Cryptic ball: good to know.
Yesterday's Congressional hearing went quite well. Curiously, even those who should be expecting such a positive outcome were particularly impressed - even "shocked" - with the level of knowledge and tone of engagement. This has been attributed to the industry's lobbying efforts in Washington and to the quality of the testimonies - with Sam Bankman-Fried's being particularly interesting.
But it's also natural that as this market matures, so does the understanding regulators have of it. After all, Bitcoin's whitepaper was published in 2008 and its blockchain launched on the third day of 2009. Initially, the world was taken by the cryptoasset storm, which flooded the imagination of people in every continent. Now, as the water level rose, there are few who aren't actively trying to navigate it.
Meanwhile, prices continue to fall since Monday's top, but bitcoin seems to be trying to bounce at $48k. If this plays out, refer to yesterday's higher low scenario. If not, expect BTC to continue the slow bleed explained Tuesday - which could drag down the rest of the market as traders will fear the $42k support won't hold. I disagree - although I believe such test of $42k is very likely this weekend. I just believe it would provide the perfect opportunity to trap the bears who opened short positions later than they should. But, as always, you should have a plan.
Chart art: ready to deploy.
Three things: I read you.
- CMS Intern's notes are legendary. Check his take on the hearing.
- Chainalysis' reports are visual. Check "The 2021 NFT market explained".
- Visas's reports can be great. Check "The Crypto Phenomenon: consumer attitudes & usage".