The crypto-verse is now in a crucial junction, as the week holds two of the major announcements. From two very important regions of the coin market’s business. While, a hike in rates by the FED is known to the masses, and has been the topic of discussion. Europe possibly curbing Bitcoin and other PoW chains have been flabbergasting for the masses.
Wherefore, the sentiments in the business have been taking a toll. The fear and greed index continues to lower towards extreme fear, which is presently at a score of 23. Successively, investors and traders from the industry are now foreseeing a possible crash. Which could take down BTC’s price back to levels around $35,000 and the broader market to the bottoms.
Will Bears Moonsault The Bulls This Week?
The European parliament’s Economic and Monetary Affairs Committee will be voting on a draft proposal of the MiCA framework. The MiCA framework here stands for Markets in Crypto Assets framework. The draft proposal holds additions that could result in the ban of mining and trade of cryptocurrencies coming from PoW.
Successively, the crypto assets in Europe would have to adhere to minimum environmental sustainability standards. And maintain compliance to standards that will be rolled out in future. While critics have been asserting this was poised to happen owing to the global electricity crisis.
Conversely, partisans have been advocating Bitcoin’s energy consumption with that of other sectors. Consequently, a report from Messari suggests that in 2021, the emissions of the Bitcoin network. Was at an approximate 41 metric tons of CO2, which is lower than the global banking, gold, aviation and other industries.
Moreover, the FED finalizing its quarter-point rate hike is nearing the horizon. Crypto analytics firm Santiment cites that Bitcoin and Ethereum have been in relation to the S&P 500. Since the start of the year, the decisions could impact greatly. In succession, the interest of folks in inflation and FED is spiking up. Which is heading towards a Make-or-Break week.
Summing up, apart from the said hiccups the executive order holds concerns around PoW chains. Whilst the industry will eventually rebound from the torments and fall. We can expect a notable plunge towards the bottoms, taking Bitcoin to levels around $35,000. And altcoins to support zones.