The Global Financial Stability Report released by the IMF has discussed implications of crypto currency on the real economy.
Meanwhile, US is also sanctioning Russian miner BitRiver and EU forces Binance to crack down on their users in Russia.
Brussels’ concern over the national security threat they pose through potential ties with people outside the country’s boundaries who may be using these platforms for financial gains bypassing sanctions imposed.
Nonetheless, the elephant in the room is the raising of CBDC (Central Bank Digital Currency) which are at the moment competitors of the other Digital Currency that we got used to in these last 20 years, such as Bitcoin and Ethereum.
Last 24 hours per Bitcoin have not been the best ever.
In this hour is pulled from the shirt from Bulls and Bears in their fight.
Moreover, the speech during the day from the IMF attentioned possible involvement of crypto assets into some economic issues we might fight.
Giving the responsibility also to some kind of political decisions that should be taken in order to keep effective sanctions on Russia.
The price of BTC/USD after falling to 38.600 dollars, quickly recovered and is now close to 43000$. Despite this drop in technical situations on a short term basis remain contrasting: due to the strength of the two factions.
For those who believe prices will continue upward. A break above 48200 could provide new directional signals that would lead us into a new clear upward trend.
Otherwise, prices will continue to bounce around the first obstacle in the price range of 44,000 – 45,000 dollars.
The great indecision of investors about Bitcoin is also fomented due German politicians who have proposed an initiative to regulate digital currency Bitcoin.
The plan is revealed by Netzpolitik, a German organization for online culture and technology, which could lead to a total ban of Bitcoin trading in order to reduce energy waste.
Cryptocurrency mining is an energy-consuming process that many countries would like to regulate. Bitcoin’s consumption rate per year can easily compete with some of their most power hungry industries. Its annual consumption is around 139 TWh which is almost half of the UK consumption of 2021 (265 TWh).
Even if recently the European Commission voted against a law proposal which would have required to formally Ban all Proof of Work based blockchain (and Crypto) the fear for investors remains.
Meanwhile, Bitcoin gets a legal tender status in Portugal (at the moment limited to Madeira islands), the interest of people towards Satoshi Nakamoto’s cryptocurrency is not so encouraging.
A research done on Google trends related to major digital currencies shows some discouraging signs when it comes down to how many searches are being made for this currency online and whether they’re interested or concerned by its rise in value over time.
At press time BTC/USD is down 0.81% trading at 40,140 USD
