As we all know that price of Bitcoin was soaring continuously since last 2-4 days until today. Bitcoin is now going in consolidation phase where a retracement or pullback to $7000 is expected. People were FOMO'ing in Bitcoin since it broke $6400 resistance and continue going Bullish until $7500 resistance. So, a retracement was inevitable after an aggressive short-term Bull run.
Another reason of Bitcoin weakness (retracement) is that U.S. Congress will decide today the status of cryptocurrencies or whether they can be used as 'money'.
Two U.S. House of Representatives will have a hearing today on the use cases of cryptocurrencies in American life and whatever the decision would be, it will definitely affect the price of Bitcoin.
Congress will pass a decision of the use of cryptocurrencies by any central bank as well as the Digital cash use cases.
As per this source, U.S. Managing Director of eToro, Mr. Guy Hirsch said in a statement that:
"Today’s hearings are a great step in the right direction.We encourage regulators to hear more from good actors and companies with an international presence since they would be valuable to this discussion in Congress. Cryptocurrencies are by design global assets and companies with global perspective are uniquely positioned to help regulators better understand the diverse regulatory approaches and best practices. Any law that Congress will pass affecting cryptocurrencies will have global impact on foreign companies that are doing business in the US or want to enter the US market and therefore it is important for US lawmakers to facilitate dialogue with other nations on this matter."
He also added that cryptocurerncies have some properties which don't apply generally to all commodities and securities and thus a separate decisive look is needed for the evaluation of cryptocurrencies.
Today's hearing will definitely impact the BTC's price for sure. If it is positive, the we could expect a sudden rise in BTC price or else we could see a further weakness in BTC price.
Thanks for reading ..!!