Yellen’s ‘illicit funding’ criticism correct Bitcoin and altcoins

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Janet Yellen’s critical remarks on cryptocurrencies placed a damper on the broader market just when Ethereum’s price hit a fresh all-time peak.

On Tuesday, Ether (ETH) underwent a bullish breakout that pushed the stock to a new all-time high of $1,428.

Although the change could have been strategic, the fundamentals for Etheruem continue to improve as less than one month after the launch, ETH is now worth $3.8 billion locked on the Eth2 blockchain.

The dramatic price growth has obviously drawn the interest of pro traders, analyst Marcel Pechman warns that the rise of Ether to a new peak has also been followed by a strong spike in short-term positions.

ETH/USDT 4-hour chart. Source: TradingView

Ether’s break to a new peak has no effects on Bitcoin’s valuation, and it seems to have been negative remarks from the former U.S. Janet Yellen, president of the Federal Reserve, has had a negative impact on the wider economy today.

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Yellen, who was nominated as President-Elect Biden’s Treasury Secretary, said that cryptocurrencies are being used “mainly for illicit financing.” She made statements at a hearing with the Sentate Finance Committee and also proposed massive fiscal easing by urging Congress to “act big” when it comes to helping the US economy.

Institutions are still bullish

Daily cryptocurrency market performance. Source: Coin360

After today’s minor correction, institutional investors are already haunting Bitcoin’s long-term prospects. A recent prediction by the Vailshire Capital Management hedge fund called for a “imminent breakout” and PlanB, the maker of the common Stock-to-Flow model, forecast that the Bitcoin price could close to $48,000 a month.

Unlike the crypto economy, conventional stocks finished the day with intensity, as Yellen’s call for additional economic support is seen as favorable by Wall Street. S&P 500, Dow and NASDAQ both started the trade day off high after Yellen’s comments, closing 0.81 per cent, 0.38 per cent and 1.5 per cent respectively.

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BTC/USD daily chart. Source: Coin360

Given the pessimistic opinion shared by Yellen, promising advances for a variety of blockchain ventures have led to higher select altcoin values.

The price of Enjin (ENJ) rose by 71 percent after the project was legally approved for trading by the Japanese Virtual Currency Exchange Association (JVCEA). Apart from Ether (ETH), the best-performing top 20 coin over the past 24 hours was Bitcoin Cash (BCH), up 7.46 percent, and trading at $546.

The aggregate market cap for cryptocurrencies currently stands at $1,046 trillion and Bitcoin’s supremacy percentage is 65 percent.


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