The turmoil in the crypto market finds no end to its ills as the asset class continues to remain in the grip of the bears. Although the FOMC meeting did not reveal any major setbacks for the economic markets. Meanwhile, traders in the company remain dubious about the industry’s future prospects.
In the interim, a recent bill in Congress gives draconian powers to the treasury, that haunts the crypto business. While the terror of FED’s amendments sails to a later date. Proponents from the business intend to voice against the bill, to help the business from drowning further.
Is Crypto Town heading for another major FUD?
The recent FOMC meeting did not turn out as bearish as expected, as the Fed is not passing major amendments. Like rising interest rates, shrinking the balance sheet or quantitative tightening. However, interest rate hikes are actively considered by the authorities.
Successively, the interest rates could see a spike by the March meeting or whenever the need arises. Similarly, the authorities would modulate amendments as per the situation, inflation numbers, economic imbalances.
That said, the industry continues to be stuck in a rut. While the market capitalization suffers a loss of 3.44% compared to the previous day, with figures at 1.65 T$.
A discussion on a public platform sheds light on the recent bill by “The America Competes” in the Congress. The 2900 pages long bill, contains provisions that gives the treasury unlimited powers and control over the crypto market. The bill surfacing again post-withdrawal from the infrastructure bill has been irking partisans.
While currently the Treasury has less control over cryptos. With the new bill, the Treasury can make decisions without any formal process and according to its own understanding. The text allows the Treasury to block fund transactions and exchanges.
Without any administrative controls or pre-determined procedures. The move has enraged proponents who are now in a pact to voice against the bill.
In summary, given the worsening of the situation with the bill pandemic, possible blockages, rising inflation, among others.
It would be advisable for traders and investors to plan accordingly, factoring in the aforementioned limitations. Concluding, the business needs to unite against the unruly amendments of the government and the FUD prevailing from it.
