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Bitcoin (BTC) Likely to Upsurge Following This New Crypto Law

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VOC, Voice of Crypto, BTC

The CPI inflation data was revealed last week, and as expected, the price of bitcoin reacted accordingly.

The CPI, or the Core Consumer Index, is regarded as an effective indicator of inflation rates and has risen by 6.6% from what it was in 2021. This metric now sits at the highest it has been in four years.

According to analysts, the CPI value decreased from August until September. Despite this, the inflation rates were still faster than economists had predicted.

Following this report’s news, bitcoin’s price tumbled 3% to its lowest since late September, dragging most other cryptocurrencies down.

Overall, the US Federal Reserve has raised interest rates five times this year by about 300 basis points, to bring the inflation rate down to 2%. yet, they still have a long way to go.

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BTC, which has fallen so steeply in price this year, may have further down to go as its traders start to panic and sell their holdings over further FED-rate hikes in November when the Federal Open Market Committee meets next.

Bitcoin’s Price Action Following the CPI Inflation Data

Bitcoin has been trapped in a range for the last few months and is trading sideways. Volatility on the cryptocurrency’s price action doesn’t seem so strong either.

However, the point remains that the release of the CPI data has brought bitcoin ever closer to the $18,250 mark. This is especially disturbing because the market has begun to wonder how many more hits this support level can take before bitcoin breaks it to the downside.

Chart showing bitcoin’s price action on the 4-hour price chart 

Chart showing bitcoin’s price action on the 4-hour price chart | Source: Tradingview

As illustrated above, the bitcoin price is held down by the 50-period (yellow line) and the 100-period (red line) simple moving averages. Bitcoin is currently testing both as support and is being held down from moving beyond the $19,700 zone.

If the Bitcoin market is to see a breakout from these levels and, therefore, a breakout from its multi-month bearish channel (blue line), there must be a breakout backed by a considerably strong trading volume.

However, considering the general bearishness of the crypto market, a breakout is unlikely to happen. Looking at things realistically, bitcoin may get rejected at this level, causing a downtrend trend to new yearly lows.

 Kevin O’Leary on Bitcoin

Canadian businessman and TV personality Kevin O’Leary has his thoughts on the bitcoin public.

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According to O’Leary, bitcoin’s price is expected to go up when the Stablecoin Transparency Act passes. O’Leary believes this might happen late this year or early next year after the November mid-term elections.

Sharing his reasons for investors to go long on (or buy) bitcoin on the Youtube Channel CryptoBanter, O’Leary stated that crypto “cannot be stopped.”

In reality, the Stablecoin Transparency Act has nothing to do with bitcoin. It is merely a bill that restricts and regulates some of the activities of stablecoin issuers. However, O’Leary believes this might be the first step towards regulating cryptocurrencies in general and has stated that “if regulation comes, bitcoin goes up.”

O’Leary has repeatedly stated that he expects bitcoin to become the 12th sector of the S&P 500 Index and that regulation is the only way for the cryptocurrency to achieve this.

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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