Why Are Bitcoin Traders Buying the Dip?
Scroll DownInflation is up in the United States. Companies have been raising the cost of cost of goods for many reasons. This has had an impact on many areas of the market. One area is that of bitcoin. Those who have been examining this form of currency often find themselves feeling bearish about the market for it. They have noted that the market for this type of currency has fallen and continues to fall. This has been going on for much of the past year. Bitcoin reach a high of $69,000 on November 10th. For some bizarre reason, this seems to coincided on the day American officials announced that inflation had reached a thirty year high in the United States.
Lots of Pressure
Efforts continue to be made to find ways to regulate bitcoin issuers. Such efforts are coming from many regulators around the world. The U.S. Securities and Exchange rejected VanEck’s spot exchange traded fund. The denial came in the aftermath of the argument that their the Tether’s stablecoin was not stable. There were also issues with insolvency and well as concerns raised that the price of the coin was being manipulated by outside forces. This took place on November 12th.
Congressional Hearings
This currency has also been a huge source of debate in the United States. The U.S. Senate Banking, Housing and Urban Affairs Committee was in session in Congress. Officials on the committee held hearings about this issue on December 14th. The center of attention was on stable bitcoins. Many aspects of these coins were under consideration. That includes issues surrounding consumer protection as well as risks regarding the use of such coins.
Such hearings are an example of the current mood that many in this community are feeling when it comes to this issue. CME’s Bitcoin futures contracts premium are seen in a light that indicates there might be problems in the markets. This measure focuses on varied forms of measurement of the value of bitcoin. It may be a red flag that investors should consider to keep in mind.
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