Bitcoin declines and the European Union rejects the proposal to ban cryptocurrencies

Bitcoin has experienced strong fluctuations over the past two weeks, in this period the price of Bitcoin has risen above 40 thousand dollars twice

Bitcoin has been subjected to strong fluctuations over the past two weeks, in this period the price of Bitcoin rose above 40 thousand dollars twice, however, it failed to hold and was trading below this level in light of the continuing pressure, as the unfavorable global geopolitical tensions escalate as well as inflation levels Accelerated.

However, if the massive build-up of short positions turns out to be true, and we could see Bitcoin heading below $35,000 and all the way to $30,000, many analysts have not ruled out the possibility that the price of the coin again touches below $30,000 levels.

Bitcoin

With rising inflation numbers the market will continue to be volatile in the future, the Fed is expected to raise interest rates in the coming weeks and months and this time could be even more severe due to higher inflation, and while Bitcoin offers a great long-term investment, it is necessary to be patient with all the volatility short term.

EU rejects proof of work ban after backlash

The European Parliament voted against a controversial proposal to ban all proof-of-work amid widespread backlash. MEP Ondrej Kovarik who works on the Economic and Monetary Affairs Committee (Econ) praised the decision by saying: “We just rejected a proposal calling for a ban on crypto trading. Like Bitcoin in the European Union.”

On the afternoon of Monday (March 14) the proposal document provided the markets in the regulation digital assets(MICA): “Crypto-asset providers shall not provide services in any way related to crypto-assets that do not meet the environmental and sustainability criteria in accordance with Section 3a.”

Econ has been looking at mining, buying and trading PoW cryptocurrencies and concerns over the environmental requirements of its Proof of Work technology, but with the majority of major cryptocurrencies including Bitcoin and Ethereum operating on the PoW consensus, such a ban would have far-reaching consequences and become the subject of criticism across the board. market.

The US President acknowledges Executive Order to Support Bitcoin

The executive order will direct the federal agencies to draft cryptocurrency regulations that ensure responsible innovation in digital assets, and this affected the price of Bitcoin, which rose by 8.46 % on Wednesday (March 9) to exceed the level of $42,000, but after a while it fell to trade below the level $40,000.

“Whole government” efforts to regulate the crypto industry will focus on financial stability, consumer protection against illicit uses and fraud, and protection of global financial stability, as well as leadership in the global financial sector and the promotion of responsible innovation.

Providing the reasons for the development, it was explained that digital assets including cryptocurrencies have experienced exponential growth in recent years, surpassing the $3 trillion market cap last November and rising from $14 billion just five years ago. About 16 % Americans have invested, traded or used cryptocurrency.

Furthermore, more than 100 countries are exploring or experimenting with Central Bank Digital Currencies (CBDCs), which are a digital form of a country's sovereign currency.

Mohamed Abdel Khaleq
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