Welcome to Extreme Investor Network, where we bring you the latest news and insights on the stock market, trading, cryptocurrencies, and more. In this blog post, we will dive into the recent price action of Bitcoin (BTC) and the latest developments in the U.S. Senate regarding crypto regulations.
Bitcoin (BTC) Price Action May, 12 – May, 17 2024:
The price of Bitcoin has seen a slight decline from previous estimates exceeding $50,000. This drop has been attributed to declining hashrate after the halving event, where the Coinbase reward miners receive per block found was cut in half. As unprofitable miners exit the network, we have seen a shift in the market dynamics.
JPMorgan’s analysts have noted a delayed exit, partially due to the launch of the Runes protocol, a new token creation method within the Bitcoin network. This triggered a temporary spike in transaction fees, offsetting the halving’s impact. However, the boost provided by Runes was short-lived, as transaction fee revenue has since fallen dramatically. With power consumption in the network falling more than its hashrate, inefficient miners have exited.
JPMorgan’s report suggests limited upside for Bitcoin in the near future due to several headwinds, including a lack of positive catalysts and the fading interest of retail crypto investors.
U.S. Senate Votes to Overturn SEC Rule on Crypto:
In a significant move, lawmakers in the United States Senate voted to pass a joint resolution, H.J.Res. 109, aiming to overturn a Securities and Exchange Commission (SEC) rule that affects financial institutions working with cryptocurrency firms. This resolution seeks to nullify Staff Accounting Bulletin No. 121, which requires banks to keep customers’ digital assets on their balance sheets and maintain sufficient capital against them.
The resolution has already cleared the U.S. House of Representatives and now awaits a potential veto from President Joe Biden. President Biden has expressed concerns about investor protection and the stability of the broader financial system. If the President does veto the bill, it would require a two-thirds majority in both houses of Congress to override the veto.
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