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SEC Chairman: Bitcoin [BTC] is a replacement for sovereign currencies

Priya

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SEC Chairman: Bitcoin [BTC] is a replacement for sovereign currencies
Source: Unsplash

Jay Clayton, the Chairman of Securities and Exchange Commission [SEC], spoke about the reason behind why Bitcoin is not classified as a security, in an interview with CNBC. He also spoke about the much-awaited Bitcoin ETF and the pre-requisites for its approval.

Clayton started by speaking about the areas wherein the investors are being taken advantage of and the markets the SEC finds a need to act on. According to the Chairman, one of the areas is the Initial Coin Offering [IOC]’s market. The ICOs have been the key focus of the regulators since the beginning of the year with several being cracked down such as EtherDelta, and Paragon Inc.

He also spoke about whether ICOs are definitely a security and about the exemptions. The Chairman began by saying that the technology behind cryptocurrencies, i.e., the distributed ledger technology has an “incredible promise” and that it can drive efficiencies in not just the financial markets but also various other markets.



Clayton further stated that the area in the financial markets wherein the distributed technology is prominent is the cryptocurrency market. He went on to say:

“These are replacements for sovereign currencies, replace the dollar, the yen, the euro with Bitcoin. That type of currency is not a security. Let me turn to what’s a security. A token, a digital asset, where I give you my money and you go off and make a venture, […] and in return […] you say […] I’m going to give you a return or you can get a return in the secondary market by selling your token to somebody.”

He further spoke about the Bitcoin ETF, which has been so far rejected by the commission for various reasons including market manipulation. Clayton stated that the Division of Investment Management has been “very clear” with the cryptocurrency space regarding the pre-requisites for the approval of an asset class product. He added that one of those pre-requisites is the pricing that investors can rely on and asset verification. Clayton went on to say:

“those hurdles are the hurdles that we think the main street investor expects if they’re going to invest in a product. I understand that there’s a great deal of discussion about these crypto assets. But again, we’re not gonna, we’re not gonna relax our wounds based on the level of discussion, we need to know that the pricing”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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