Where will Bitcoin go amid global political outrage?

Not only was it set back by Tesla’s announcement that it would no longer accept Bitcoin (BTC) as a payment method, but it was dragged further down by a steady stream of government and regulatory protests.

From China’s crackdown on mining to regulatory warnings against Binance, a number of government actions have helped keep the cryptocurrency sideways or backwards. Industry observers mostly agree that such measures had a negative impact on the market, but also that they were not as negative as in the past.

So the question is, where will Bitcoin go amid the global political outcry?

Where Bitcoin Will Go Amid Global Political Outrage – Bitcoin and Cryptocurrencies Are Falling

In fact, commentators claim that Bitcoin, stubbornly holding onto the $ 30,000 resistance, is a sign of resilience, but it may also be a sign of weakness. At the same time, they claim that actions by governments and regulators cannot tame cryptocurrencies in the long term, particularly that Bitcoin is designed to evade centralized control.

Lou Kerner, Partner at Blockchain Coinvestors, said, “Government action, particularly in China, has had a significant negative impact on the crypto market.

China reminded its financial institutions of its old anti-speculation law on May 18, when BTC fell from around $ 58,000 to $ 45,000. This news then caused BTC to drop as low as $ 35,000 within 3 days.

In June there was crackdown on Bitcoin mining in China. Along with other government measures, many Chinese have been forced to liquidate while demand for crypto in China has declined. said Kerner.

Other analysts agree with this view, even though they argue that government or regulatory action is not the only cause of the current plight in the market.

“I think the biggest factor negatively impacting crypto prices is the impact of recent regulatory and government moves from China to the US and elsewhere,” said Fawad Razaqzada, an analyst at CoinDesk and an analyst at ThinkMarket. He also said the dollar’s recent rally was another culprit.

In addition to China, the United States is also a site of government intervention regarding cryptocurrencies. Over the past few weeks we’ve seen calls from the Internal Revenue Service (IRS) calling for stricter regulation, investigations by the Commodity Futures Trading Commission (and the Department of Justice and IRS) into Binance, and lawmakers calling for stricter rules on the face of ransomware Attacks.

It’s just the United States. Over the past month, regulatory and government action has been taken elsewhere, from the UK and the EU to Singapore, Thailand and others. During that time, the total value of the crypto market has dropped from over $ 2 million to around $ 1.3 million.

Where bitcoin will go amid global political outrage – resilience in the face of regulation quy

Most analysts, however, say the market has been better than some expected, especially given the scale of the crackdown on China.

“I think these government measures will have an absolutely negative impact on prices in the short term. However, we’ve now seen that Bitcoin doesn’t want to go below $ 30,000 – it hasn’t dropped back to $ 3,000, “said Mark Jeffery, founder / CEO of the Guardian Circle.

He suggests pushing Bitcoin down is like “trying to hold a beach ball underwater”. He also stressed how it has so far benefited from an increasing number of whalers and whalers, or owners of many BTC, willing to amass money during a downturn.

“The old purses just refuse to sell – no matter what. They know that Bitcoin has held its value better than the dollar for 10 years, ”he said.

Fawad Razaqzada also said the incentive should be drawn from the fact that Bitcoin didn’t drop to $ 10,000, the level before the market picked up again in late 2020.

“If you look at Bitcoin prices, they’ve been moving sideways between $ 30,000 and $ 40,000 for the best two months. The fact is, we are not seeing significantly lower prices due to increasing regulation and government action. This shows the resilience and strength of Bitcoin and other cryptocurrencies, not the weakness, ”he said.

However, while Bitcoin has hit what appears to be a strong level of support, it should be remembered that government action, along with other factors, caused it to fall from nearly $ 65,000 fairly quickly.

“The strong negative market reaction to these movements shows the early stages of the market and the lack of buyer depth as Chinese sales accelerate and buyer numbers gradually decline,” said Lou Kerner of China.

An abomination to the government

Despite the obvious fact that Bitcoin has already halved from its all-time high of around $ 65,000, industry figures are confident that there isn’t really much that governments can do to keep it down in the long run.

“But I think in the end trying to stop Bitcoin is like trying to stop the internet: you can’t,” said Mark Jeffery.

Fawad Razaqzada also said it will be difficult to completely stop the use of cryptocurrencies.

He concluded,

“I don’t think the authorities can completely restrict access for everyone, anywhere. It is clear that governments are threatened by the rise of cryptocurrencies as an alternative form of payment that could eventually replace or at least complement fiat currencies. “

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