Bitcoin's level $47,000 is collapsing, while ether is trying to consolidate $3,680. This news is not positive for cryptocurrency traders expecting currencies to rise at the end of this year. Why bitcoin and ether are at risk of following a bearish trend and what particularly affects them, I discussed in detail in this review: how December Fed meeting may affect bitcoin and ether
Now I want to mention how stablecoin continues to come under pressure from US lawmakers and its possible outcome.
The Senate Banking Committee's top Republican Pat Toomey said yesterday that cryptocurrency stablecoin issuers would be able to choose from three different regulatory models. It is not clear whether this aspect is positive or negative, however they all would have to operate in accordance with banking statutes. Besides, it is not in line with the nature of creation of these coins.
The Republican outlined the plan for a future bill during his speech at Tuesday's session. He stated that the issuers of the stablecoins could register as money senders, which would force them to obey state regulations. Congress and federal agencies are currently trying to decide how to best regulate the crypto industry, including stablecoins, in which the value of tokens is tied to another asset, such as the dollar, to reduce volatility.
However, experts believe that currently, it is unlikely that any legislation proposed by Republicans will gain support. The fact that the majority of Democrats believe cryptocurrency is associated only with risks, will stall the new bill. Besides, Republicans have been more often discussing cryptocurrencies and the benefits of the new technology lately.
Toomey noted that the new legislation should be aimed at protecting consumers, as well as preventing possible risks to the financial system. However, he believes it should be designed to foster innovation in the rapidly evolving global digital economy.
Notably, last month, the President's Working Group on Financial Markets released a report expressing concern about the risks that stablecoins pose to the US economy. The report urged Congress to pass legislation that would require stablecoin issuers to become banks with insured deposits, capital requirements, liquidity and oversight by the Federal Reserve System.
Robert Kiyosaki
Finally, I would like to mention the author of the bestseller "Rich Dad, Poor Dad". Robert Kiyosaki recently stated that a crash and depression was coming, predicting that gold, silver, bitcoin and real estate will also crash in the near future. He added that he was planning to buy back all four types of investments after the crash.
However, I want to calm you down if you still believe in Kiyosaki's predictions. It is not his first similar statement on the subject, however the crash is definitely not expected in the near future, even based on economic statistics, fundamental data and the Federal Reserve's actions to tighten the monetary policy.
Kiyosaki tweeted that the Federal Reserve and President Joe Biden are pushing fake inflation upward, adding that a crash and depression will occur due to this reason.
As I noted above, the famous writer has warned of a crash several times before. In June, he said that the biggest crash in world history was coming in the early fall. In September, he repeated his warning, expecting a huge stock market crash in October. Then he warned that the US was climbing into depression. He is definitely better at writing than predicting.
With the basics of market fundamentals, it is clear that neither of these events is going to occur in the near future. However, the correction on the cryptocurrency market at the end of the year will be a good reason to buy some coins, counting on their growth in the next 2-3 years.
Technical picture of bitcoin
Trading is conducted in a fairly clear sideways channel. I recommend taking decisions, taking this fact into account. The main target for buyers now is a rise to the level of $51,660 and its breakout. A break beyond this level will provide a good recovery to the area of $55,730, and there it is close to $59,400, which will complete the cryptocurrency fall on December 3. It will be possible to mention the return of pressure on BTC after it breaks the level of $46,900, which will give a chance to climb $42,300. However, active buying around $46,900 and holding it will attract new investors to the market - a bullish signal for bitcoin.
Technical picture of ether
Bulls failed to climb the level of $3,912, then the ether fell and tested the nearest support at $3,680, which is the main focus now. This is a very alarming time for the bull market, but it's too early to worry. Only further climbing above $3,912 level will return demand for ETH. The bulls' key target is further defence of $3,680 as a breakout of that level as well is a very bad sign for buyers at the end of this year. If demand for ether returns, bears will actively defend resistance of $4,140. A breakout of $3,680 would provide a chance to reach $3,448, the level that saved the market during the December 3 sell-off.