Bitcoin price today has dropped back to the top of the range it has largely defined so far in 2022.
Bitcoin price today fell back to the top of a largely defined range so far in 2022, after meeting key technical level resistance and amid some potential regulatory concerns. power. The largest cryptocurrency has largely offset losses after falling as much as 3.3% on Friday to $44,252 and is still trending down for the fourth straight day after a run towards the 200-day moving average. at the beginning of the week.
“Bitcoin and other digital assets fell overnight due to a combination of factors,” said Hayden Hughes, chief executive officer of social trading platform Alpha Impact. “Technically, the markets are entering overbought territory and even during extended rallies, we expect a rebound in the process.”
Hughes and Edul Patel, chief executive officer and co-founder of digital asset trading platform Mudrex, also cited a plan backed on Thursday by a panel of the European Parliament, in which Cryptocurrency transactions will be subject to EU rules that require financial transfers to carry information on the identity of the payer and payee.
“While this does not prohibit interactions with non-storage wallets like Metamask, it does introduce significant conflict for users,” Hughes said.
Market dynamics can also be an issue, according to JPMorgan Chase & Co., which views stablecoins’ share of crypto market value as an indicator of a potential rise or fall. Assets are tokens that are typically pegged to traditional currencies like the dollar.
“The share of stablecoins in total crypto market capitalization does not appear to be excessive and as a result we believe any further upside to the crypto market from here will likely be limited.” more,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note. “The ratio is currently below 7%, which brings it back to the trend since 2020.”
Another factor that made waves in crypto is an interview with US Senator Elizabeth Warren, a prominent critic of the crypto industry, on NBC News Now’s “Meet the Press Reports” . She supported further efforts to create a US central bank digital currency and compared the crypto market to past asset bubbles.
“The entire digital world has functioned very much like a functioning bubble,” says Warren. “And that is it continues to rise based on what? Based on additional production? Is not. Based on the fact that it has proven that it has solved all these other problems and that it is now being used exponentially in areas where it has not been used before? Not really. ”
“It’s emotional when people say to each other that it’s going to be great,” Warren said.
