Bitcoin prices floated higher On Wednesday, she broke away from bearish calls when Christine Lagarde raised the need to regulate it on a global level.
In an interview with Reuters, the president of the European Central Bank said that Bitcoin is a highly speculative asset that has enabled “some objectionable activity”, such as money laundering, and added that “there must be regulation” to control its abuse on an international scale. .
“This has to be applied and agreed […] on a global level, because if there is an escape, that escape will be used, ”she added.
ECB President Christine Lagarde called for global regulation of #Bitcoinand said that in some cases the digital currency had been used for money laundering activities and that any loopholes in the law needed to be closed. To follow #ReutersNext updates here: https://t.co/4MgFy4jnw5 pic.twitter.com/qlBtoDuZLW
– Reuters (@Reuters) January 13, 2021
The statements came in the wake of Bitcoin’s sharp drop from its all-time high this week. The flagship cryptocurrency sold out for nearly $ 42,000 over the weekend due to profiteering and crashed by nearly 29 percent in later sessions. Before that, it was up nearly 100 percent in just three weeks of trading.
Bitcoin’s high volatility shocked Ms. Lagarde, who reiterated that the cryptocurrency may never become a currency. She called it “a very speculative asset,” infamous for having done “some funny business” during its 11-year existence.
Still a recovery
Nonetheless, Ms. Lagarde’s critical view of Bitcoin was not enough to shake up the upward sentiment during the day. The cryptocurrency rallied more than 3 percent to $ 35,954, less than an hour after the ECB chief’s comments hit the stride, breaking the choppy trend that clouded the European and Asian session on Wednesday.
Bitcoin breaks above its 20-day exponential moving average resistance wave. Source: BTCUSD on TradingView.com
The BTC / USD exchange rate broke above its 20-day exponential moving average (green), indicating that it wants to record a rebound to its 50-day simple moving average (blue), followed by a breakout to its all-time high of $ 42,000 .
Ancient fractals showed that Bitcoin maintaining 20-DMA as support is a bullish sign.
Tyler Winklevoss, the co-founder / CEO of US-based cryptocurrency exchange Gemini, hinted that investors were buying Bitcoin, not to speculate, but to break free from the ‘funny stuff’ being run by centralized exchanges in the name of endless money printing.
Bitcoin is a movement that is here to stay; it will never go away, ”he added, reiterating the cryptocurrency as one of the most important defensive assets against inflation and fiat depreciation.
Bitcoin long-term trend
More investors are looking to the prospect of additional government spending in the US, as promised by President-elect Joe Biden to help the US economy. Meanwhile, the Federal Reserve’s commitment to buy up government and corporate debt while interest rates remain close to zero through 2023 is moving investors further away from cash-based safe havens to riskier alternatives like Bitcoin.
“There are many institutional investors who have bought $ BTC at the 30-32k level, ”said Ki-Young Ju, the CEO of CyptoQuant. “Speculative gamble, but if these guys are behind this bull run, they’re protecting the 30k level. Even if we have a dip, it won’t fall below $ 28k. “