Bitcoin is consolidating above $66,000

31 Temmuz 2024

Today’s market analysis on behalf of Samer Hasn Market Analyst and part of the Research Team at XS.com

Bitcoin is consolidating above $66,000 today after the losses it suffered over the past two days when it touched $70,000.

As on many previous occasions, touching levels above $70,000 represents a sharp inflection point to the downside despite the supporting factors at the time. I believe that a reversal from $70,000 levels on a continuous basis is frustrating the markets.

Today, uncertainty prevails, even with a series of recent catalysts, most notably Donald Trump’s promises to the cryptocurrency industry – a political effort, of course, either to fund his campaign or to attract voters.

Trump has pledged – if he wins the presidential election – to create a government reserve for Bitcoin, support stablecoins, and make the regulatory environment more friendly to the sector. However, many of these promises have been met with criticism regarding their reality and feasibility.

A prominent critic was The Editorial Board of The Wall Street Journal, which wrote the day before yesterday about Trump’s contradictions in his policy towards cryptocurrencies, as he called for deregulating the industry but at the same time calling for more government policies to regulate the sector. The Editorial Board also believes that this intervention in cryptocurrencies would distort their liberal nature. The editors also criticized the plan to form a Bitcoin reserve that was proposed by Republican Representative Cynthia Lummis.

What may be really good about Trump’s promises is his removal of the chairman of the Securities and Exchange Commission, Gary Gensler, who is widely accused in the industry of being hostile to it due to procedures and lawsuits that restrict the market and are not based primarily on clear regulations.

These criticisms of Gensler continued yesterday as well, with Brad Garlinghouse, CEO of Ripple Labs, the developer of XRP, accusing the SEC of “hypocrisy” in classifying cryptocurrencies as securities and in regulating the sector. This scathing criticism from Garlinghouse came after the SEC amended the Binance case file and reclassified Solana, Cardano, Polygon, and Cosmos after they were classified as securities, but without reclassifying XRP.

So yes, the crypto sector certainly needs a clearer and more supportive regulatory and legislative environment to end the flood of lawsuits and accusations of violations – many of which the courts have repeatedly ruled against – targeting companies operating in the sector.

I also believe that this is one of the key factors that cryptocurrencies need to support their widespread adoption, especially in the country that hosts the largest financial markets in the world. Without it, cryptocurrencies may remain subject to speculative movements primarily, far from being adopted as a comprehensive and global financial system.

 

Zaid Barem / YMM