EU takes a less harsh stance on cryptos

One would think that the EU has more important things to worry about with Russian fighter jets bombing a military base just 20 kilometers from Poland, a country that is part of their coalition.  However the European Union found time to reject a proposed regulation that would have effectively outlawed Bitcoin across the EU, but has established new draft restrictions to safeguard consumers and make mining more sustainable.

On Monday, the European Parliament's Economic and Monetary Affairs Committee voted on the proposed Markets in Crypto Assets (MiCA) framework, the EU's legislation to manage digital assets.

This is good news for Bitcoin as it avoided an outright ban or strict limits on trading of cryptos mined using PoW algorithms.

Price is reflecting this decision with Bitcoin currently up off the lows, and as of 4:00 PM, EDT is trading around $38,770. Bitcoin effectively held the 78% retracement area at $37,500 for the third time in a row, signaling that this is an area of support and will continue to do so if we are indeed at the start of a rally.

However, it is too early to make that determination but the vote in the EU today definitely makes that a possibility. We will only know for sure that a rally is underway when we break above the critical resistance at roughly $44,275. Until we get a break above that area, we still see the markets as being in an accumulation period like the one we witnessed in May – July of 2021.