once again stated that cryptocurrencies need strict regulation. According to him, "finance is trust," so all market participants should feel secure. Digital assets must also meet the standards for protecting investors and combating illegal activities, just like other financial assets. Thus, it can be assumed that the regulation will be further tightened in the United States. Recall that a new tax legislation may soon be published as part of the "infrastructure package," which will impose income taxes on cryptocurrency transactions, and all financial institutions that provide services for digital assets will have to provide all the necessary information about their customers on demand. Simply put, it will no longer be as easy as before to buy and sell bitcoin, as well as other cryptocurrencies.


Of course, this does not apply at all to small and private investors who can independently buy and sell cryptocurrencies from hand to hand or through specialized exchanges located anywhere, and not necessarily in the United States. However, for large and institutional investors, this may mean a decrease in the attractiveness of bitcoin as a means of investment. Although, as we have said more than once, the most important thing for bitcoin is the faith of market participants in its further growth. If this belief is there, then the first cryptocurrency can easily grow to $100,000 per coin. But we are still counting on a new round of decline.


Technically, bitcoin continues to be in an upward trend on the 4-hour timeframe, although the consolidation below the upward trend line allows us to expect a certain fall. Bitcoin spent a little time below the Ichimoku cloud and the $47,500 level. Thus, now, rather, we can talk about the resumption of the upward trend, which still has no valid grounds and reasons. It is hoped that the price will bounce off the $50,300 level. In this case, a fall to the levels of $47,500 and $43,852 is possible.