Crypto News Today: DOGE, Elon Musk, and Senator Elizabeth Warren

Key Insights:

• Senator Elizabeth Warren boasted further support for a bill targeting the US digital asset space.
• Dogecoin (DOGE) tumbled on Monday despite Billy Markus and Elon Musk hitting X (formerly Twitter).
• US regulatory scrutiny, SEC activity, and crypto-spot ETF-related news remain focal points.

Bitcoin Targets a Return to $42,000 Amidst Heightened Lawmaker Scrutiny

Bitcoin (BTC) slid by 5.81% on Monday. After a 0.11% gain on Sunday, BTC ended the session at $41,288. Significantly, BTC fell to a Monday session low of $40,211 before steading.

Several factors likely contribute to profit-taking. Increased US lawmaker scrutiny was a headwind for the digital asset space. Senator Elizabeth Warren kept the heat on the crypto space, announcing more support for the Digital Asset Anti-Money Laundering Act.

The Monday press release followed a Banking Committee hearing from Wednesday. The hearing featured Senator Warren and the CEOs from the most prominent US banks targeting the crypto space.

Senator Warren had this to say about the increasing support for the Act,

“The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks.”

Senator Warren added,

“I’m glad that five new senators are joining the fight to take action, including three members of the Banking Committee – our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”

The Digital Asset Anti-Money Laundering Act aims to address illicit finance risks stemming from cryptos by incorporating anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks across the digital asset space.

Other possible reasons include an impact analysis of the DOJ’s oversight of Binance and SEC preparations for the SEC-Binance case.

There were no significant BTC-spot ETF-related updates to shift investor attention away from Capitol Hill. However, Senator Warren and SEC Chair Gary Gensler could collaborate further and affect progress toward a crypto-spot ETF market.

Crypto Community Reacts to the Senator Warren Press Release

On Monday, amicus curiae John E. Deaton and Coinbase (COIN) CEO Brian Armstrong shared some Senator Warren statistics.

According to Tom Dunleavy, the Senator sponsored 36 bills in the 118th Congress (2023-24), none of which passed. The Senator had a similar record from the 114th Congress to the 117th Congress.

DOGE Hit $0.1075 Before Tumbling to $0.0909

Dogecoin (DOGE) slid by 7.35% on Monday, ending the session at $0.0945. In a particularly choppy session, DOGE struck a session high of $0.1075 before tumbling to a low of $0.0909.

Dogecoin founder Billy Markus and Elon Musk made the news following a tweet exchange. On Monday, Markus, a.k.a. Shibetoshi Nakamoto, goaded the crypto bears, saying,

“Oh no, crypto died, everything is dead, blah blah blah.”

Elon Musk seemingly understood the sarcasm, sending rolling-on-the-floor laughing emojis.”

This morning, DOGE was up 2.65% to $0.0970.

Technical Analysis

Bitcoin Analysis

BTC sat above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC return to $42,000 would support a break above the $42,900 resistance level to bring the $43,000 handle into play.

US regulatory activity, lawmaker chatter, and BTC-spot ETF-related news remain focal points.

However, a fall through the $41,585 support level would give the bears a run at the $40.800 support level.

The 14-Daily RSI reading, 59.50, suggests a BTC move to the $42,900 resistance level before entering overbought territory.

Ethereum Analysis

ETH held above the 50-day and 200-day EMAs, reaffirming bullish price signals.

An ETH move through the $2,300 resistance level would give the bulls a run at the Saturday high of $2,403.

However, a fall through the $2,200 handle would bring the $2,143 support level into play.

The 14-period Daily RSI at 57.73 indicates an ETH move to the $2,300 resistance level before entering overbought territory.