It is clear the recent executive order signed by Joe Biden regarding crypto regulation that everyone was so excited about isn’t enough to keep the bitcoin price flying high. At that time, the asset rose to about $43,000, which while not great, was considerably higher than where it had been in recent days. Now, it looks like the currency has dropped to a low of $39,000 per unit. Thus, Biden does not possess the magic that so many analysts seemed to think he had.
The Bitcoin Price Suffers Further
At the time of the signing, the currency’s price was up by about eight percent. Sadly, the stamina didn’t last given that bitcoin has now fallen by roughly $4,000 in just 24 hours. Laurent Kssis – a crypto exchange-traded fund expert – said in an interview:
The market dropped again around 1:30 UTC during the Asian trading on long liquidation washouts, which are still dominating the leverage markets. Any potential of a pullback seems futile due to the selling pressures these liquidations create.
At the time of writing, it looks like Biden – who has done a thousand things wrong while in office – may not be the culprit behind the currency’s drop. Rather, industry experts and analysts are watching the Fed and the European Central Bank (ECB) rather closely. They are concerned how both entities are going to react to growing inflation, which is presently at a 40-year high, and that fear is causing chaos amongst markets which may be affecting bitcoin and its crypto cousins.
Griffin Ardern – a volatility trader with Blofin – said in a statement:
At present, we already know that the Fed will raise interest rates, so no matter how the U.S. market changes, this thing will happen. The most considerable influence may be the hawkishness of the European Central Bank this week. Any unexpected move by the ECB could trigger a fall in the market.
Chris Vecchio – a strategist at Daily FX – believes that the ECB is likely to delay any decisions regarding the tightening of its financial policies in coming weeks thanks to the potential threat of a liquidity crisis in Europe. He says:
There is a non-zero chance that the European and U.S. sanctions on the Central Bank of Russia provoke a liquidity crunch for European banks that persists for the foreseeable future. In turn, this may be providing the excuse ECB officials need to justify keeping their asset purchase program in place through 3Q’22, and interest rates lower for longer.
Will Inflation Get Even Worse?
John Kicklighter – another strategist with Daily FX – also rang in, saying that consumer prices could potentially go up again, which may affect bitcoin. He said:
The consensus forecast is for acceleration in the headline reading from 7.5 to 7.8 percent. I think the risk is for an even larger increase in prices.
Source: https://www.livebitcoinnews.com/bitcoin-drops-again-despite-bidens-executive-order/