Bitcoin (Bitcoin) It quickly rose above $40,000 in early trading in New York on Thursday, losing momentum midway because traders decided to make short-term profits.
The benchmark cryptocurrency fell 12.08% after reaching a maximum of $40,440 on Coinbase. It reached an intraday low of $36,410 before the opening of the London market on Friday, demonstrating the upward resilience of traders close to the $40,000 level.
Technology and imminent regulations
Concerns about Stricter cryptocurrency market regulations This created resistance to the already unstable but stable Bitcoin price rebound.
Recall the BTC/USD exchange rate Fell to $30,000 May 19 after the news of the ban on crypto trading in China spread.
In the same week, the administration of US President Joe Biden (Joe Biden) required regional cryptocurrency investors to report Transactions over $10,000 To the IRS, this puts even greater downward pressure on Bitcoin and similar digital assets.
Therefore, within 2 weeks @elonmusk @Snowden @China with @POTUS We are all #Bitcoin. Environment, safety and taxes… After each message, the value drops drastically.. Is this a simple coincidence? Or is it a wise plan? No matter it is w, chance is knocking at the door! !
-Nicky (@NickyThissen) May 24, 2021
At the same time, related to High inflation Prevent Bitcoin from pursuing a deeper downtrend. The latest large-scale inflation report in the United States shows that this figure is around 4.2%, which is about 2.2% higher than the Fed’s expectations.
Ideally, this might prompt the U.S. Central Bank to reduce its current expansion policy, but officials agreed that the inflation spike is “temporary” in nature.
Different fundamental signals have pushed the price of Bitcoin into a volatile trading range, with US$35,000 acting as temporary support and US$40,000 acting as temporary resistance.
Wood feeds the bullish fire
At the same time, Cathie Wood, chief executive of Ark Investments, tried to quell concerns about stricter scrutiny of Bitcoin entities.
Well-known technology investors spoke at the Consensus 2021 conference earlier this week Unable to turn off cryptocurrencyReiterated her view that the regulator will eventually need to put its own ideas on blockchain assets.
Wood said: “I think the competitive dynamics in other parts of the world are helping us in the United States. I think it’s good.” Said in an interview last week.
Regarding the decline in institutional investment in the cryptocurrency sector, Wood pointed out that investors have suspended the inflow of funds to Bitcoin and other rival assets due to the worrying environmental conditions.Elon Musk asked the same question in the benchmark Tesla decided to stop receiving Bitcoin payments electric car.
However, the billionaire entrepreneur later supported the North American Crypto Miners Alliance to track and reduce crypto-related carbon emissions.
“Half of the solution is: understanding the problem,” Wood Say On her consensus meeting address.
“For miners, of course in North America, the willingness to review the amount of electricity generated by renewable energy will make this topic insignificant and will encourage faster adoption of renewable energy, or it will replace this place.”
She added that as the green image of cryptocurrencies continues to improve, institutional purchases in the Bitcoin market will resume.
Wood’s ARK increased its holdings of Coinbase stock (COIN) last week, buying another 223,181 units of stock to boost Net exposure More than $1 billion of stocks are listed on the Nasdaq.
The views and opinions expressed here are only those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, so you should conduct your own research when making a decision.