Daily Bitcoin News Update
$6.0 billion was wiped out of the cryptocurrency market in the past 24 hours as we watched the U.S. Senate subcommittee thrash cryptocurrencies on one hand and let up on the banking sharks on the other.
Scathing testimonies were delivered against Bitcoin and its progeny of over 1,500 cryptocurrencies, and calls were made for strict regulations. Meanwhile, on the other side of the fence, the Senate passed a bill to ease regulations on the banking industry. The Dodd-Frank Wall Street Reform and Consumer Protection Act adopted following the infamous financial crisis of 2008 was voted to be rolled back.
Yes, both events took place side-by-side. The utter indiscretion displayed by the senators is laughable. On top of that, the timing raises giant question marks on their sincerity.
Californian Congressman Brad Sherman, in particular, stood out as a villain to crypto lovers. To him, cryptos are a “crock,” used by terrorists and money launderers. Crypto enthusiasts were quick to point out that the Congressman’s sympathies lie with the financial industry for obvious reasons. (Source: “California Congressman Doesn’t Like Crypto: Who Are His Donors?,” CryptoBriefing, March 14, 2018.)
In case it isn’t clear already, politics is playing havoc on crypto prices. And apparently, there may be ulterior agendas involved.
Anyhow, not everyone was a hardliner at the subcommittee meeting. There were some like Minnesotan Congressman Tom Emmer, who took a more moderate and reasonable stance.
But the dark clouds shrouded the tiny ray of hope. The final takeaway from the meeting was not positive, which is probably why investors panicked.
Chart courtesy of TradingView.com
But as we’ve seen on numerous occasions before, regulators have dilly-dallied on the issue of regulations for the longest time now. Perhaps this uncertainty will continue in the foreseeable future, until reasonable regulations are adopted.
But regulations, as we’ve explained numerous times before, may prove a boon for the crypto industry. After all, regulations help ensure the safety of investors, which should typically attract more investors, not less.
A ban, on the contrary, is another story. That would certainly drive investors straight to the exits. But ask yourself; what are the odds the U.S. government would impose a ban on an emerging technology that poses to change the world as we know it? Exactly zilch!
There’s not even a snowball’s chance in hell that the government would impede the natural process of innovation.
The move would not only receive a severe public backlash, but also push the country back into the crypto stone age while its Russian and Korean nemeses will zoom into the future.
In our view, politics on cryptos will continue and so will the volatility adhered to prices, that is, until we have a black and white regulatory bill in hand. So don’t sweat it!
Just ride out these choppy waves and you’ll likely make it to the other side of the storm unharmed. HODL is the golden principle of crypto investing, which we preach and likewise practice in our Bitcoin price predictions. Thus, we hold on to our $15,000 BTC price target as we tune out all the noise.