- US midterm elections are scheduled for November 8, as the event draws close, 152,000 Bitcoins have hit cryptocurrency exchanges.
- Analysts argue that a bullish continuation in Bitcoin price is unlikely with three key events on the horizon.
- Bitcoin price could continue its decline through the week as bulls fail to defend the $20,874 level.
US midterm elections are expected to have a key impact on cryptocurrencies. Sam Bankman-Fried, FTX exchange CEO and founder has admitted to being a significant donor to both sides, ahead of the 2022 midterm elections.
The elections could decide the future of DeFi and NFT platforms and issuers since they have their profitability riding on some key regulatory bills.
Also read: Solana price: Will assurance from co-founder at Breakpoint conference help SOL?
US midterm elections draw close, two impactful bills up for consideration
The Senate Agriculture Committee’s Digital Commodities Consumer Protection Act (DCCPA) and stablecoin legislation are both pressing crypto regulatory matters. The US midterm elections are expected to impact the crypto community as regulation takes center stage in cryptocurrency adoption and utilization worldwide.
US midterm elections are scheduled to occur on November 8 are key to crypto, and more significant than the five federal electoral cycles that cryptocurrencies have been around for.
The DCCPA defines cryptocurrencies as “digital commodities” and this implies that Commodities Futures Trading Commission (CFTC) is the primary regulator and maintains oversight on digital assets. This is consistent with the critics of the US Securities and Exchange Commission’s regulation by enforcement.
A draft of the bill exempts developers from registering with the CFTC, however DeFi operators fall under the purview of the authority. The other key concern is which federal agency should regulate stablecoin issuers. Either the Federal Reserve or some special purpose watchdog will regulate issuers of stablecoins. The authority will determine whether stablecoin issuers gain access to federal backing, such as lending facilities or deposit coverage.
Interestingly, ahead of the US midterm elections 152,000 Bitcoins worth $3.15 billion flooded exchanges in a 24-hour period. Coinglass, a crypto intelligence tracker noted that the cryptocurrency market is shrouded with uncertainty, and a large volume of Bitcoin has hit exchanges.
A spike in Bitcoin reserves on exchanges is indicative of an increase in selling pressure and a decline in the asset’s price. Higher supply of Bitcoin on exchanges implies that there is a relatively high quantity of BTC available for sale and profit-taking. This negatively impacts BTC price.
Bitcoin price decline could continue, bulls fail to defend key level
Bitcoin price could decline further, according to crypto analyst CrpNuevo. The technical expert looked at the asset’s price action over the weekend and argued that three key events are scheduled to occur this week-
- Midterm elections on November 8
- Release of Consumer Price Index on November 10
- US bank holiday on November 11
CrpNuevo predicted a decline in Bitcoin price to the $19,400 liquidity level.
BTCUSDT price chart
PostyXBT, crypto analyst and trader evaluated Bitcoin price and observed that the asset is retesting the breakout area. PostyXBT believes a break and retest of the weekly open area at $20,874 would imply a bullish breakout is in the cards for Bitcoin. A climb above this level would invalidate the bearish thesis for Bitcoin.
BTCUSD price chart
Samuel Bankman-Fried supports both sides in the US midterm elections
SBF, the founder and CEO of FTX exchange, told his followers that he supports both sides in the US midterm elections. The exchange has recently been shrouded in controversy for SBF’s opinion on crypto regulation where the FTX CEO points regulators towards DeFi and argues that they are in need of regulatory policies.
The crypto billionaire revealed that he has supported constructive candidates across the aisle and is working with them to support permissionless finance.
1) I was a significant donor in both D and R primaries.
— SBF (@SBF_FTX) November 5, 2022
Supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC.
And working with them to support permissionless finance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.