Bitcoin has just rallied to a new all-time high at just below $67,000 per coin. Over the last month, BTC has gained more than 50% in value and historically Bitcoin has been an indicator that problems in the stock market could arise.
In the world of politics, there aren’t a whole lot of fans of Bitcoin. Former President Trump called out the cryptocurrency for being a ‘fraudulent scam’ and repeatedly attacked the concept of cryptocurrency investing.
In recent weeks, Biden’s administration along with several Democratic leaders in congress have tried to squeeze cryptocurrency legislation into the infrastructure bill. There would be new rules and restrictions for crypto exchanges and investors.
Biden believes that cryptocurrency is a major section of the economy where tax evasion occurs. He has instructed the U.S. Treasury to create a new rule that would require more transparency in cryptocurrency transactions.
The recent Bitcoin rally could suggest that U.S. stock market investors are looking for an alternative route to invest their money. With a debt crisis temporarily delayed and a supply chain that has been on the edge of collapse, there’s reason to believe that the U.S. markets could see major declines in the near future.
Investors may believe that cryptocurrency investments like Bitcoin could be safe in the short-term until there is more certainty in the future of the U.S. stock markets. There’s no limits to Bitcoin’s growth potential at this moment in time, but the possibility of a few restrictions being slapped onto cryptocurrencies like Bitcoin could have a major impact on future price growth.