The globe watched as Bitcoin saw a minor downturn by approximately 0.50% this Wednesday, steadying at a trading price of $27,412, contradicting its robust trend of nearly 4% escalate spanning a week. Shadowing this lies recent adversities faced by the cryptocurrency sphere, such as the US Treasury moving to outlaw cryptocurrency wallets, ignited by law enforcement’s pursuit of controlling substances like fentanyl. Plus, adding to the chorus of challenges, entrepreneur Kevin O’Leary points to the biting regulatory barriers in the US, insinuating that these hurdles are guiding crypto innovation on a path away from American shores.
In an initiative to fight against fentanyl distribution, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has exercised sanctions on cryptocurrency wallets allegedly linked to individuals and entities associated with the production of fentanyl, a potent synthetic opioid. Alongside, the US Justice Department released indictments against China-based chemical manufacturers suspected of exploiting the cloak of cryptocurrencies to facilitate illegal fentanyl precursor distribution.
Given this announcement, sentiments sway towards apprehension around the repercussions on BTC prices, underscoring regulatory worries, and the potential use of cryptocurrencies for illegal activities that could dampen investor sentiment.
On the other end of the spectrum, Kevin O’Leary recently expressed his distress concerning the probable negative impact of stringent regulatory barriers in the US on cryptocurrency innovation. Post a congressional hearing, wherein the Chairman of the SEC, Gary Gensler faced questioning about crypto regulations, O’Leary professed lawmakers’ discontent towards Gensler for letting innovation slip away. Bringing into focus the SEC’s enforcement actions against prime US-based crypto exchanges and citing the collapse of FTX as an instance, O’Leary pointed to the rise of a new exchange in Abu Dhabi, M2, forecast to supplant FTX and Binance.
Future implications on BTC prices due to suppressed innovation and regulatory hurdles in the US could wield an adverse effect on investor sentiment.
Consulting a 4-hour chart for Bitcoin price prediction exposes a pivot point at $27,385, resistances at $28,788 and $29,576, and support at $26,629, and $25,226. The Relative Strength Index (RSI) shows a neutral posture at 50.29. Nevertheless, if the 50-Day Exponential Moving Average (50 EMA) dipping below $27,188 may trigger selling. Consequently, though Bitcoin appears bullish above $27,150, anything under that may suggest bearish tendencies.
Staying vigilantly informed on the rapidly evolving landscape of digital assets, and mindful of the inherent volatility and risks, is critical for informed crypto investments. With this, we bring you our carefully curated ensemble of the best 15 alternative cryptocurrencies and ICO projects to keep a close eye on in 2023.
Source: Cryptonews
