The US government intends to devalue Cryptocurrencies Price. Find out why?
Intro: The Cryptocurrency Price Executive Order
Well, Cryptocurrency Price has stood the test of time, again and again, and again. There is a reason it’s received the nickname the honey badger of money, or to shorten that up the money badger. But this week, Bitcoin is going to face its toughest test of all against the US government. Will it prove its resilience or will it crumble under the pressures of the government.
It’s time for Chico Cryptocurrency Price!! Well pulling out the Bitcoin or Cryptocurrency price over the past 7 days, there is no doubt BTC has a rough go of it. The price has fallen from above 44 grand last week, to as of yesterday sitting above 38 grand. Expanding out the price chart we can see once again, the price is going back into a range we have been accustomed to, the 40k to 37.5k range.
Throughout the end of February, we spent most of our time there, and now we are once again bouncing around in this range for the past 4 days. So, the burning issue on everyone’s mind is: when will this range break? Will the Cryptocurrency Price break below it and officially enter a bear market? Or will Cryptocurrency Price once again break above it and turn bullish?? Well if the government has their ways, it will be the former, a break below and we officially enter a bear market? This is one of the most persuasive explanations for Cryptocurrency Price.
Cryptocurrency Executive Order coming this week
What do I mean?? Well, the Cryptocurrency Price executive order…which has been talked about so much is finally coming this week!! Bloomberg reported with the article “Biden to Sign Cryptocurrency Price Order as Firms Face Sanctions Pressure”…and the article states
“President Joe Biden is expected to sign an executive order this week outlining the US government’s cryptocurrency policy.” The directive instructs federal agencies to investigate potential regulatory changes as well as the national security and economic implications of digital assets. The White House’s stance on Cryptocurrency Price has received renewed attention in recent weeks, with the imposition of sanctions on Russia by the US and its allies, raising worries that organizations and people would utilize cryptocurrency to circumvent the limitations.
The Cryptocurrency Executive Order, which has been in the works since last year, would force federal departments to report on what they’re doing with digital tokens later this year. From the State Department to the Commerce Department, the strategy is likely to start defining out roles for departments across the government. The White House order is also anticipated to address the idea of a U.S.-issued central bank digital currency or CBDC, but it is unlikely to take a clear stance because the Federal Reserve is currently looking into the matter.
Cryptocurrency Executive Order might not be as bad as it seems
So, my friends, Cryptocurrency Price is going to be in the government hot seat this week. It might not be as horrible as it appears. Yes, government agencies are going to be assessing Cryptocurrency prices and digital tokens, and they are going to have to report their findings to the government leaders…but it’s not like any new law is going to be enacted right away. How do I know this? Well, you just have to go back to earlier Bloomberg articles on the issue. All the way back in January, Bloomberg also reported on this Cryptocurrency Price executive order in an article titled
“White House Is Set to Put Itself at Center of U.S. Cryptocurrency Price Policy” and this article stated “The late-stage draft of the executive order details economic, regulatory and national security challenges posed by Cryptocurrency, said the people who asked not to be named discussing internal deliberations. It would call for reports from various agencies due in the second half of 2022.”
So, The Executive Order on Cryptocurrency prices may not be as harmful as it appears. The bears are going to use this narrative to push down the markets. A Cryptocurrency Price executive order? New Cryptocurrency Price laws!? The end is nigh… But in reality…there won’t be any new laws, there won’t be any legislation drawn up this week. This is just asking the federal agencies to begin looking at Cryptocurrency prices and to report to government officials their findings This was always going to happen, and now it finally is. We just gotta hope and pray that they do report on it justly, and with open eyes.
Cryptocurrency Executive Orders: explained
Also, people need to understand what a Cryptocurrency executive order is. A Cryptocurrency Executive Order is not a law perse… it does not have the force of law. Only the Legislature is granted that power by the U.S. constitution. Although, it can be used to direct law under emergency powers. This Cryptocurrency executive order will be a directive of how the executive branch should enforce the law. It is an interpretation and manifestation of action according to such law.
