Elon Musk pumps $DOGE. Pennsylvania introduced bill for ‘BTC reserve’

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Over the past seven days, we have seen multiple existing and disturbing news that seem to have a big impact on the crypto industry in the future. Let’s review them in more detail to stay up to date in the web3 industry 👇

quick weekly news

Elon Musk and Vivek Ramaswamy to slash gov’t with ‘DOGE’

On November 13th, Elon Musk on Twitter shared a statement from the new President-elect Donald J. Trump, appointing Elon and Vivek Ramaswamy to the new government organization called the Department of Government Efficiency. It is designed to “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” according to the report’s content. The organization will be advising the 47th President of the US Trump regarding structural reforms within the government and ways of optimizing the expenses for large US bureaucracy machines with a more fresh, “entrepreneurial” approach.

The abbreviation of the Department of Government Efficiency (DOGE) has attracted significant attention among crypto traders, causing the biggest in the space memecoin previously promoted by Elon multiple times, $DOGE, to surge by over 15% in a moment after Musk announced it.

Source: GoodCrypto

Notably, after the election of Donald Trump as the 47th president, $DOGE has grown rapidly since Nov 6th, when the results were announced, mostly appealing to the rising influence of the $DOGE coin supporter, Elon Musk whose relations with the Donald Trump has become much closer since Musk reinstated Trump’s X account in November 2022. It seems like the Dogecoin market was laying out the correlation between Musk’s potential growth of popularity and awareness, expecting that the next Musk Dogecoin promotions are likely to be more broader and impactful.

Pennsylvanian lawmakers introduce bill for ‘strategic Bitcoin reserve’

On November 13, Pennsylvanian lawmakers introduced legislation in the US House of Representatives to enable its treasury to hold some of its reserves in Bitcoin. A Republican representative, Mike Cabell said that he proposed this bill as a hedge tool to “offer stability in uncertain economic times.”

According to the proposed bill, Pennsylvania will be able to invest up to 10% of the State General Fund and the Rainy Day Fund in Bitcoins, which are equivalent to $9.7B and $7B respectively. The Pennsylvania representatives were appealing this proposal to investment firms like BlackRock and Fidelity which use Bitcoin as a tool as a “shield for their portfolios from economic volatility,” suggesting implementing this strategy now in the government financial strategy.

It is also worth noting to mention the recent Pennsylvania House legislation in October this year to establish a regulatory framework for protecting self-custody and crypto payments in its State. Such a move can be a robust precedent for the future adoption of Bitcoin in the US not only on the national but also the state levels of the US government.

Trump Names Former SEC Chair Jay Clayton to DOJ Office

Talking about the future of the national level of crypto adoption, President-elect Donald Trump appointed former SEC Chair Jay Clayton to the Department of Justice office, the same department that has prosecuted SBF and has been making regarding the recent XRP lawsuit case.

Jay Clayton is a former chairperson of the Security and Exchange Commission (SEC) and is widely known for claiming that the most initial coin offerings (ICOs) were securities, a view of which later was echoed by his successor and current SEC Chair, Gary Gensler. Furthermore, one of his latest actions as a chairman of the SEC was signing off the lawsuit against Ripple Labs which has been recently ended by the U.S. District Judge Analisa Torres in turn of Ripple, forcing the company to pay only $125M civil penalty instead of the SEC’s demand for over $2B.

However, a little later the SEC launched another lawsuit campaign against Ripple Labs as it seemed to be unsatisfied with the U.S. District Judge’s decision. Jay Clayton’s new appointment may reinforce the SEC to continue its policy against crypto if no changes in the SEC leadership are made.

18 US states file lawsuit against SEC and Gary Gensler

Eighteen US states have already filed a lawsuit against the current SEC chairman, Gary Gensler, accusing him of “gross government overreach” towards the crypto industry.

“…..without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions,” said they in their complaint. According to the Blockchain Association, the SEC enforcement actions towards the crypto companies cost them over $426M since Gary Gensler stepped into the role in 2021.

Such events come in the contest of the recent Donald Trump claims to fie the currency SEC chairman and replace him with a more crypto-friendly SEC head when Donald enters the office. As of now, the potential candidates for a new head of SEC, according to some rumors in the crypto community are SEC Commissioner Mark Uyeda who multiple times criticized the current chairman for its policy on crypto, and Dan Gallagher — Robinhood’s chief legal, and compliance and corporate affairs officer, who has been already working in SEC in far 2011-2015.

what is a momentum oscillator?

A momentum indicator is a technical analysis (TA) tool that compares the most recent price to a previously determined price, measuring the speed of price changes. It is designed to help traders better assess the strength or velocity of the current price movement.

Although it is classified as an oscillator-type indicator, similar to RSI or MACD, it is an unbounded indicator, meaning its signals have infinite amplitude at any point in time. This is why it is often used in combination with bounded indicators, such as the RSI or Stochastic Oscillator, to discover the true value of an asset compared to its current price.

How to Read the Indicator? 🤔

🔸 If MOM (momentum) makes a new high, it is very likely that the price will also reach a new high.

🔸 Conversely, if MOM makes a new low, we can expect the price to make a new low as well.

🔸 If the price forms a lower low (LL) while MOM forms higher lows, it indicates a bullish divergence.

🔸 On the other hand, if the price makes a higher high (HH) but MOM shows a lower high, it signals a bearish divergence.

Want to learn more in detail about the MOM indicator? 📈 Check out our comprehensive MOM oscillator review 👇

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