The torments of the global crypto market seem never-ending as the business has fallen prey to fear yet again. Netizens have been contemplating the recent pull-back to be repercussions of an incoming crypto executive order. The needle from fear and greed index has been flooring down towards fear. With the current score at “30” from the previous day’s “52”.
Successively, the market has taken a dip in market cap by 5.8% over the previous day at $1.94 Trillion. While Bitcoin at the time of press trades at $40,781.31, Ethereum has been changing hands at $2904.61. With the crypto executive order expected to be around the coming week. Folks from the business are keen on the implications of the order.
Is This What To Expect From The Crypto Executive Order?
An order from The White House is likely to arrive by next week, which could direct respective government entities. To study various aspects of the industry with a vision of formulating a regulatory structure. The government divisions would examine the potential of CBDCs, financial stability issues from the influx of crypto assets. The entities would examine the impact of digital assets.
Alongside the study of privacy concerns of the industry and the measure to contradict the risks involved in the business. Proponents are expecting an order to explore more around CBDCs. The Federal Reserve’s interests around CBDCs and the connection with Ripple’s ODL are widely known. This heats up the discussion around the near implementation of CBDCs.
Successively, as the administration views the sector as prone to illicit activities. The authorities could form a body that would monitor cybercrimes around the crypto space. Cryptocurrencies have been making a presence in executive orders in past. As previous authorities have placed bans on transactions of digital currencies and formed task forces to counter illicit activities. Folks have been in a dilemma over the enactments.
Will The Executive Order Chain The Market With The Bears?
As previously discussed, folks have been in a dilemma over the possible enactments and are skittish around the future of space. Wherefore, savvies have been holding vivid opinions around the crypto executive order. While some pin a bullish outlook, others are fearing the bears. The order could call in the bears for the short-term owing to the lack of clarity. Which would, however, fade for the call of the bulls.
The U.S government could possibly be bullish as a number of countries have been taking up initiatives. For instance, Russia’s initiative with crypto mining, UAE’s move to issue federal licenses for virtual asset service providers. Ukrainian parliament voting in favor of a bill granting legal status to crypto. However, sections have been pondering over the events in the neighboring country.
In conclusion, the regulatory certainty and investor protection could give the much-needed approval for legitimacy. Which non-crypto investors and institutions have been seeking for. An enactment would fuel the prospects of legit protocols, whilst a number of no-utility tokens will part ways. The broader implications will infuse institutional money at a greater scale.
While a short-term dip could be on-the cards owing to the lack of clarity, taxation, and regulation policies. The industry will eventually gather the monetary numbers for propulsion to the highs wherein the star crypto Bitcoin could be fueled for a trek to highs of $250,000 by the end of the year. That would also persuade alts for a bigger leap on the charts.