đ 3 reasons why $65K marks the bottom for Bitcoin
Despite testing the $65,000 support on June 14, Bitcoin hasn't closed below $66,000 since May 17. While BTC was unable to break above the $72,000 resistance during this four-week period, some events have improved regulatory sentiment and highlighted how little room the U.S. central bank has left to maneuver without triggering inflation. Favorable market conditions and resilience in Bitcoin derivatives metrics indicate that the downside is extremely limited.
đ¸ Washington is slowly turning more favorable to crypto
On May 16, U.S. lawmakers passed a Congressional Review Act to explore a Securities and Exchange Commission (SEC) rule that requires listed companies, including banks, to record crypto assets as both assets and liabilities on the balance sheet. According to Senator Cynthia Lummis, this vote was a milestone as it was the first âstandalone crypto legislationâ passed by Congress.
The resolution was eventually vetoed by President Joe Biden, but the defiance from Democrats demonstrates the âgrowing numberâ and ârising influence of crypto participants" in U.S. politics, according to Craig Warmke, a Bitcoin Policy Institute fellow. While Bidenâs veto presents a challenge, both chambers of Congress would need a two-thirds majority to overrule it.
The banking sector has an economic incentive to offer custody services for cryptocurrencies, as banks also want their share of the ongoing crypto adoption. Daniel McCabe, chief compliance officer of Flexa, believes that âpro-crypto lobbies and the banking industry could absolutely have an effect.â
Perianne Boring, founder and CEO of the blockchain trade association Digital Chamber, described the Democratsâ support as a âwatershed moment" for the Biden administration. Boring claimed that Schumerâs support is turning tides favorably for crypto in Washington. Essentially, Biden will have to assess if itâs worth vetoing the H.J.Res. 109 as it could risk opening an inner conflict in the Democratic party.
