On Tuesday (June 11), Bitcoin fell back after breaking through $70,000, taking a breath at $69,400. Republican presidential candidate Donald Trump promised to become the crypto president and double support for the cryptocurrency circle to rescue Bitcoin from last week's non-agricultural crash. Experts say that as crypto regulation becomes more transparent, it may open the door to Wall Street's $20 trillion financial consulting industry.
The global cryptocurrency market suffered a major crash before the weekend due to a massive sell-off triggered by the release of disappointing US non-farm payrolls data last week. During this crash, the total market value of the global cryptocurrency industry evaporated by more than $123 billion, and the price of Bitcoin also quickly fell 5% from its weekly high of $71,933, and then found support in the $68,490 area.
While the rest of the cryptocurrency market grappled with the aftermath of Friday’s crash, Bitcoin began to show signs of recovery over the weekend, surging to a daily peak of $70,168 on Monday despite a tense macroeconomic environment.
Bitcoin’s slight recovery on Monday was attributed to Trump reaffirming his support for the cryptocurrency industry at a campaign fundraiser late Friday.
He raised $12 million from tech venture capitalists David Sacks and Chamath Palihapitiya at a fundraiser in San Francisco.
“He said he was going to be the crypto president,” said Trevor Traina, a San Francisco tech executive and former Trump ambassador to Austria.
Additionally, Republican National Committeewoman Harmeet Dhillon said Trump also praised cryptocurrency as an important area of his support.
As news of the event trickled out to media outlets over the weekend, it appeared to bolster investor confidence in Bitcoin’s long-term prospects.
“Trump made it clear that the Biden-Gensler offensive against cryptocurrencies would stop within an hour of the second Trump administration taking office,” said Jacob Helberg, an adviser to data analytics provider Palantir, referring to SEC Chairman Gary Gensler.
Trump also reiterated his support for cryptocurrencies and his plans to promote the industry, and emphasized that Democrats intend to take the opposite approach and impose tough regulations.
However, some experts believe a crypto shift is taking place in Washington. Bitwise Chief Investment Officer Matt Hougan believes the U.S. is finally moving toward regulatory transparency, which could open the door to the country’s $20 trillion financial advisory industry.
Meanwhile, the industry isn’t just waiting for things to change. Coinbase, the largest U.S. crypto exchange, donated $25 million to Fairshake, a cryptocurrency-focused super PAC, to step up lobbying ahead of the U.S. election in November.
The latest donation brings the total raised by the PAC and its affiliates this election cycle to $160 million, an amount comparable to recent contributions from Ripple and venture capital firm Andreessen Horowitz.
In addition to the United States, the UAE Central Bank’s board of directors approved the launch of a new system to supervise and license stablecoins. The plan aims to promote digital transactions, boost the country’s digital economy and promote innovation.
Local lawyers said the regulation clarifies the issuance, licensing and regulation of dirham-backed payment tokens. Payment tokens must be backed by the UAE dirham and cannot be pegged to other currencies, digital assets or algorithms.
In February this year, the Central Bank of the United Arab Emirates announced that it would issue a central bank digital currency (CBDC), which aims to solve the problem of inefficiency in cross-border payments and promote domestic payment innovation.
Bitcoin Technical Analysis
Ibrahim Ajibade, an analyst at FXEmpire, said that after Trump's latest comforting remarks, the price of Bitcoin soared to more than $70,000, up 2% from the weekly low set last Friday. However, in the absence of obvious bullish demand catalysts, it seems unlikely that the price of Bitcoin will break through the all-time high of more than $72,000 in the short term.
The historical accumulation trend depicted on the IntoTheBlock chart suggests that Bitcoin price is now facing major resistance at $70,460.
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