Is the Biden Administration Trying to Regulate the Cryptocurrency Markets Indirectly?
The US Secretary of Treasury, Janet Yellen, is proving to be a tough opponent for the digital asset markets. At the occasion of her appointment, she raised some points about cryptocurrencies causing damage to the environment and talking about a possible regulatory bill chartered on the matter of cryptocurrencies. A few days after her appointment, President Joe Biden announced a possible increase in the capital gains tax for the accredited taxpayers.
Even though this tax would only affect the people who have an income slab above $1 million, the opposition for this proposal was strong from the business community. The effects of the statement were quickly reflected on the stock markets as well as for cryptocurrencies. However, after sometimes the markets recovered, and Bitcoin also took back the position of $59K. Yet again, Janet Yellen has updated the American citizens that the possibility of the increase of interest is in the cards.
What is the Future of Bitcoin in the United States?
Janet Yellen remarked in an interview with The Atlantic that the Biden administration is implementing an increase in interest rate. She added that these interest amendments are directed towards repairing the economy that the COVID-19 pandemic has damaged. The panic from this statement wreaked havoc in the crypto markets.
Bitcoin was starting to recover from its last dip. The effect trickled down to other altcoins like BNB, ADA, XRP, and some others that lost an average of 10% of their entire value. According to Yellen, the modest level of higher interests would encourage investment in fixed income products. It would also absorb more capital from the trade commodities liquidation such as gold and cryptocurrencies.
Veteran Investor Ray Dalio predicted in the past that the US government would get intimidated by Bitcoin’s exponential growth and move to regulate it through direct or indirect channels. Many financial analysts have remarked that Bitcoin is set to reach a six-figure evaluation during the current bull run. Nevertheless, not a single Bitcoin ETF has been approved in America.
It could be true that the US government wishes to contain and control Bitcoin and cryptocurrency growth. However, the possibility of a ban seems highly unlikely. S&P 500 and Dow Jones also went down after Yellen’s predictions. Later on, both were able to recover and stabilize.
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