The rapid rise of Bitcoin (BTC) beyond $40,000 in the initial New York trading session on Thursday lost steam halfway as traders sought to lock in short-term gains. After peaking at $40,440 on Coinbase, the leading cryptocurrency lost nearly 12%. Before the London market open on Friday, it hit an interim nadir of $36,410, demonstrating positive tenacity among speculators at the $40,000 mark.
Worries over tighter crypto market rules have hampered what has so far been a steady but bumpy Bitcoin price rebound. After word of China’s crypto activity prohibition reached the press on May 19, the BTC/USD exchange rate plummeted below $30,000.
During the same week, US President Joe Biden’s government took aim at local crypto enthusiasts by deeming it essential to document transactions above $10,000 to the Internal Revenue Service, putting extra downward pressure on Bitcoin and other digital assets. Worries about rising inflation, on the other hand, prohibited Bitcoin from making any more declines.
The most recent major inflation report in the United States showed values of roughly 4.2%, which was almost 2.2% higher than the Federal Reserve’s forecast. In an ideal world, this would have compelled the US central bank to scale back its present stimulation measures, but authorities concluded that inflation increases were “temporary.”
Bitcoin’s price has been forced into a jagged trading range by conflicting technical signals, with $35,000 functioning as temporary support and $40,000 functioning as intermediate barrier. Meanwhile, Cathie Wood, the CEO of Ark Investment, sought to assuage concerns about increased oversight of Bitcoin focused organizations.
The renowned tech investor stated at the Consensus 2021 summit a few days before that it is hard to put an end to cryptocurrencies, expressing her belief that authorities would ultimately need to understand blockchain assets. “I believe that the global competitive dynamic is assisting us in the United States. In a conversation last week, Wood added, “I believe it’s been fantastic.”
Wood said that institutional investors have slowed their financial activities into Bitcoin and other competing assets due to their poor sustainability image. When Elon Musk’s flagship company Tesla chose to discontinue accepting Bitcoin payments for its electric automobiles, he voiced the same problem.
The billionaire industrialist, on the other hand, later funded a North American crypto mining partnership to monitor and minimize crypto-related greenhouse gas emissions. “Recognizing the issue is half of the remedy,” Wood remarked at the Consensus event.
“This audit process of what miners are prepared to do in terms about how much of their energy consumption is produced by renewable energy sources, particularly in North America, is bringing that subject into public light and will inspire an expedition in the use of renewable energy sources over and above what might have taken its position otherwise.”
So in a time period of 2 weeks @elonmusk @Snowden @china and @POTUS all have a huge influence on #Bitcoin. The environment, security and taxes… Huge drop in value after every message.. Is that a simple coincidence? Or is that a smart plan? Either wat, is opportunity knocking!!
— Nicky (@NickyThissen) May 24, 2021
With respect to the crypto’s rising green profile, she noted, institutional purchases in the Bitcoin market will continue. A week before, Wood’s Ark added to its Coinbase stock holdings by purchasing another 223,181 shares, bringing its total investment to the Nasdaq-listed cryptocurrency exchange to over $1 billion.
