- Mark Carney, a known Bitcoin skeptic, is now Canada’s Prime Minister, raising concerns about the future of crypto regulations.
- Trump’s Bitcoin reserve announcement triggered a sharp BTC drop, with traders eyeing key support levels.
Mark Carney’s selection as Canada’s Prime Minister drew attention to his long history of opposition to Bitcoin. A former Bank of Canada and Bank of England governor, Carney has been a long-time critic of Bitcoin.
Introducing our new Liberal Leader, Mark Carney! pic.twitter.com/DgUt26aW9k
— Liberal Party (@liberal_party) March 9, 2025
His position regarding cryptocurrencies was evident in 2018 when he spoke negatively about Bitcoin’s fixed supply and referred to it as a speculative asset instead of a solid store of value.
During his time in office as a central banker, Carney promoted central bank digital currencies (CBDCs), arguing that they could be used to promote financial inclusion while enhancing regulatory oversight.
His tie-up with Stripe, a payment processor which went crypto in the past few years, is casting doubts over whether his stance has shifted. However, given his history of dismissing Bitcoin as impractical, the market remains wary of potential policy shifts.
Impact on Crypto Regulation in Canada
Carney’s position regarding Bitcoin can lead to increased supervision of crypto exchanges and transactions. His previous comments suggest that he may support stricter regulations to regulate volatility as well as fraud in the cryptocurrency market.
Unlike his predecessor, Justin Trudeau, who opposed pro-crypto policies but did not aggressively regulate the sector, Carney’s tenure can potentially mark the beginning of new restrictions.
If Canada follows the regulatory trajectory of other top economies, it will likely adopt the same kind of measures as in Europe and the U.S. This could be in the form of tightened KYC requirements, limiting the ability to make anonymous purchases, and possibly digital asset taxes.
But Canada’s growing crypto community will most likely resist such measures, advocating for an approach that favors innovation while balancing regulatory concerns.
Despite Carney’s skepticism, Canada remains a key player in the Bitcoin mining industry due to its cheap energy resources. Any restrictions could interfere with mining operations and make companies look for more favorable crypto regulatory climates.
Carney Slams U.S. Tariffs, Vows Strong Countermeasures
Carney’s biggest challenge while in office as prime minister is responding to American President Donald Trump’s most recent actions in imposing tariffs. The Americans imposed taxes on Canadian exports, which strained the relationship between the countries.
Carney denounced such tariffs as a blow to Canadian families and industries. He pledged to implement strong countermeasures to protect the economy from external pressures.
Bitcoin Drops Over 12% As Market Reacts to U.S. Reserve Strategy
At the same time, the U.S. government’s new Bitcoin reserve plan has raised market concerns. As we reported in our previous report, the Trump executive order allows the government to utilize Bitcoin seized in crime cases instead of procuring it in the open market.
While others viewed this as a milestone towards mainstream adoption, the market reacted negatively, with Bitcoin’s price declining by over 12% in the weekly chart, from $90,400 to $82,041.
[mcrypto id=”12344″]The crypto market sentiment turned bearish, with many traders warning of more declines. BitMEX co-founder Arthur Hayes expressed the view that Bitcoin could fall to $75,000 next.
An ugly start to the week. Looks like $BTC will retest $78k. If it fails, $75k is next in the crosshairs. There are a lot of options OI struck $70-$75k, if we get into that range it will be violent. pic.twitter.com/q4cq0rthGJ
— Arthur Hayes (@CryptoHayes) March 9, 2025
Another trader, CrypNuevo, said Bitcoin is in a strong cycle but warned of a potentially deeper correction in the event of a breakthrough in critical support levels.
Bitcoin dominance remains high, showing altcoins are under pressure as funds flow out of risk assets. Traders are closely monitoring the $77,000 level, which is the most important support level. Staying above this level can trigger a relief bounce while breaking below it can trigger more liquidations.
