John Bollinger, Bitcoin’s veteran trader, believes the cryptocurrency’s resilience to Janet Yellen’s siren song is the most interesting thing about it at the moment.
Janet Yellen is the former Federal Reserve Chair and the incoming Treasury secretary of President Biden’s administration. During her confirmation hearing on January 19, 2021, she made strong comments as being full of illicit activities. She mentioned the cryptocurrency’s use in financing terrorist activities due to the limited regulation. The new Treasury secretary recommended that the administration works on curtailing the usage of digital currencies and ensure that money laundering does not occur through cryptocurrencies.
Bitcoin Massively Falls After Yellen’s Comments
In the following weeks after Janet Yellen’s siren song, Bitcoin prices dropped by over 20 percent, hitting their lowest in three weeks. Before its downfall, the world’s most popular cryptocurrency was trading at $42,000 as of January 8, 2021. The fall is positively linked to Yellen’s comments that cited fears of tighter US regulation among traders.
Yellen later came forward to recognize the benefits of Bitcoin and other cryptocurrencies. She acknowledged the breakthrough Bitcoin and others have made in enabling financial transactions across the globe and the potential effects on the US financial systems. Mainstream media did not pick up these comments as much as the anti-crypto ones. However, the positive remarks significantly countered the effects of her earlier sentiments and slightly toned-down traders’ fear of a regulatory clampdown.
Bitcoin’s Resilience to Janet Yellen’s Siren Song
John Bollinger commends Bitcoin’s resilience to Yellen’s comments. Despite the significant fall, Bitcoin rose again to nearly $35,000 recently. It, however, fell again to $30,847 the following day. The cryptocurrency has slightly recovered and is currently managing to trade above the lower Bollinger band.
Bollinger believes that Bitcoin is manifesting the “most important facets of technical analysis” by managing to resist Janet Yellen’s siren song. A market’s reaction to news significantly shapes the price movements of a product in the financial market. Despite its fall, Bitcoin is managing quite well, considering how fast mainstream media picked up Yellen’s comments.