The price of VeChain (VET / USD) fell back on Thursday as regulatory concerns mounted ahead of the latest US inflation figures the price of the coin fell to $ 0.1135, more than 9% from the point highest today. Other cryptocurrencies such as Bitcoin and Ether have also reduced some of the gains made on Wednesday.
VET price chart
Cryptocurrency regulations
The prices of VeChain and other digital currencies fell back as investors continued to focus on regulations, especially in the United States.
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This is after it emerged that JGB paid around $ 1 million to Russian hackers who compromised their systems last week. This became the largest ransom paid to hackers after Colonial Pipeline paid out $ 4 million last month. JGB, the largest meatpacking company in the United States, paid this ransom with Bitcoin.
The voices calling for more regulations are getting louder. A few months ago, Janet Yellen, the current Secretary of the Treasury, said that the government should take more steps to reduce cryptocurrencies. And on Wednesday, Senator Elizabeth Warren called on Congress and other regulators to toughen regulations. She said:
“Cryptocurrency has created opportunities to scam investors, help criminals and make the climate crisis worse. The threats posted by cryptocurrencies show that Congress and federal regulators cannot continue to hide themselves, in the hope that cryptocurrencies will disappear. it’s time to tackle these issues head-on.
Last month, a Wall Street Journal columnist argued that the government should ban cryptocurrencies to reduce ransomware. He argued that cryptocurrencies did not create value for anyone other than speculators.
While VeChain has not been singled out, banning or implementing further measures to regulate the industry would affect it. For one thing, cryptocurrencies are known for their close correlation. In other words, most altcoins fall when Bitcoin declines and vice versa.
Inflation data ahead
Looking ahead, VeChain price will react to the latest US inflation data coming out during the US session. Analysts expect the data to show that the headline CPI rose from 4.2% in April to 4.7% in May. Similarly, the core CPI is expected to have risen from 2.3% in March to 3.2% in May.
These are important numbers as they have an impact on interest rates. Ideally, if inflation is substantially higher than estimates, it means that the Federal Reserve could adjust faster than expected. In particular, these numbers will come at the same time as the initial jobless claim numbers.
VeChain price forecast
The daily chart shows that the VET price has been in a tight range in recent weeks. The price is below $ 0.1470, which was the cleavage of the double top pattern that occurred a few months ago. It has also moved below the 50-day moving average and was supported by the 200-day EMA. Also, the coin appears to be forming a bearish flag pattern. Therefore, there is a possibility that it will descend in the next sessions.
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