AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
On Tuesday, the broader crypto market took a plunge alongside major U.S. stock indices after the U.S. Federal Reserve hinted at the possibility of reducing its balance sheet at an accelerated pace. BTC dropped by 3% after the news first broke, but has since moved to consolidate its losses near the $45k handle. A key bearish trendline with an upper bound near the $46.6k level is taking shape on BTC's hourly chart. The largest crypto by market cap must stay above the $45k support to prevent any further downside corrections. On a separate but related note, analyst Alex Thorn observes that, for the first time in history, a BTC bull run has not been accompanied by a corresponding spike in transaction fees. He attributes the current low-fee environment to the high adoption rates of Segwit, as well as the development of the Lightning Network.
The U.S. House of Representatives are mulling over the introduction of legislation that aims to shield the U.S. financial system and investors from exposure to excessive risk due to El Salvador's rapid adoption of BTC as legal tender. The bi-partisan House bill, titled the Accountability for Cryptocurrency in El Salvador Act, will accompany another senate bill of a similar name and nature that was introduced in February (and that has recently passed committee) to safeguard the U.S. financial system against El Salvador's "careless gamble that is destabilizing the country".