President Joe Biden’s Executive Order, the coming CBDC digital dollar, FBI Task Force, plus our weekly BTC and ETH analysis
- Biden Expected to Issue Executive Order on Crypto and CBDC’s
- FBI Crypto Task Force
- Bitcoin/USD – Resistance Resisted
- Ethereum/USD – Lost Weekly Support
Biden Expected to Issue Executive Order
The White House will issue an executive order soon that will direct government agencies to study different areas of the digital asset space with the goal of creating a regulatory framework.
There are rumors that the executive order could arrive as soon as this week. The executive order will direct a wide range of government agencies to study crypto and central bank digital currency (CBDC) to produce a strategy to regulate these assets.
Watch: The Road To The Digital Dollar – The O Show
Under this order, The Financial Stability Oversight Council would study financial stability issues from the introduction of several cryptocurrencies. The SEC, Federal Reserve, and FDIC will consider ways to protect the markets and will report to the president on methods to mitigate risks pertaining to the buying and selling of cryptocurrencies. The Consumer Financial Protection Bureau and the FTC (Federal Trade Commission) would review privacy concerns pertaining to the buying and selling of cryptocurrencies.
FBI Crypto Task Force
The FBI is ramping up its enforcement efforts as well and is now touting a dedicated division to investigate blockchain based crimes called the National Cryptocurrency Enforcement Team (NCET).
NCET is already calling out crypto companies to help or be held accountable.
“We also call on all companies dealing with cryptocurrency – we need you to root out cryptocurrency abuses. To those who do not, we will hold you accountable where we can.” -Deputy Attorney General Lisa Monaco
Monaco also announced the creation of a new international virtual currency initiative.
Many industry participants and researchers fear this will be another mass surveillance operation as federal agencies have already been watching the blockchain for years.
“Basically, big brother is watching your Bitcoin. Only the technically savvy will enjoy privacy. Welcome to the dystopian future.” -Hotep Jesus, Men of Order
Most agree catching bad actors is a good thing. However, our neighbors to the north have brought a new question to the forefront… what constitutes abuse?
With the Canadian government freezing bank accounts and seizing crypto assets of protestors with no due process, Jesse Powell, the CEO of Kraken Exchange, tweeted a warning:
“100% yes it has/will happen and 100% yes, we will be forced to comply. If you’re worried about it, don’t keep your funds with any centralized/regulated custodian. We cannot protect you. Get your coins/cash out and only trade p2p [peer-to-peer].” -Jesse Powell
Watch: Biden Executive Order & FBI Crypto Unit – The O Show
BTC Daily Chart
BTC Weekly Chart
At this very moment, Bitcoin is priced at approximately $37.7k and has dropped below the $38k – $41k support that we mentioned last week. While price did manage to stay over the $41k area and gave multiple daily closes over the level, the $46k resistance proved to be too strong and ultimately rejected prices down to sub $41k prices. I am personally expecting lower prices in the next one – two weeks but will wait for either a reclaim of the $41k level or a liquidation candle to the downside to look for buys.
Bitcoin Bull Scenario
Bitcoin breaks $41k resistance and we look at the $46k area as the next area of resistance.
Bitcoin Bear Scenario
Bitcoin does not reclaim the resistance level of $41k and I would expect for the $35k – $30k high time frame area to function as support again.
ETH Daily Chart
ETH Weekly Chart
Ethereum is currently priced at about $2.6k and has also lost its weekly support level in the same way that Bitcoin did. Unless this weekly candle for Ethereum is a fake out/deviation candle, I would expect lower prices for Ethereum in the next one – two weeks. I personally believe that Ethereum is at the mercy of Bitcoin, and it will only follow the direction that BTC takes it. For now, we will have to wait patiently to see how ETH reacts to BTC’s price action.
Ethereum Bull Scenario
Ethereum reclaims the $2.7k level on the weekly time frame and then pushes up to the $3k area.
Ethereum Bear Scenario
Ethereum loses the $2.7k level and I believe that we visit the $2k – $2.3k level.