This Cryptocurrency executive order will most likely be interpreted under the International Emergency Economic Powers Act. Yes, laws could be enacted with the emergency powers, but those laws can and will be challenged if they are overreaching, and the white house knows that and doesn’t want that. That is why I think there will be no laws or legislation enacted with this order and for the most part, will be a nothing burger.
BIG FED INFLATION NEWS this week
So the executive branch is coming after Cryptocurrency Price…but this is not what we should worry about from the government. We should be more worried about what’s going to happen from another branch of the government. The FED, the Federal Reserve bank. Now if you didn’t know, something is coming this week that is also very important to Cryptocurrency Price, and the markets all around.
Inflation data for February will be released Thursday, March 10th. Now the last time Inflation data was released was February 10th, and we got some surprises. As we can see from the press release they said “Over the last 12 months, the all items index increased 7.5 percent before seasonal adjustment.” Yes, year over year, inflation hit all items with an increase of 7.5 percent. That means a dollar back February 10th of 2021, was worth 7.5 percent more than a dollar on February 10th of this year.
What happened to BTC last time CPI data was released
So what happened to the Bitcoin price when this data came out? Dump baby Dump…as we can see the day before the Cryptocurrency executive order came out, February 9th, Bitcoin was front-run, pushing it up to 45k, but then DUMP and just a few days later, it was below where it started, bouncing around 42k. The Markets obviously didn’t like the high inflation data reading of 7.5 percent. I wonder what the expectations were? As we can see from this CNBC article, the January inflation data was projected to rise by 7.2 percent year over year. We came out .3 percent higher…at 7.5 percent.
What will happen to BTC when new CPI data is released?
So what are we expecting this time around?? Well as we can see from this XM research article they say “The headline measure is expected to edge up to a new 40-year high of 7.8% y/y and the gauge which excludes volatile food and energy prices is forecast to jump to 6.4% y/y, further deviating above the Fed’s 2.0% symmetrical price target.” The headline measure for all items is expected and projected to hit 7.8 percent.
So what does this mean? Well if we come in and hit that target or come in below…that will be bullish for the markets…but if we come in higher, and .3 percent higher like last time, that would put inflation at 8.1 percent. It wouldn’t be good for the markets overall, and I would expect a similar reaction with the Bitcoin or Cryptocurrency price…a deflation down over the days after the reading comes out.
But unlike February, we have another Federal government meeting that could affect the Cryptocurrency Price markets. Just 5 days after the inflation data comes out, the Federal government is meeting for another FOMC meeting where they could do what they have been alluding to for a while now. And raise those interest rates.
How much will FED raise interest rates after this FOMC meeting?
March 15th through the 16th, we have the next FED meeting, and it is projected they are going to begin raising interest rates to combat what we just talked about…the growing inflation. So what is the FED going to do?
Will they raise rates and by how much? Well, last week, the Bank of Canada raised their rates, and as we can see they raised them by .5 percent in a largely expected move… So are we going to fall in line with our brothers up North and raise them by 50 basis points or are we expecting something less steep?? Well according to Morgan Stately it will be less steep. The Morgan Stanley CEO spoke and FXstreet caught the important quotes.
CEO James Gorman said ““You have to raise rates, but you don’t want to tip the economy into recession,” “If you tip the economy into recession, you get stagflation, that’s really bad.” “Met with Powell days before departing for Australia, believed the central bank had planned to launch its tightening with a 50 basis-point hike, but recent events had lowered the ambition.”
50 basis points were baked in, but now the war with Ukraine has lowered ambitions. So what will happen come March 15th?? Well according to Double Line Monday Minutes, a 25 point basis raise is coming. They said “Off Fed Chairman Powell’s remarks to Congress, the probability of a 50 bp rate hike in Fed Funds at the March 16 FOMC meeting, Jeff Mayberry notes, “plummeted down to zero” with a 92% probability of a 25 bp increase.”
So my friends, the chances of a 50 basis point increase fell to zero, and now everyone is expecting a 25 basis point increase. Which the markets are baking in as we speak…if expectations do happen, I would expect the markets to have much of a non-reaction..but if they do the unthinkable, raise them by 50 basis points, expect the markets to tumble as the FED gets more aggressive to combat this “inflation”… The government is coming for Cryptocurrency prices this week and next directly and indirectly. Time to stay on our toes.