Important news on the horizon as US Senator Ted Cruz recently stated that he is “incredibly bullish” regarding Bitcoin sentiment.
Below, we see his opinion in detail and other news about the most popular crypto of all.
News for Bitcoin: Ted Cruz is on its side, let’s see why
As anticipated above, US Senator Ted Cruz said he is “incredibly optimistic about Bitcoin.”
Not only that, according to his statement, it appears that Cruz bought the digital asset in the midst of a general market downturn, and just yesterday, Bitcoin surpassed the $30,000 price point.
Furthermore, Cruz emphasized his belief that Bitcoin is firmly established as “the alpha in the crypto sphere.”
Specifically, we see that the token has surged in the past 24 hours, as it is still up more than 7.5% despite rebuilding toward the $29,000 mark.
As we know, the US senator’s name has been associated with the blockchain industry for more than a few periods. Specifically, it was when he proposed a requirement for Capitol Hill to accept cryptocurrencies.
In addition, the proposal he issued earlier this year would require vending machines and food service contractors to accept cryptocurrency payments. Not only that, Cruz also opposed the implementation of a digital currency developed by the Fed.
In all this, he introduced legislation in March that would prohibit the implementation of a CBDC, pointing to potential government uses of such a currency. In essence, Cruz issued a warning of the currency’s potential as a tool for government financial surveillance.
In any case, we see that Cruz may be right, as Bitcoin, in the past 24 hours, has not only surpassed the $30,000 price point, but also had a sharp increase in active addresses.
Specifically, CryptoQuant reported that Bitcoin’s active addresses have recently surpassed levels last seen in November 2021.
This automatically suggests an increase in demand for the cryptocurrency.
Ted Cruz’s legislation against the Fed: Bitcoin vs CBDC
As anticipated, in March Ted Cruz introduced legislation to prohibit the Federal Reserve from developing a direct-to-consumer central bank digital currency that could be used as a financial surveillance tool by the federal government.
Specifically, Cruz argues that as countries such as China develop CBDCs that omit the benefits and protections of cash, as well as the control and security of many existing digital cryptocurrencies, it is more important than ever to ensure that US digital currency policy protects financial privacy.
Moreover, the US senator goes on to point out that CBDCs that do not adhere to the three basic principles, could allow an entity like the Federal Reserve to mobilize into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely.
In essence, unlike decentralized digital currencies such as Bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized and authorized blockchain.
Hence, this CBDC model can not only centralize Americans’ financial information, leaving it vulnerable to attack, but could be used as a direct surveillance tool in Americans’ private transactions.
After introducing the legislation, Senator Cruz stated the following:
“The federal government does not have the authority to unilaterally establish a central bank currency. This bill goes a long way to making sure big government doesn’t try to centralize or control cryptocurrency and, instead, allows it to flourish in the United States. We should empower entrepreneurs, enable innovation and increase individual freedom, not stifle it.”
Focus on Bitcoin (BTC) price: highly volatile
In the past 24 hours, cryptocurrency market capitalization has seen net outflows of $10 billion and currently stands at $1.20 trillion, down 0.96% from $1.21 trillion.
Specifically, Bitcoin’s market cap rose 0.43% to $563.18 billion during this period. Specifically, in the last 24 hours BTC rose 0.1% to be trading at $29.008.
During the above period, Bitcoin’s volatility swept over $300 million following some rumors that the US government and cryptocurrency exchange Mt. Gox were selling the asset.
However, CryptoSlate Insight reported that the sharp price swings were due to an illiquid market. In addition, as anticipated above, Bitcoin briefly managed to rise above $30,000 yesterday, leading to euphoria over its bullish prospects, but shortly thereafter it plummeted.
This happened because many traders, convinced that the recovery was a sign of demand and a possible push beyond the resistance range, were confident that Bitcoin would offer a good rally, so they opted for leverage.
As a result, the above liquidations for Bitcoin have arrived.
