Yesterday’s announcement by Crypto Czar David Sacks of the development of a U.S. sovereign wealth fund, has investors wondering if Bitcoin will be included.
Bitcoin likely to play a role in US
Tuesday’s announcement by crypto czar David Sacks that a U.S. Sovereign Wealth Fund would be created, has many wondering if Bitcoin will play a role in this.
Donald Trump stated before his election victory that he would create a strategic Bitcoin reserve when President. This hasn’t so far happened, and of course it is probably far too early in his presidency for such a fund to be up and running.
Therefore, a Sovereign Wealth Fund could be an earlier opportunity for the US to start buying at least some Bitcoin in an effort to try and get ahead of other nation states in what could eventually turn into a race to accumulate.
Sacks has said that one of the first priorities is stablecoins, and that digital asset regulation could be turned into legislation that can be moved through congress in the next six months.
The crypto czar said that the US was entering a “golden age in digital assets”, stating that Bitcoin was “the first of its kind” and that it was an “excellent store of value”.
Bitcoin still in general sideways trend
Source: TradingView
Meanwhile, after the recent spate of very high volatility, Bitcoin is still generally following a downtrend, but within a range of sideways movement which began in November of last year.
There is some horizontal support at the current level, and this may allow the price to bounce from here. If the price does continue to fall, further support can be found at $95,000 and at $92,000. Just below this is the major ascending trendline, which would probably act as a large ditch support.
Continuation of the uptrend more likely
Source: TradingView
Zooming right out into the weekly time frame, it can be seen that price action is potentially forming some kind of structure above the ascending trendline. It’s still too early to see what type of potential pattern this could be, and whether it will be bullish or bearish.
A bullish pattern would enable the price to take the next step upward, while a potential M pattern, seen in the formation of the candle bodies, could take the price back down to the top of the previous bull flag.
Given that we are now arguably in the final stage of the bull run, which could come to an end towards the back end of this year, it would be more likely to see a continuation of the uptrend.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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