The last time Bitcoin was trapped below $40,000 was in early March.
The White House took its first tangible moves toward regulating crypto.
Bitcoin’s price has stalled slightly at around $40,000 on Friday due to several issues, including growing inflation, geopolitical problems, and a shift in monetary policy. In addition, the crypto market has closely followed the stock market in recent months, making it more closely linked to global economic considerations.
Inflation on the Rise
It was revealed last week that the Federal Reserve intends to reduce its balance sheet by $95 billion each month to fight inflation. The annual increase in the consumer price index (CPI) for March was 8.5%, the highest inflation rate since 1981. The conflict in Ukraine also continues to exacerbate the already high volatility of the stock market.
The last time Bitcoin was trapped below $40,000 was in early March when President Joe Biden signed a wide executive order on cryptocurrencies, and the price surged by 10% to $42,000. Government agencies were tasked with creating a strategy to regulate cryptocurrencies and considering a government-issued central bank digital currency in the executive order signed by Vice President Biden.
With this announcement, the White House took its first tangible moves toward regulating crypto. A price of $48,000 was reached many times at the end of March when Bitcoin was trading just over that level. Popular analyst Lark Davis tweeted considering the possibility of purchasing an asset that will be worth a million dollars in the future but is presently selling at less than a twentieth of that price.
So far this year, Bitcoin’s highest point has been on Jan. 2, when it was just shy of $48,000. This is the first time in six months that it has remained above its January low of below $34,000. According to CMC, the Bitcoin price today is $40,114.97 USD with a 24-hour trading volume of $16,956,309,136 USD. Bitcoin is down 0.20% in the last 24 hours.