Bitcoin has ignored statements from Goldman Sachs CEO David Solomon that the cryptocurrency market will face a "big evolution" in how it is regulated. In an interview with CNBC, the head of the bank confirmed that the company is showing a fairly strong interest in cryptocurrency and is determined in this direction, well, additional approvals with the regulator are needed. Let me remind you that last week, Goldman Sachs Group Inc. said they are close to implementing their proposal to provide access to trade bitcoin and other digital assets. So far, we are talking about clients from the private sector with fairly large accounts. By the way, other financial corporations also plan to provide rich clients with access to cryptocurrency trading.
According to Solomon, "severe regulatory requirements" from regulatory agencies currently prevent Goldman Sachs from transacting cryptocurrencies. There has been endless talk about Bitcoin regulation in recent years, but no concrete action has yet been reached. Back in January of this year, European Central Bank President Christine Lagarde called for regulation of the world's largest cryptocurrency, but that was the end of it.
Warnings at the end of last year by JPMorgan CEO Jamie Dimon that the United States could regulate the cryptocurrency market if bitcoin's market cap grows have also not yet been confirmed. At the time of Dimon's announcements, Bitcoin's market capitalization was around $ 330 billion and has now more than tripled to $1.07 trillion.
Cryptocurrency Could Disrupt America
The version that bitcoin can harm the United States was voiced today during an interview with crypto enthusiast and founder of PayPal, Peter Thiel. Although he is a supporter of cryptocurrency and believes in the long-term prospects of bitcoin, in his opinion, cryptocurrency carries significant risks for America. Thiel urged the US government to consider stricter rules for regulating cryptocurrencies, as he believes that at this stage, bitcoin can be partially seen as a financial weapon of China against the US. "China wants to weaken the dollar because it gives the US a lot of control. If China seeks to rein in bitcoin and other digital assets, perhaps the US should be asking harder questions about how it actually works," the investor added.
Bitcoin reacts to all this rather weakly after another unsuccessful attempt to get to its historical highs. At the moment, a large resistance can be seen in the region of $59,500 and it has not been possible to get out of this level in any way. Only a real breakout of this range will lead to new local highs in the region of $63,000 and $65,000. According to the latest forecast by Bloomberg, the bitcoin rate this year could reach $80,000. As long as the buyers are actively defending the support of $55,440, and it depends on this level - whether the bitcoin falls to a minimum of $51,900, or remains trading within this trading range. A breakout of $55,400 will lead to an active fall in the cryptocurrency, as there is emptiness below this range.
XRP succeeded
Ripple confidently overcame the $1 mark and only after that corrected slightly. Over the past few days, the altcoin price has risen by 73.3%. The cryptocurrency has long held a solid third place after Bitcoin and Ether but began to lose ground after the SEC filed a lawsuit against Ripple, which led to the collapse of XRP late last year. Ripple violated securities laws by not registering the sale of 14.6 billion XRP tokens, according to the commission, noting that $1.38 billion was raised solely to enrich Brad Garlinghouse and Christian Larsen. The lawsuit alleges that both men personally earned $600 million. Whether it is now fair to say that, against the background of such large growth, one can confidently say that the problems with the SEC have been resolved - I very much doubt it. XRP has once again overtaken Cardano and Polkadot, coming in fourth with a market cap of $44 billion. Matthew Solomon - CEO of Ripple and Brad Garlinghouse said they had access to documents that show the commission's views on crypto assets. In this regard, Ripple now needs to prove that their token is of the same value as bitcoin and ether, and if the SEC agrees with this, the dispute will be resolved.
Of course, all this is good, but how they are going to do it - it was not said. Once a lawsuit was filed with the SEC, it means that they clearly think differently. In this light, the artificial growth of the ripple now looks more like the possibility of large investors leaving the market before its last fall and depreciation as an asset. The best solution now for trading ripples is short positions, since at any time official comments from the SEC can be given on this matter, which will quickly bring "ripple lovers" back to earth. As we can see, only the tough 0.8600 mark keeps the altcoin from quickly returning to the 0.6300 area.
Let me remind you that recently Ripple Labs Inc. said it plans to acquire a 40% stake in Asian cross-border payments specialist Tranglo. Ripple said in a statement that the merger will help meet the demand for the XRP affiliate token used in transactions. In its already beloved style, Ripple has announced that it is entering new markets in the region to meet the demand for cheaper, faster, and more reliable cross-border payments using cryptocurrencies.
