Veteran trader John Bollinger has shared his most recent take on Bitcoin’s performance, taking note of the cryptocurrency’s resilience to Janet Yellen’s “siren song”:
The most interesting thing about Bitcoin at the moment is its ability to resist Yellen's siren song.
He is obviously referring to the anti-crypto comments made by America’s first female Treasury secretary last week.
As reported by U.Today, Yellen mentioned that cryptocurrencies were “a particular concern” when it comes to terrorist financing during her Jan. 19 confirmation hearing in the U.S. Senate. Bitcoin shed over 20 percent in the following few days.
Later, however, the former Federal Reserve chair also spoke about the benefits that Bitcoin and other digital assets can offer to the U.S. financial systems:
Bitcoin and other digital and cryptocurrencies are providing financial transactions around the globe. Like many technological developments, this offers potential benefits for the U.S. and our allies.
Her favorable remarks attracted far less attention in the mainstream media, but they also helped to assuage fears about an impleading regulatory clampdown.
On Jan. 25, the Senate overwhelmingly approved Yellen’s historic nomination in an 84-15 vote.
Holding above the lower Bollinger band
Bitcoin has been extremely choppy over the past few days. Yesterday, the cryptocurrency soared to almost $35,000, but the rally quickly lost its steam. Bitcoin retraced back to as low as $30,847 on the Bitstamp exchange the following day.
At press time, it is trading above the lower Bollinger band on the daily chart after a slight recovery.