Bitcoin has been sluggish for weeks and trapped between $30000-$40000. But what we should keep in mind is that volatility is the intrinsic feature of the cryptocurrency market. Though it is changeable, we still can take a peek at the price trajectory from some signals.
Bad News
Regulatory crackdown
In April 2021, a big, yet bad news that Chinese governments regulatorily ban crypto mining dragged Bitcoin price down from its peak at $65000. However, it is unexpected that China’s action continues to invite followers globally.
Lately, South Korea was reported to issue intensified regulations on cryptocurrencies exchange. China cracked down on cryptocurrencies under the banner of protecting its environment, while South Korea suppressed them in the name of tackling tax fraud. “We will do our utmost to protect law-abiding taxpayers and fulfill our fair taxation mandate by probing and tracing assets that tax dodgers may be concealing in the midst of the recent cryptocurrency trading fervor,” said Kim Ji-ye, director-general at the Gyeonggi Province Fairness Bureau.
The same will go for the US. The Federal Bureau of Investigation (FBI) has warned cryptocurrency that new rules are going to be issued within this year. Federal Reserve Chairman Jerome Powell said in a virtual hearing that “We have a tradition in this country where the public’s money is held in what is supposed to be a very safe asset. We have a pretty strong regulatory framework for bank deposits for…
