The Infrastructure Bill and Bitcoin
Although the cryptocurrency market has been on the rise the past few weeks, there is a small hidden section in the Infrastructure Bill that was recently introduced, which may threaten this recent growth.
Bitcoin has surpass the $40k resistance level and, at the time of writing, is sitting at $42,861.00 and appreciating rapidly. BTC, the largest cryptocurrency as per Market Cap (the total market value of a cryptocurrency’s circulation supply), has gone up 7% the past week and it all seems to indicate that the bulls are out. Etherum, which has become a very attractive hedge against inflation, is valued at $2920.00 at the moment. Ether, the crypto of the Ethereum protocol, has increased almost 22% during the past 7 days, placing it among the fastest growing crypto among the more than 11,000 in circulation.
All this growth and confidence could come down cracking if the Infrastructure Bill, which consists of more than 2,500 pages, passes the clause that enforces stricter regulation and monitoring of cryptocurrencies. The bill has not been approved and there are thousands of investors and institutions writing local and federal lawmakers to carefully read (but who reads a 2,500 page bill, really!!!) the bill and make changes that can spur growth for the crypto market, which is the future of finance and financial technology, instead of shutting it down. This section of the bill is hard to find and the details can be confusing, but nevertheless, its impact can have a negative effect on the prices and health of the market and viceversa.
Regardless, the crypto market has been resilient, but we are at a moment when we need to stimulate the growth of the crypto market in a controlled way and find strategies to allow it to co-exist with the current markets. I believe that it’s not possible to completely controlled or slow down the growth of an decentralized, democratic, and global financial technology.