Bitcoin is the world’s most famous and valuable cryptocurrency. Since its inception in 2009, it has been the driving force of the cryptocurrency market, with an outstanding growth rate for the BTC coin.
BTC started at less than $1 in 2009 and is now just north of $26,000 in August 2023. The Bitcoin price all-time high was in November 2021, when it crossed $65,000, a market surge that saw most cryptos rising in value before embarking on a steady decline.
Bitcoin, out of 23,000 cryptocurrencies out there, grabbed much of the attention not only from crypto enthusiasts and investors but also from policymakers and centralised financial institutions.
Worldwide policies affected the performance and price of Bitcoin. Some economies banned and restricted dealing with Bitcoin, while others encouraged it. These decisions changed multiple times, and each time, the Bitcoin price was moving accordingly.
Besides policymakers, monthly, quarterly and annual reports and financial indicators also affect Bitcoin price. These reports discuss economic growth and performance, which is reflected in the trader’s activities and speculations of different markets, including crypto.
Gary Gensler, the SEC’s chairman (U.S. Securities and Exchange Commission), has been on a steady stride against the crypto market, calling to regulate many cryptocurrencies, including Bitcoin, suggesting control mechanisms on issuers, traders, and crypto market makers.
On his hearing in the Senate Committee on Banking, Housing, and Urban Affairs, Gensler insisted that cryptocurrencies and tokens do not lack any characteristics that prevent them from being regulated by the SEC.
Gensler’s demands stem from the claims that financial markets are unstable and that 99% of exchanges are those who trade unregulated securities. This claim led to the filing of a lawsuit against Coinbase and Binance, two of the largest exchanges in the world.
The aftermath of this news can be unfavourable for crypto enthusiasts. Regulating cryptocurrencies means putting strict rules on issuing and trading cryptos and can inhibit futuristic developments and technological advancements in Web 3.0 and decentralised platforms.
The crypto market does not seem to have reacted to these events yet, and most crypto traders are holding on to their current assets and waiting before engaging in new crypto investments.
Crypto investors wait for the monthly CPI (Consumer Price Index) report to shape their trading patterns and strategy. The consumer price index refers to the price change of the consumer’s basket, such as food and commodities.
Originally, when the CPI rises, the crypto market moves towards a bearish sentiment because consumers will spend more money on food and have less money to spend on crypto. However, this depends on the growth rate.
The CPI in the US grew by 0.6% in August, which is a positive increase but a tiny one and is not expected to shake the crypto market. Nevertheless, an increase in CPI leads many to invest in Bitcoin to hedge for the rise in inflation, resulting in a bullish market.
The recent news from the CPI reports caused a slight increase in the Bitcoin price. On 12 September, one day before the report, Bitcoin closed at $25,665. The next day after the report, the price jumped to $26,056, recording a 1.5% increase, and is currently trading on 14 September at $26,270, a 0.8% increase as of writing this analysis.
The Bitcoin price has picked up an upward trend since 12 September. We also used the exponential moving average indicator in three different timelines to analyse current and future performances.
The 10-day EMA sank massively on the 10th and 11th of September. However, together with the price trend, the EMA 10 started moving upwards and crossing the 50-day EMA, indicating a potential price increase.
Furthermore, the EMA 10 continued moving upwards and crossed the EMA 200, indicating a bullish movement which still lasts until today with the increasing Bitcoin price. Note that the 50-day EMA is also moving upwards and getting closer to 200 days EMA.
The SEC decision can highly impact the market and challenge the Bitcoin price. However, the current BTC price performance suggests it might continue its bullish move for a while, especially if EMA 10 continues its positive trend and EMA 50 exceeds EMA 200.