Bitcoin's resilience amid price drops indicates strengthening support at the $65,000 level.
Despite testing the $65,000 support on June 14, Bitcoin (BTC) hasn't closed below $66,000 since May 17. While BTC was unable to break above the $72,000 resistance during this four-week period, some events have improved regulatory sentiment and highlighted how little room the U.S. central bank has left to maneuver without triggering inflation. Favorable market conditions and resilience in Bitcoin derivatives metrics indicate that the downside is extremely limited.
On May 16, U.S. lawmakers passed a Congressional Review Act to explore a Securities and Exchange Commission (SEC) rule that requires listed companies, including banks, to record crypto assets as both assets and liabilities on the balance sheet. According to Senator Cynthia Lummis, this vote was a milestone as it was the first “standalone crypto legislation” passed by Congress.
The resolution was eventually vetoed by President Joe Biden, but the defiance from Democrats demonstrates the “growing number” and “rising influence of crypto participants" in U.S. politics, according to Craig Warmke, a Bitcoin Policy Institute fellow. While Biden’s veto presents a challenge, both chambers of Congress would need a two-thirds majority to overrule it.
