Hodler got a nice gift for Christmas with Bitcoin’s new all-time highs. However, it is now also coming into the crosshairs of regulators.
Bitcoin (BTC) has had a week like no other. It hit new all-time highs of $28,400 and is holding very high.
What’s next for it?
Cointelegraph presents five factors that will influence the direction of the Bitcoin Formula price this week.
Gold rises on Trump’s signing of stimulus package
Markets were spared a nightmare this week after U.S. President Donald Trump agreed to sign off on Congress‘ $900 billion stimulus package.
The package makes the U.S. central bank’s debt pile even bigger and includes various perks for businesses. For U.S. citizens, however, the direct financial aid is less than it was in March.
Trump said he could not agree to the second package because of the small amount of direct payments ($600 instead of $1,200), but later changed his mind.
Thus, the markets started the new week on a positive note. The S&P 500 futures were able to record slight gains before the opening on Wall Street.
At the same time, the price of gold has also grown. Data shows that the precious metal could now make its biggest annual gain in a decade.
Compared to the end of November, XAU/USD is up $111, or 6.25 percent.
„President @realDonaldTrump vetoed only nine bills. That’s the fewest number since Warren Harding, who was in office for only two years, from 1921 to 1923,“ as gold advocate and notorious bitcoin critic Peter Schiff tweeted when the bill was signed into law.
„Since Chester Arthur (1881 to 1885), no president who has served a full term has vetoed fewer bills. You can’t drain the swamp by making it deeper.“
Regulations expected for Bitcoin
After becoming popular with a wider audience over Christmas and reaching new highs, Bitcoin could soon run afoul of governments, sources warn.
With a new all-time high of $28,400 and a monthly increase of 55 percent, Bitcoin is now on regulators‘ radar as its mass appeal grows. Even for its proponents, the next year could be a challenging time.
After still-Treasury Secretary Steven Mnuchin tried to force new laws on non-custodial wallets, his successor Janet Yellen is unlikely to do any better, they say.
„In general, I think we’ve had challenges with Democrats. They favor more regulation, more oversight,“ chief strategist at digital asset manager CoinShares Meltem Demirors told Bloomberg on Sunday.
„I’m a little concerned about the direction things are going.“
As is common in the U.S., divergent political allegiances mean attacks by crypto-friendly people elsewhere can be mitigated. The new chairman of the U.S. Securities and Exchange Commission (SEC) Elad Roisman is considered a fan.
Analyst: bitcoin decline at $28,400 ‚very healthy‘
Focusing on the recent Bitcoin spot market performance, Monday may become an important test for the bulls given the momentum from the weekend.
After hitting an all-time high of $28,400 on Sunday, Bitcoin saw a decline that many had already expected.
„#Bitcoin is making a very healthy correction as it went pretty vertical. Could be a temporary top,“ Cointelegraph Markets analyst Michaël van de Poppe summarized.
„What comes next? Consolidation, sideways movement, less volatility. That gives the rest of the markets room to keep up, $BTC pairs are doing well.“
BTC/USD hourly candles chart. Source: TradingView
Van de Poppe sees potential for altcoins to respond to the bitcoin surge, arguing that there are already signs that the „alt season“ is upon us.
„After #Bitcoin finishes its run (and it was pretty vertical), money will flow towards altcoins with large market caps. And then toward medium and then small market cap altcoins,“ van de Poppe continued.
„Altcoins are not dead, the flow of money is still the same.“