Concern is mounting in the crypto community as leaked information suggests a possible U.S. executive order on artificial intelligence that could impact Bitcoin and cryptocurrency activities.
As a U.S. government shutdown looms, the Bitcoin price may face increased volatility.
The Bitcoin price remains below the $30,000 mark, partly due to concerns over a perceived covert campaign against cryptocurrencies by the U.S. government. Recent leaks suggest that President Joe Biden may soon issue an executive order pertaining to artificial intelligence, sparking concerns within the crypto community.
Alexander Grieve, Head of Government Affairs at Paradigm, a Bitcoin and crypto-focused investment firm, expressed these concerns on Twitter, now X. He referenced a Semafor report, citing anonymous sources, which states that major tech companies like Microsoft, Google, and Amazon may be compelled to disclose customer purchases of computing resources exceeding a certain threshold.
One major concern is the report’s characterization of computing power as a “national resource.” It notes that activities such as Bitcoin mining, video game development, and AI model processing, such as ChatGPT, all demand substantial computational resources.
Bitcoin mining, which relies on miners using high-powered computers to validate transactions and earn new BTC, consumes more electricity annually than in some smaller nations. Following China’s ban on Bitcoin mining in 2021, the United States has become the leading host for Bitcoin miners worldwide.
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“At present, the White House perceives tech jobs, developer talent, and energy as limited national assets, potentially resulting in a zero-sum scenario, particularly in relation to the crypto sector,” suggested Grieve. He speculated that bitcoin mining might be perceived as diverting power resources from households and that involvement in crypto could draw development talent away from what is considered “legitimate” applications.”
Bitcoin Price Swings And US Government Shutdown
As the US government shutdown, scheduled on October 1 approaches closer, analysts are expecting a similar price surge for Bitcoin as during the regional banking crisis earlier this year in March 2023. With three small-to-mid-sized US banks failing during that period, the BTC price jumped roughly 25 percent in a month’s time.
Bitcoin received a price boost on Thursday with the BTC price shooting past $27,000 once again. Now, if the BTC price replicates a similar 25 percent surge, it can reach $31,000.
A potential U.S. government shutdown could trigger a ripple effect across the economy, impacting various sectors. Federal contractors, spanning from prominent entities like Elon Musk’s SpaceX to local federal building janitorial services, are preparing for a substantial loss of revenue, estimating up to $1.9 billion per day if funding is interrupted starting October 1.
This economic setback would occur against the backdrop of existing market concerns, including anxieties about elevated interest rates, increasing oil prices, and ongoing labor strikes, adding to the pressures already bearing down on financial markets. Also, the surge in the US Dollar Index could be a potential threat to the Bitcoin price.
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