Bitcoin has arguably had its consolidation period now, and in the political sphere as well as the financial sphere the tide looks to be turning in bitcoin’s favour. With all the stars aligning for bitcoin, are we approaching the start of the next big price surge to the upside?
The anti-crypto tide is turning
The political landscape for bitcoin is finally turning favourable. Sworn enemies of the freedom currency, in chairman of the Security and Exchange Commission, Gary Gensler, and his ‘handler’ Senator Elizabeth Warren, are now facing a rising tide of opposition from both sides of the house, who appear to be becoming educated on the innovation that is crypto.
For years it was so easy to just pass misinformation around the House and the Senate along the lines that bitcoin was a fraud and a scam, and that the only people that used it were drug smugglers, terrorists and the like.
Crypto wasn’t a political hot potato, and it was far more comfortable, especially for the elder congressmen/women and senators, embedded in the traditional finance system all their lives, to go along with the anti-crypto narrative that was sown among them.
Biden administration changing tack?
However, this is all beginning to change. The FIT21 bill, which takes power away from the SEC, was passed on Wednesday with a huge majority. Not only that, but President Biden, who had threatened to veto the bill, abruptly changed his mind, signalling a wind of change in the administration, perhaps as it finally realised that it was following an anti-crypto path that was going to lose a lot of voters coming into the elections later this year.
High net worth investors get first shot at Bitcoin ETP in UK
Meanwhile, in London, the first Bitcoin Exchange Traded Product (ETP) has been given the go-ahead for trading by the UK financial watchdog, the FCA. This ETP is likely to begin trading at the end of May. However, true to the UK government’s policy of preventing the average retail investor from dealing in crypto, the Bitcoin ETP will only be available to high net worth investors.
8 straight days of Bitcoin ETF net inflows
While the tide for bitcoin may be turning politically, from a financial perspective things also appear to be continuing in a positive vein. The US Bitcoin ETFs saw an eighth straight day of net inflows. A smaller net inflow of 2,019 BTC was taken out of circulation - more than 4 times the daily mining issuance.
Short term price action bullish for $BTC
Source: Coingecko/TradingView
While from a macro perspective, the price of $BTC is looking very favourable, also on the much shorter time frame of the hourly, things are starting to heat up. A small bull pennant is forming, and it looks like the $BTC price is being squeezed by the support and the top of the pennant. A break to the upside is more likely than not, and the measured move of the flagpole would take $BTC back to its all-time high, should it play out.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
