Bitcoin, the leading cryptocurrency, is encountering obstacles in overcoming the crucial resistance level at $27,500. Despite recent bullish momentum, its upward movement has been limited due to the persistent downward trendline. Market sentiment remains wary as traders keep an eye on Bitcoin’s progress, waiting for a decisive leap or potential retracement. The next price fluctuations will likely depend on Bitcoin’s ability to tackle these obstacles and establish a new direction.
In another significant development, on Wednesday, Tether, the organization responsible for USDT, the largest stablecoin by total market cap, announced its plan to purchase Bitcoin as part of its reserve backing strategy. By incorporating the leading cryptocurrency into its balance sheet, Tether aligns itself with other prominent entities diversifying their holdings. The primary goal behind Tether’s upcoming acquisition of Bitcoin is to diversify its reserve holdings that back the USDT token, ensuring the company maintains the 1-to-1 peg of USDT to the US dollar. Tether intends to allocate approximately $222 million, representing 15% of its net profit, for this purchase. The CTO of Tether, Paolo Ardoino, stated that the decision to invest in Bitcoin was made considering its strength and potential as an investment.
The recent news of Tether’s substantial acquisition of Bitcoin to back its USDT has bolstered Bitcoin and contributed to its positive momentum on Thursday.
Simultaneously, politicians in Korea are uniting in support of crypto regulations in response to a high-profile murder case believed to be connected to cryptocurrency-related losses. The event follows a series of scandals involving digital assets, such as Do Kwon’s Terra Money ecosystem collapse in May of 2021. Consequently, reports suggest that pressure on the Korean government to pass the nation’s first independent cryptocurrency law is intensifying, which could receive parliamentary approval later this month. The proposed legislation would introduce stricter regulations regarding reserve funds, account maintenance, and digital asset companies’ requirement to purchase insurance to guard against attacks. These regulations would apply to digital currencies like Bitcoin, while government-designated securities would remain under existing capital markets legislation.
In another instance, Aisha Ghaus Pasha, the Minister of State for Finance and Revenue in Pakistan, announced the enforcement of a ban on cryptocurrency services in the country, with no intention to legalize cryptocurrency trading. This decision is due to the requirement from the Financial Action Task Force (FATF) which had previously placed Pakistan on its “grey list” for inadequate anti-money laundering and counter-terrorist financing measures. The prohibition of cryptocurrencies is one of the FATF conditions for Pakistan’s removal from the list. The stringent stance on cryptocurrencies in Pakistan has added pressure to the market and limited gains for major cryptocurrencies.
Currently, Bitcoin is trading at $27,290, experiencing a slight increase on Thursday. Bitcoin confronts challenges in reclaiming its $30,000 level from the previous month, hovering around $27,000. At this time, Bitcoin faces significant resistance around the
Source: Cryptonews
