Cryptocurrency Market Review May 2023. Relevant Regulatory Issue
Here we go. Cryptocurrency will be regulated. The US SEC finally made a decision and conducted the Howey Test. And what happened? Well, Bitcoin didn’t pass! Because it’s considered a ‘commodity.’ However, most other cryptocurrencies passed the test and will be regulated by government institutions.
And here’s what’s most interesting. If cryptocurrencies fall under SEC jurisdiction, they cannot:
- be used as a means of payment because that’s another jurisdiction;
- be considered commodities because that’s another jurisdiction.
- But they become securities.
The Chairman of the CFTC, Rostin Behnam, said that Ethereum is a commodity, not a security, and should be regulated by his office. It is a very interesting situation where institutions have already confused who should regulate whom. Whether it is good or bad, we cannot know yet. The only good thing is that finally, the issue of regulating the cryptocurrency market has moved from a dead point.
But we still have a long way to go. Because we need to solve the issue of the DeFi market. It is also unclear how it will be with CBDC regulation, although in this case, it is obvious that it falls under the jurisdiction of the central bank, but a separate law will be needed.
Meanwhile, the leader of Ripple company intends to relocate the company’s operations to another country because, according to him, US institutions are engaged in repressive policies instead of regulation. Of course, he prefers to see it that way. But let’s not forget that all countries want to engage in cryptocurrency regulation.
Prices
When the price of Bitcoin reaches $40,000, as Anthony Scaramucci recently promised? Anything is possible. It is highly likely. Let’s take a look: from the beginning of November last year to the beginning of this year, the price of Bitcoin jumped from the Fibonacci 0.786 support level and rose to the next support level – the Fibonacci 0.618. This corresponds to a price level of $26,342.
It seems that the market has already created conditions for the price to continue rising. The $40,000 price range is not far off. We even have a buying signal. Buy long at $28,746.
In the NEOUSD price chart, we possibly see a strong beginning of a bull market. However, let’s not rush to buy now because the last candlestick is The Shooting Star. After some time, new buying/filling signals may appear.
In the XRPUSD position, there is a buying signal at 0.49512:
In the XTZUSD position, there is a buying signal at 0.94097:
Thank you for reading and commenting!