Bitcoin’s stagnation trend continues as annual losses now stand at -22%
The past month has seen Bitcoin shed 12% of its value with no signs of a trend reversal in sight.
- Rising interest rates across the globe, especially in Europe and North America, seem to compound BTC's ongoing dormancy.
- The total combined cap of the crypto sector currently stands at AUD$2.6 trillion with BTC's market share lying at a solid 40%.
- New York senator Kevin Thomas has introduced a new bill seeking to heavily penalise individuals associated with crypto rug pull scams.
Bitcoin, the world's largest cryptocurrency by total market capitalisation, continues to struggle mightily. The flagship crypto is unable to break past the all-important AUD$55k resistance cleanly even though it has passed the mark multiple times over the last 7-day stretch. At press time, BTC is exhibiting weekly losses of -1.2% while trading at AUD$54,702.
The sluggishness comes amidst news of incumbent French president Emmanuel Macron winning his second consecutive term. However, many pundits believe that rival Marine Le Pen's growing clout within the nation may serve as a potential trigger for a bear market over the coming few months.
Ariane Hayate, fund manager for Edmond de Rothschild Asset Management, believes that if Le Pen continually musters more support across France, the impact on the global economic landscape could be devastating, adding: "The first impact would be on the French 10-year bond yield that could go through the roof."
The European Union (EU) has been facing a lot of opposition from some of its key member nations in recent years, resulting in inflation numbers running high even though central bank balance sheet reductions in the region have not yet truly kicked in. If more separatist-ideology-aligned individuals such as Marine Le Pen are able to garner mainstream power in the near term, the EU's economic stability could crumble further. This could have a massive impact on markets across the board, including cryptocurrencies.
Legislation to criminalise rug pulls proposed by NY senator
New York State senator Kevin Thomas has introduced a new draft bill that seeks to penalise offenses related to crypto rug pulls and virtual token distribution frauds. If passed, developers or projects found to be duping unsuspecting investors will be prosecuted and liable to some serious legal action.
As the legislative framework surrounding the crypto market continues to tighten, it stands to have a positive impact on the market, potentially spurring the prices of key assets (including Bitcoin) up in the near-to-mid term.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.