© Reuters
Investing.com – Yesterday the fell more than $1,000 in a matter of minutes in a panic reaction. This sharp decline was tied to a tweet from Fox Business reporter Eleanor Terrett.
She released a memo that Democrats are defending the US Securities and Exchange Commission’s position on digital assets. Party members reportedly received the memo before a hearing on digital asset regulation took place. This is why this document is perceived within the cryptographic community as an instruction for action.
In essence, this is following the advice of SEC Chairman Gary Gensler in treating almost all cryptocurrencies as securities. Furthermore, it aims to point out that the lack of clarity in the legislation, which the cryptocurrency industry complains about, is not due to the lack of proper regulation, but to the fact that the crypto industry -currencies violates current legislation.
As Democrats try to back Gensler and avoid a fundamental change in the law, the political opponent must be accused of not taking investor protection seriously.
The conclusion of the memo is that SEC Chairman Gensler is doing a great job and that prosecuting crypto criminals and protecting investors and consumers has never been better. This development deserves support from Democrats, as Republicans plan to curtail the powers of the SEC with brand new regulations.
If this is confirmed and the Democrats are successful in this approach, the outlook for cryptocurrencies is likely to darken further, at least in the United States.
Bitcoin price technical benchmarks
Bitcoin is currently losing -0.34% at a price of $27,533, while the weekly loss stands at -5.65%.
The cryptocurrency ended Monday with a daily closing price below the 23.6 percent Fibo retracement of $28,280. This opened the door for an extension of the downside move towards the 38.2 percent Fibo retracement of $26,619.
If one fails to defend the 38.2 percent Fibo retracement at the daily close, expect further losses towards the 50 percent Fibo retracement of $25,277.
Only with a sustained rise above the 23.6 percent Fibo retracement does the chance of a test of the $30,000 psychological mark increase. Beyond that, attention would then shift to the April 14 high, which sits at $30,964.