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Bitcoin Under $ 10,000, Down 26.6% in 7 Days: What Caused Pullback?

Since July 10, the price of Bitcoin (BTC) has fallen from $ 13,200 to $ 9,684, with large exchange rates including Coinbase, recording a 26.6% decline within a seven-day period. Recent recall of Bitcoin is widely believed to be a technical factor pushed by sellers who took control of the market when dominant crypto activity went below the main support levels of $ 11,000 and $ 10,700.

BTC Price Visualization from Coin360

Alex Krüger, a global market analyst, suggested that the criticism of Bitcoin by US President Donald Trump and State Secretary Steve Mnuchin could have contributed to the fall:

"When the US government attacks bitcoin directly, It is used to support billions of dollars of illegal activity, based on thin air, and how they are concerned about their speculative nature, and the crypto echo chamber roars "it's probably a good time to short." There is nothing bullish in antagonizing the largest gorilla in the room, unfortunately most US politicians seem to be convinced that crypto is rich in money laundering and drug trafficking, which needs to be changed ̵

1; I bet people use Paypal or Venmo more than bitcoin to pay for illegal activities. Also, most criminals do not even know what monero is, but they all heard about the dollar. Unfortunately, the notion is drum facts. "

The change in emotion Around the crypt market as a result of President Trump and Secretary Mnuchin's remarks, as well as bearish technical indicators, are considered the most important factors behind Bitcoin's latest correction. [19659006] Why President Trumps and Secretary Mnuchin's Statements May Not Be bullish for Bitcoin

Some business executives, like Digital Currency Group CEO Barry Silbert and Ikigai Fund's founder Travis Kling, have said that the comments of Bitcoin by President Trump and Secretary Mnuchin can be recognized as a bullish event for the first crypto curve.

Silbert and Kling mainly stated that Bitcoin has gained enough awareness and interest from the regular and broader investor market to the extent that the President's largest economy in the world was pressured to comment on growth. Kling was quoted and said:

"The chairman of the Fed and Treasury Security both agree that Bitcoin is a speculative value store. Both, along with the president, agree that Libra and Bitcoin are two very different things. "

Silbert, who heads a venture capital firm in the cryptocurrency sector, likewise expressed optimism against the comments. When Secretary Mnuchin held an official briefing at the White House on cryptography, Silbert said it was "complete and total validation of bitcoin", adds in a Twitter post:

"Never imagined I wanted to look at the State Secretary in the United States, keep a White House press release as soon as possible. "

. However, the actual messages from Secretary Mnuchin and President Trump were not positive, with President Trump describing Bitcoin as a speculative asset of value based on thin air. Secretary Mnuchin, who echoes President Trump's feelings, stated that US Treasury will tighten oversight of the cryptocurrency sector, warning of greater control from regulators. Mnuchin stated:

"There are many regulatory and supervisory issues regarding libra, virtual assets and virtual currencies. Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illegal activity such as cybercrime, tax evasion, exortion, ransomware, illegal drugs and human trafficking Many players have attempted to use cryptocurrencies to fund their malignant behavior, which is actually a national security issue. "With the formation of the Financial Supervisory Board's Digital Assets Working Group at the Treasury, Secretary Mnuchin also warned that money transmitters and other entities operating within the crypto sector , will be managed by agencies such as the FinCEN, the Securities Exchange Commission (SEC), and the Commodities and Futures Trading Commission (CFTC) at full capacity. The US Secretary of State also added:

"The rules for money providers apply to both physical and electronic transactions. As money services, cryptocurrency money transmitters are subject to conformity studies, just like any other US bank. To be clear, the FINC will hold some entity as transactions in bitcoin, libra or any other cryptocurrency to its highest standards. "

How will the markets continue to respond?

Speaking to Cointelegraph, a cryptocurrency trader and technical analyst known to the community as Satoshi Flipper stated that despite the price volatility of Bitcoin and other major crypto shares, there are many basic catalysts for Bitcoin to observe.

Several basic factors for Bitcoin in the short term include the emergence of trading venues such as the Intercontinental Exchanges Baked and commodity services from major financial institutions, such as Fidelity. In anticipation of halving block rewards in May 2020, many miners apparently intend to hold on to Bitcoin, and expect the block rewards to be halved to give a positive impact on the medium to the long-term trend of the asset.

In a block reward halving, a mechanism of Bitcoin blockchain protocol triggered in roughly every four years, receiving rewards miners in Bitcoin for mining blocks for the blockchain network is reduced by half. Consequently, the frequency at which new Bitcoin falls, which causes the circulating supply of the asset and the rate at which new supply of the asset is sent to stock exchanges, declines. A dealer continued to clarify:

"There are so many bitcoin catalysts right now. Too many to list. But this time, Wall Street and mature institutional players are much more involved in trading and building materials around #Bitcoin for adoption. Wherever you look now, you can see cryptocurrency influence starting to take hold. All industries are getting involved.I expect this big pressure for adoption to accelerate even more during this current ax market, to the point where in a few years we'll see Bitcoin and Crypto Influence in Everyday Life. "

Brian Kelly, CEO of BKCM, said on CNBC's quick money that many miners he had talked to in May have confirmed to have secured sufficient capital to maintain their business for another 12 months. The purpose of financing 12 months of operation, according to Kelly, is to cut Bitcoin and refrain from selling assets. Kelly explained :

"I have talked to many miners all over the world, many of whom have said they have sold enough bitcoin to get us through the next year or so and we are going to chop bitcoin at this time, and we are not going to sell it and the bitcoin offer will be cut in half. Only real simple economy: a lot of demand affecting little supply, the price goes higher. "

The decline in Bitcoin prices from around $ 10,500 to under $ 9,500 within minutes came across as a shock to many investors and traders – not because of range but because of the slowdown. In the short term, resellers expect Bitcoin to maintain its volatility and struggle to recover beyond important levels of resistance. Peter Brandt, a best-selling author and a reputable trader, stated on Twitter that Total Market Cap on Bitcoin could correct by 80% based on technical indicators:

"While the dish in BTC was subject to different renditions, Total cap should correct 80%. Most of the decline will occur for altars. "

Is Libra a Factor?

Over the past few days, Libra, a cryptocurrency created by the Libra Association, a consortium based in Switzerland kicked off Facebook, faced fierce criticism from the US government. US House Representative Kevin McCarthy, who publicly expressed optimism against Bitcoin because of its decentralized nature, shared concerns about Libra:

"When I'm on Facebook, I'm not the customer, I'm the product. Facebook "It's free because they sell your data to make money. Now they want to get into the business and they are not Bitcoin in this Libra. They are not decentralized. I want to see decentralization because Libra worries that they should control the market. . "

When Libra first released its White Paper to the public, crypto-rally executives, including Ripple CEO Brad Garlinghouse, said that it meant a significant attraction to the market, which led to the contracts remaining. It is therefore possible that the deviation of Libra led to an increase in retail sales by the end of June, and that the increasing control of regulators could impede Libras' near future, which could cause some investors to doubt the short-term performance of the crypto market.

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