Bitcoin retreat continued last week. Bitcoin price is above $20500 currently, after falling under the $28850-$30700 support range. A glance at daily chart reveals Bitcoin market is oversold – the RSI indicator is in the oversold zone. That explains the current rebound as willing buyers are buying the dip. However the bias remains bearish and it is not clear if forced selling is winding down.
Bitcoin is extending gains today after a rebound following a drop Saturday below the $19,783 all-time high it posted in December 2017. There was widespread belief Bitcoin would not fall below the previous cycle high. However financial markets are gripped with recession concerns after the Federal Reserve hiked rates 75 basis points last Wednesday and stated will continue hiking rates to bring the consumer price index growth to under 2% target rate. Against the ongoing monetary tightening backdrop the US financial watchdog launched inquiry into insider trading at crypto exchanges and European Union Finance Commissioner called for a speedy passage of crypto law, while New York City Mayor was reportedly plans to ask New York Governor to veto State’s Bitcoin mining ban.
The US Securities and Exchange Commission (SEC) has begun an investigation into whether crypto exchanges have sufficient protections against insider trading. The SEC has sent a letter to a major crypto exchange asking about the kinds of protections it has in place against insider trading. The letter was sent after the collapse last month of Terra’s UST stablecoin and the associated LUNA token.
European Commissioner for Financial Services Mairead McGuinness urged the European Union's lawmakers to speed up passage of its crypto-asset regulatory framework. The Markets in Crypto Assets (MiCA) framework will set up licensing requirements for crypto-asset service providers and cryptocurrency issuers that would apply for all 27 member nations. The draft law was Introduced in 2020. McGuinness stated MiCA rules will be the right tool to address the concerns on consumer protection, market integrity and financial stability.
New York City's mayor Eric Adams is opposed to a recent bill passed by the New York State senate to impose a two-year moratorium on new fossil fuel-powered proof of work (PoW) crypto mining operations. He said cryptocurrency is an undeniable part of the state’s economy thanks to the “billions of dollars that are spent on cryptocurrency.” Adams told he plans to ask Governor Kathy Hochul to “consider vetoing the bill that is going to get in the way of cryptocurrency upstate.”