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23.09.202116:26 Forex Analysis & Reviews: The fight against cryptocurrencies "in a presidential way"

Today, it became known that the White House is preparing to support an active hidden confrontation in the fight against cryptocurrency enthusiasts. And if yesterday fans of digital assets declared that they were ready to run for US senator, today a kind of "response" came from US President Joe Biden. As it became known, he plans to appoint a law professor who criticized cryptocurrencies and advocated for the government to play a much greater role in the banking sector to a post in one of the leading regulatory bodies of Wall Street. We are talking about Saule Omarova, who recently said that she wants to end the kind of banking in which everyone knows him. Now she will be involved as the head of the Currency Control Department. This OCC management controls the country's largest creditors, including JPMorgan Chase & Co., Bank of America Corp., and Citigroup Inc.

Exchange Rates 23.09.2021 analysis

According to experts, the choice of Omarova, who teaches at the Cornell University Law School, is a serious blow for Wall Street since she is expected to have stricter supervision and stricter rules. However, before her appointment, it is still necessary for the Biden administration to support Omarova's new agenda. If she sticks to some of her most radical positions, such as transferring consumer banking services to the Federal Reserve System from private institutions, it is not a fact that she will stay in this post for a long time.

But since we are talking about cryptocurrencies, I would like to know what does not suit the next American official. Saule Omarova recently stated that the rapid growth of cryptocurrencies "benefits mainly the already existing non-functional financial system." Omarova claims that digital tokens threaten to destabilize the economy and can be abused by private companies to the detriment of state guarantees. The next opponent of the cryptocurrency industry will probably work in tandem with the SEC, the Ministry of Finance, and the Fed to take this area under control as quickly as possible and quickly regulate it. Time will tell whether all this will benefit the crypto-currency market. So far, there is no reaction to such appointments. There is not even a market reaction to the statements of the already opponent of the cryptocurrency market, the head of the SEC, Grispen.

It is worth noting that the Biden administration has been trying to fill the vacancy in the OCC for a long time. Earlier this year, the White House was forced to abandon previous candidates, including a former Treasury official who was in opposition from progressive Democrats. If approved by the Senate, Omarova will become the first woman to be a full-fledged leader of the OCC.

Exchange Rates 23.09.2021 analysis

As for the technical picture of bitcoin, a return to the resistance of $ 44,900 is necessary to stabilize the situation. After fixing above this range, it will be possible to talk about recovery back to the level of $ 47,900 and an update of $ 50,800. If buyers fail to offer anything around $ 44,900, and the 200-day moving average passes a little higher, then most likely the pressure on bitcoin will return, and we will see a repeated attempt by sellers of the world's first cryptocurrency to gain a foothold below the support around $ 42,000. Its breakthrough will quickly push BTC to a minimum of $ 39,600, which will only worsen the situation and maintain the downward trend in the trading instrument.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2021
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