Bitcoin Steadies Ahead of Fed Rate Decision as Industry Heads Write to EPA

Updated:

Top executives in the cryptocurrency space have written to the US Environmental Protection Agency (EPA) to address falsities and preconceived notions surrounding Bitcoin (BTC) mining.

Not surprisingly, the letter was authored by MicroStrategy CEO Michael Saylor, along with Castle Island Ventures partner Nic Carter and Core Scientific co-founder Darin Feinstein.

This address comes after some members of the US Congress called on the EPA “to ensure cryptocurrency mining facilities are not violating foundational environmental statutes like the Clean Air Act and Clean Water Act.”

The letter, a lengthy 11-page document, was written to dismiss “misconceptions” about Bitcoin mining processes and highlight some of the defamatory statements politicians made on the matter.

The letter disputed claims that Bitcoin mining processes contributed significantly to greenhouse gas emissions, a claim the letter labeled “deeply misleading.” The letter explained that data centers used by BTC miners were similar to those used by tech companies like Google and Amazon. The document also highlighted that research from the Bitcoin Mining Council revealed that 58.4% of all energy used to mine Bitcoin comes from sustainable sources.

Dispelling the false claims that suggest that digital assets come with environmental risks and pollution, the letter detailed:

“There are no pollutants, including CO2, released by digital asset mining. Bitcoin miners have no emissions whatsoever…Digital asset miners simply buy electricity that is made available to them on the open market, just the same as any industrial buyer.”

Key Bitcoin Levels to Watch — May 3

Bitcoin has fallen into a sideways pattern over the past few hours as traders retire to the sidelines ahead of the US Fed’s rate decision tomorrow.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

Opinions are divided across the markets as some expect the bearish momentum to resume once the institution announces its decision. However, others argue that the potential downside has already been priced-in, meaning that a bullish reversal could be triggered by the decision announcement.

Some argue that a 270 basis points rate hike, spread across several months until early 2023, has already been priced-in.

That said, a breach of the $38,000 low should confirm a bearish continuation in the coming hours. However, a rebound above the 4-hour 100 EMA at $39,650 should kickstart a rebound back to $41,000 and above.

Meanwhile, my resistance levels are at $39,000, $40,000, and $41,000, and my key support levels are at $37,000, $36,000, and $35,000.

Total Market Capitalization: $1.73 trillion

Bitcoin Market Capitalization: $729.2 billion

Bitcoin Dominance: 42.1%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.