According to the Blockchain Association, Bitcoin investment and price will climb when the economy ‘comes around.’
Bitcoin (BTC) looks to be stabilizing in terms of volatility compared to previous months, with the flagship digital currency presently trading at $19,000 in October.
Kristin Smith, the executive director of Blockchain Association, spoke with CNBC’s Squawk Box on the cryptocurrency industry and Bitcoin’s recent price changes on October 21.
“As we start to see the economy come around, we’re going to see the investment in #bitcoin rise and subsequently the price,” says @KMSmithDC. “We could see legislation signed into law before the end of the year.” pic.twitter.com/0cNE67eFgh
— Squawk Box (@SquawkCNBC) October 21, 2022
Smith pointed out that Bitcoin has been relatively constant for a number of reasons. First, individual investors have mostly abandoned Bitcoin investment due to concerns about paying for petrol and groceries; “they don’t have the opportunity to put additional money aside to invest in Bitcoin at the present.”
She does, however, feel that current investors are holding out and are in it for the long haul.
“As the economy improves and individuals add more risk to their investment portfolios, we’ll see more investment in Bitcoin and, as a result, an increase in price.”
According to data gathered from CoinMarketCap, Bitcoin is presently trading at $18,952, down 1.13% in the last 24 hours and 4.11% in the past week, with a total market value of $363 billion.
Legislation governing cryptocurrency
Smith stated that Congress is currently working on legislation that would offer further regulation for the underlying digital commodities spot market, which would include the Bitcoin spot market.
The executive director stated that the measure had a “real probability of passing.” The chair and ranking member of the United States Senate Agriculture Committee submitted a revised draft of the Digital Commodities Consumer Protection Act before the end of the year (DCCPA) “This is a really reasonable structure for controlling centralized exchanges at the spot market,” she said.
Although there is still an unresolved problem about decentralization finance (DeFi), which operates differently from custodial exchanges.
“There’s a good probability that legislation will be passed into law before the end of the year,” she added.
The DCCPA, on the other hand, has lately come under fire from the crypto community, which has slammed it as damaging to DeFi when its draft language was made public.
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