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Latest Crypto Market Volatility Pushes Bitcoin’s Price to a Tight Trading Range Tipping Point

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Even with the volatility of Bitcoin continuing to decrease, the flagship crypto-asset has been trading sideways around the $3,900 mark for more than a few weeks now. While this relative stability might be welcomed by some, there are those who believe that the digital asset will face negative price action sometime in the near future.

In this regard, a couple of analysts believe that if Bitcoin is not able to break past its key $4k resistance threshold, it might drop to around the mid-$2,000 region soon.

A Closer Look at the Matter

At press time, Bitcoin is trading for a price point of around $3,844. However, what has been alarming for a fair few crypto experts is the fact that the currency has been caught in this price region for more than 15 days.

Additionally, SFOX’s Danny Kim, recently spoke with Forbes about the premier alt-currency’s declining volatility rates. Kim stated that prior to mid-November 2018, BTC had not witnessed such low volatility since May 2017.

He then went on to add:

“Over the past months, we’ve generally observed tight range-bound trading with very short spikes in both volatility and price to both the upside and downside… While crypto-asset prices remain, as a whole, highly volatile and difficult to predict, the BTC/USD pair’s volatility is currently at its lowest point since mid-November 2018… Before that time, its volatility hadn’t been this low since mid-May 2017,”

At this point in the article, it is also worth adding that after an extended period of sideways trading during November last year, Bitcoin plummeted from $6,400 to an annual low of $3,200.

Also, in regards to BTC’s current support levels, Kim as well as many other experts are of the opinion that $3,800 is not a reliable support zone. They also believe that the currency’s key support levels currently lie around $3,500 and $3,000 respectively.

Bitcoin Plunge Seems Inevitable

As mentioned earlier, Bitcoin’s ongoing stability is quite deceptive since many crypto analysts believe that if the altcoin is not able to break past the $4k mark soon, it will most likely dop to around the upper-$2,000 region.

In regards to the subject, a crypto analyst by the name of SalsaTekila recently stated that BTC was bound to slide in the near future. However, in his opinion the “the mid-to-upper $2,000 range” is a great place for investors to once again start buying BTC.

Final Take

In closing out this piece, it is worth remembering that as and when the crypto marketbegins to witness an increasing level of volatility once again, traders and analysts will be able to gain better insights as to which direction the industry seems to be heading in.

Source.bitcoinexchangeguide

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India’s proposed crypto ban is ‘corrupt’ says Tim Draper

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  • India’s proposed bill is “pathetic and corrupt,” Tim Draper.
  • Draper is known for his public support for Bitcoin and freedom to use cryptocurrencies.

Following a leaked bill from the India government proposed a blanket ban on cryptocurrency, Tim Draper, a Bitcoin support and investor in Tezos has come out to condemn the move. The outspoken investor has recently advocated Bitcoin to the government of Argentina. He refers to India’s proposed bill as being “pathetic and corrupt.”

He wrote on Twitter:

“People behaving badly! India’s government banned Bitcoin, a currency providing great hope for prosperity in a country that desperately needs it. Shame on India leadership.”

His comments have not been received well by the people on Twitter with some saying that Draper has not confirmed the developments and is acting on hearsay only. Draper is known for his public support for Bitcoin and freedom to use cryptocurrencies and does not support government involvement in terms of regulating the space.

As reported by FXStreet, a lawyer in India shared what he referred to as the evidence of a draft law that could be used to ban cryptocurrencies in India except for the ‘Digital Rupee,” a digital asset that will be issued and backed by the Reserve Bank of India.

More on India’s leaked draft bill: India’s battle with crypto ban continues: “Digital Rupee” to be only the digital currency

source:.fxstreet.

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France’s Financial Watchdog Proposes ‘Voluntary’ Regulatory Framework for Crypto Firms

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The Financial Markets Authority (AMF), France’s top financial organization, plans to release an experimental regulatory framework for crypto firms later this month, according to a Reuters report.

The rules will include capital requirements, tax mandates, and consumer protection protocols – which “crypto-related firms will voluntarily abide by” in exchange for regulatory approval, reports Reuters.

Anne Marechal, executive director for legal affairs at the AMF, called the experimental arrangement a “precursor” for international crypto-specific legislation, rather than the mismatched application of financial regulations written prior to the advent of the asset class.

This is not the first time France has unveiled a “tit for tat” regulatory scheme. In April, the AMF released a requirement for banks to open accounts for crypto firms that “opt in” to being regulated. Part of the PACTE law, crypto exchanges and custodians were also extended the “option” to attain an operating visa.

At the time, Finance Minister Bruno Le Maire suggested the European Union follow “the French experience” by using the PACTE guidance to set up a “single regulatory framework” for digital assets in the EU single market.

These relatively unrestrictive legal measures were taken to promote the growth of small and medium-size businesses. While some governments, organizations, or industry leaders call explicitly for self-regulation or no regulation, many believe clearer rules regarding the sale, distribution, trading of cryptocurrencies would stimulate, rather than hamper, the industry.

Frederic Montagnon, the co-founder of LGO, a crypto exchange looking to expand into France, told Reuters, “When you are an entrepreneur, the worst that can happen to you is to set up your business where there is no regulation, to see an adverse regulatory framework later imposed that jeopardizes your whole business.”

Marechal said “several” crypto exchanges, custodians, and hedge funds are in dialogue regarding the regulatory framework with the AMF, which is also set to approve “three or four” ICOs.

Specifics will arise when the watchdog publishes the regulatory guidance.

source:coindesk.

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For each U.S dollar in BTC spent on the darknet, $800 is laundered, says report attacking Steven Mnuchin’s claims

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Following the crypto-focused briefing by the U.S Treasury Secretary, many have drawn conclusions that best fit their financial interests. But, with Steven Mnuchin linking Bitcoin to enabling illegal activities, hardcore crypto-enthusiasts have taken the criticism personally. In an attempt to dispense of this notion, Messari.io published a detailed report to compare the top fiat’s contribution towards fraud, in comparison to the world’s leading cryptocurrency, Bitcoin.

Source: Messari

In the report titled, “Bitcoin in the grand scheme of things,” BTC’s contribution toward illegal activities was dwarfed by the strongest of fiat establishments. Through a combined analysis of data from Chainalysis and United Nations Office on Drugs and Crime, the report claimed,

“For each $ (U.S. Dollar) in BTC spent on the darknet, at least $800 is laundered.”

While this revelation may come as a shocker to traditional financial giants, it is important to note that messari.io has considered the total volume of BTC spent on the darknet, which largely comprises of legitimate transfers.

Further, the one-on-one comparison also showed that global economies recorded an explosive increase in their stock of narrow money [M1] i.e. physical money and digital assets. With the European Union leading this race with 0.87 billion in supply, it’s currently 98% higher than BTC’s total supply expected to be recorded sometime in 2020 (considering BTC’s price to be $10,000).

The report also considered the Federal Reserve’s balance sheet from 2009, the year when BTC was launched. The report revealed that the Fed’s balance sheet showed a currency issuance rate of 13,664%, against BTC’s modest 12 billion.

This report was shared by, @fmoulin7, over a tweet directed towards Mnuchin, which read,

“Just a quick reminder… @stevenmnuchin1”

Most leaders within the cryptoverse expect the U.S. government to allow the use of crypto within the limits set by the nation’s ruling government. The remaining however, retain their optimism for a BTC-dominated future, with or without the support of the government.

Source.ambcrypto

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