Almost all major countries are in the middle of introducing regulations in the industry. Russia is considering between banning or regulating crypto, with the Bank of Russia pressing on the ban. Then we have India, where things look a little better as the crypto bill gets delayed again. Finally, we have the US, where there have been no rumors of the ban, but the uncertainty prevails of what is going to come. But even after all this, the regulatory uncertainty isn’t stopping crypto investors from buying more.
Why is there fear regarding regulation?
The two most concerning factors for investors are the stablecoin regulation and the security vs. coin debate in the US. There has been a lot of reports that Tether is being used to manipulate the price of Bitcoin, and it is being created out of the blue. This was also the reason that VanEck’s spot Bitcoin ETF was being rejected by the SEC. There are also reports that there will be an oversight, and regulations for digital assets will come.
All this fear did cause the market to become a little bearish, and the CME future’s contracts are also seeing a lowering premium. If the premium becomes low or even negative, then it shows that investors are not as bullish as they were before.
It’s not all bad
The data provided by various exchanges show that a lot of professional traders and investors are increasing their long positions. This was done by analyzing all important markets that are spot, futures, and perpetual. Exchnages like Binance, Huobi, and OKEx have been seeing more long positions from top traders despite the price of Bitcoin continuing to stay below $50K.
The regulatory pressure is surely taking a toll on the crypto space, and the recent China ban with more regulations has also been painful for the markets. It’s being seen that during the working hours of Asia market is more bearish than the US working hours where there is buying going on. It will take some time, but all this selling pressure seems temporary to me.
What are your thoughts as the regulatory uncertainty isn’t stopping crypto investors from buying more? And do you think this temporary bear market will soon die down? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.