Bitcoin and Ethereum down slightly despite EU voting against PoW ban

Bitcoin and Ethereum fell for a fifth day as the ongoing war in Ukraine offset news yesterday the European Union voted against effectively banning crypto mining on environmental grounds.

The largest coin by market cap fell by 1.03% to US$38,375, flirting yet again with the key support level of $38,000. Ethereum was down 1.98% at US$2,527.

An European Parliament committee yesterday rejected a move to limit the use of cryptocurrencies powered by an energy-intensive computing process known as proof-of-work across the 27 member states. 

According to Naeem Aslam, a market analyst at AvaTrade, the decision shows “more and more regulators are finally understanding the power of Bitcoin”.

“This is clearly a massive positive outcome for Bitcoin and for the entire cryptocurrency space, but traders haven’t picked up on this yet,” he said. Bulls are “really struggling to break the current bearish action”.

“The bitcoin price continues to threaten the US$38,000 level, and traders are hoping that the price will stay above this price point as that will increase the odds for Bitcoin to break above its 50-day SMA on the daily time frame, which is the immediate resistance.”

Aslam added traders will be watching this week’s Fed meeting, as an “increase in the interest rate is likely to push the dollar index higher.”

“No matter how much interest rate hike there will be, inflation is likely to stay here for the rest of the year, which should help Bitcoin price.”

In other altcoins, Terra was up 1.69% to US$91.97, Cardano was down 2.36% to US$0.7883 and Solana was down 1.87% to US$79.19.