Cryptocurrencies must not be regulated, says Tesla chief Elon Musk

"Bitcoin Value Increase" by BeatingBetting (licensed under CC BY 2.0)
“Bitcoin Value Increase” by BeatingBetting (licensed under CC BY 2.0)

Key Takeaways:

  • Tesla CEO Elon Musk believes U.S regulators should not regulate cryptocurrencies.
  • The outspoken digital currency loyalist was speaking at Code Conference in Beverly Hills.
  • Bitcoin prices still struggle to break above $43k resistance.

NEW DELHI (CoinChapter.com) — One of cryptocurrency’s most vocal supporters, Tesla CEO Elon Musk, reiterated his support for digital assets. Speaking at the Code Conference in California, the dogefather said governments couldn’t regulate the cryptocurrency market, but they can slow down its progress.

Mr. Musk further advised that the U.S regulators should not seek to bind digital assets down. The SpaceX owner’s statement comes when regulators in the U.S and around the world are seeking to regulate the crypto market. Governments perceive cryptocurrencies as a threat to their control over financial systems.

Meanwhile, Bitcoin prices languish below the $43k mark, even though the flagship cryptocurrency gained 4.7% between the day’s high ($42,823) and low ($40,886) levels. Bitcoin forms a major chunk of the crypto market, with current dominance at 42.30%, and has often reacted to comments and tweets from the Tesla CEO.

Let Cryptocurrencies Fly, Says Elon Musk

Elon Musk’s advice to the U.S regulators was in response to a question from New York Times columnist Kara Swisher, in which she asked if the government should be involved in regulating the crypto space.

Also Read: Ethereum struggles below $3K as China crackdown shuts 4th largest ETH mining pool.

In early 2021, Mr. Musk’s company Tesla announced it was ready to accept Bitcoin payments for its electric cars. However, the tech billionaire later did a 180, citing Bitcoin’s impact on the environment. In detail, Bitcoin mining consumes humongous amounts of electricity.

Tesla’s turnaround on its decision was one of the reasons behind the infamous May 19 crypto market collapse.

Elon Musk further said he believes cryptocurrencies would reduce errors and streamline the traditional financial systems.

The Tesla boss also commented on China’s latest crackdown on cryptocurrency trading and mining, saying the measures were likely due to the severe energy crisis that the country is facing.

A lot of South China right now is having random power outages, because the power demand is higher than expected. Crypto mining might be playing a role in that

Elon Musk on China’s crypto crackdown.

However, the entrepreneur added that the decentralized nature of cryptocurrencies might also be a reason behind China’s decision.

Earlier in the conference, U.S Securities and Exchange Commission chairperson Gary Gansler stated it is possible to consider cryptocurrencies as securities. Hence, digital currencies should be subject to regulations.

Elon Musk has become famous for his tweets, which often result in massive price movements for cryptocurrencies like Shiba Inu (SHIB), Dogecoin (DOGE), and even BTC.

In other news, El Salvador’s President Bukele announced the country is taking its first steps towards Bitcoin mining. President Bukele shared a video on Twitter that shows the country has imported crypto mining equipment and commenced mining operations.

Bitcoin Price Charts

In a relief to Bitcoin bulls, the support near $40.7k stands strong even after repeated testing by BTC. After falling 7.2% (from Monday’s high of $44,605 to Tuesday’s low of $41,353) this week, Bitcoin registered its first green candle on the daily charts. However, it seems BTC’s recovery would likely be choppy before a sustained bull run begins.

Recommended: Bitcoin Mayer Multiple Indicator sparks huge rebound hopes as BTC reclaims $42K.

BTC seems to be consolidating near its immediate support. Moreover, falling below the $40.7k support level would lead to Bitcoin testing support near $40,000 or even a fall to $38k levels before recovering due to risk-offs and panic selling.

BTC continues to test support near the $40.7k level. Source: BTCUSD on Tradingview.com
BTC continues to test support near the $40.7k level. Source: BTCUSD on Tradingview.com

On the other hand, BTC has failed to hold above resistance at $43,791 after falling below it on Sep 24. At the same time, 50-Day (Yellow) and 200-Day (Green) moving averages act as resistance at $46,847 and $45,564, respectively. For Bitcoin to target these resistances, bulls must hold above the support at $40.7k.

Trend-based momentum oscillator MACD is still bearish for Bitcoin, but the bars on its histogram are slowly moving upwards. However, given the weakness of Bitcoin’s bullish momentum, it is unlikely that the MACD line (difference of 12-day and 26-day EMA) would soon move above its signal line (9-Day EMA of MACD).

MACD continues to be bearish for Bitcoin. Source: BTCUSD on Tradingview.com
MACD continues to be bearish for Bitcoin. Source: BTCUSD on Tradingview.com

For MACD to chart a bullish crossover (MACD line moving above MACD signal line), bulls must breach immediate resistance and consolidate above it. The relative strength index is neutral for BTC, clocking a value of 39.48. The RSI trendline seems to be moving horizontally for now.

At the time of writing, BTC was trading at $42,294, up 0.31% on the day.

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