How the Markets Reacted to the US Inauguration
Major Altcoins followed in Bitcoin’s footsteps, Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) are down by 6.56%, 7.48%, and 6.40% respectively in the last 24 hours.
Joe Biden, sworn in as the 46th President of the United States on January 20, has already offered a $1.9 trillion aid package to help people, boost vaccination efforts, and provide funds to state and local governments.
Some in the Bitcoin and cryptocurrency community see Gensler’s appointment as a sign that the Biden administration may bring other crypto-friendly individuals aboard. Perhaps the most direct way the Biden administration can influence Bitcoin is through various laws and regulations. This is appropriate for three reasons:
*The US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Office of the Comptroller of the Currency (OCC) will see a change of leadership. So will the Federal Reserve next year.
*The SEC is suing Ripple Labs and two executives for selling XRP in the form of unregistered securities, with implications for companies that did not conduct IPOs.
*The Financial Crimes Enforcement Network (FinCEN) is reviewing a set of rules that subject cryptocurrency transactions to more scrutiny.
Analysts however are quite speculative on what this may imply for Bitcoin price, Jesse Cohen, Senior Analyst at Investing.com, believes Biden’s presidency could hurt the value of cryptocurrency. Stating recently:
“While many expect the Bitcoin rally to continue in 2021, I’m more concerned with what the Biden administration could mean for cryptos, I expect Bitcoin to remain highly volatile to the downside in the new year, given the potential for more scrutiny and tighter regulation”
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