U.S. Regulators Actually Boost The Crypto Market For Once 📈
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On today's show:
Don’t look now but the storm may be clearing after Bitcoin bounced off $6,000 and the US Senate hearing on virtual currencies went rather well.
Story - US Senate Hearing
Yesterday the US Senate Committee on Banking conducting a hearing on Virtual currencies.
It last about 2 hours and the livestream is archived on the senate website link that I gave out yesterday and will include in the show notes for today:
https://www.banking.senate.gov/public/index.cfm/2018/2/virtual-currencies-the-oversight-role-of-the-u-s-securities-and-exchange-commission-and-the-u-s-commodity-futures-trading-commission
The general consensus in the crypto community, especially if you look on Reddit, is the hearing was very positive and we seem to have somewhat of a new friend in the form of Christopher Giancarlo who is the chair of the US Commodity Futures Trading Commission.
He opens 32 minutes and 40 seconds into the recording with a personal story about how his college age kids were unresponsive when he and his wife set each of them up with a brokerage account and encouraged them to get into the stock market.
He goes on to say that when his kids discovered Bitcoin, their level of enthusiasm went up significantly.
The key quote that has now been turned into a meme is when he says “It strikes me that we owe it to this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response not a dismissive one..”
When he says “We owe it” to me that’s a subtle recognition of the fundamentally different economic environment that exists now vs pre-2008 financial crisis.
The investment banks get the blame for causing that crisis, but really it started with the government forcing the banks to lend to people who had poor credit and where therefore high risk.
But anyway, as I watch this fellow, he seems like a balanced guy, rather than a stereotypical government regulator on a power trip.
https://www.coinigy.com/main/markets/BITF/BTC/USD
Like we always say there is no real way to know EXACTLY why the markets move in a certain way, however, the two forces that coincided yesterday were the relatively positive hearing results and the fact that Bitcoin bounced off of $6k and has been rising ever since.
It actually hit $6k at 7am London time yesterday and I had the hourly chart open for most of the day as it gradually rose up to where it is now above the 50 hour moving average.
This is where the blue average line on the volume chart is useful because it makes it easier to see how the volume picks up the closer the price got to $6k.
That seems to have been enough to kickstart somewhat of a recovery.
However… just like we see during an uptrend, the price pulls back to the trendline, the same thing applies in a downtrend.
I want to see a break up at least past $8,300 because that is when the bottom really fell out of the market on the way down.
So if we get back above that and hold, then we get back up above the 200 hour moving average we’ll be in good shape.
Then it’s just a case of breaking the round numbers, $10k and so on. Each time confirming the strength of the recovery.
I am now just an observer in this. I published the details of when I made my move and what coins I bought and I’m still holding those positions.
https://steemit.com/bitcoin/@marketingmonk/the-8-cryptos-i-bought-in-the-crash-when-and-why
If you missed the article I published called
The 8 Cryptos I Bought In The Crash, When and Why
You can catch it on my Steemit account.
It’s Wednesday which means I have to make sure I create a new lesson for my trading course today, so I’m going to leave it there.
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I loved the conclusion:
"We are entering a digital era in world financial markets. As we saw with the development of the internet, we cannot put the technology genie back in the bottle. Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes and engaging economic activity. Ignoring these developments will not make them go away, nor it is a responsable regulatory response. The evolution of these assets, their volatility, and the interest they attract from a rising global millennial population demand serious examination."
Chairman Giancarlo recognized we are entering a revolution in the financial system, couldn't be happier.
My sentiments exactly. As a US citizen, I have felt a little isolated from the full extent of the revolution because of the sense of FUD and the uncertainty of the US government position. It still is seen that ICO's will be difficult for US citizens to participate in, but at least the whole of the cryptocurrency/blockchain concept is embraced by the US government. It is so reassuring. I wonder if they realize that we are not even allowed to participate in ICO's for the most part. Maybe that is why no ICO has registered. If US citizens are not allowed to participate, why should they?
Always find your shows informative. Your trading advice today was right on.
When an asset (such as bitcoin) is oversold, any positive news (even only a slightly positive one) will make he asset price move up. This is because in an oversold situation, the asset price is getting ready to snap back towards mean reversion.
I am happy that bitcoin is finally moving up. I am a little upset, though, that I couldn't hold on to all of my coins. I sold 5% of then near the bottom :( Looks like I will have to repurchase them soon.
More positive then negative always a positive thing :)
Started on Dtube today. Liking this platform as a way to give a little extra support to people I subscribe to. So far so good! Chris Coney as always is almost superhuman with his flawless delivery of content. Thanks again for keeping it real Chris!
I'm hopping the rise while stay :)
Thanks for your work Chris as always. I watched the stream live when it started I couldn't be more exicted about it. In overall, it was really positive news. It came to the rescue after all this FUDing that we have been suffering for. There are many more good news out there though this one really adds up. I'm so bullish these days.
Thanks for the update
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There was a feeling of "this is not going back" in the air.
That speech by Chris. Giancarlo - the senate committee Chairman - is a pointer to an imminent balance and proper regulations that will instill confidence of institutional investors to buy into crypto currencies.