The rapid spike in Bitcoin (BTC) price above $ 40,000 during Thursday’s first trading session in New York lost momentum halfway through. as a trader decided to secure short term profits.
The largest cryptocurrency lost up to 12.08% after hitting a high of $ 40,440 on Coinbase. Hit an intraday low of $ 36,410 ahead of the London opening bell on Friday, which is showing upward resistance among traders near the $ 40,000 level.
Technical aspects and regulations in preparation
Concerns about stricter market regulations for cryptocurrencies have created headwinds for a bitcoin price rally that’s otherwise restless but strong.
In retrospect, the couple BTC / USD had dropped to $ 30,000 on May 19 following news of China’s ban on crypto transactions.
In the same week The administration of US President Joe Biden tracked crypto investors in the area by requiring the Internal Revenue Service to report transactions over $ 10,000This puts more pressure on Bitcoin and other similar digital assets.
Over a two week period, @elonmusk @Snowden @china and @POTUS have had a huge impact on the price of Bitcoin. Environment, security and taxes … Huge depreciation of the currency after every message … Is it a simple coincidence? Or is it a smart plan? Both are opportunities to knock on the door!
to???? Nicky (@NickyThissen) May 24, 2021
For his part, Concerns about rising inflation prevented Bitcoin from going further down. The last big report on US inflation showed the figure was 4.2%.about 2.2% above the Federal Reserve’s expectations.
In the best case scenario, this could have prompted the US Federal Reserve to reduce its current expansion policy. However, officials agreed that spikes in inflation are “temporary”.
Mixed fundamental signals have driven Bitcoin price into a troubled trading range: $ 35,000 serving as temporary support and $ 40,000 serving as temporary resistance.
Bullish fire rises
The CEO of Ark Investment, Cathie Wood tried to allay fears of tighter control over Bitcoin units.
At the Consensus 2021 conference earlier this week The infamous tech investor said it was impossible to ban cryptocurrencies and reiterated her view that regulators need to understand blockchain assets at some point.
“I think the competitive dynamics in the rest of the world help us in the US. I think it was good.”Wood said in an interview last week.
As for the decline in institutional investments in cryptocurrency, Wood noted that investors had interrupted their flow of capital to Bitcoin and other competing assets because of its questionable environmental profile. Elon Musk asked the same question when his company Tesla decided to stop accepting Bitcoin payments. for their electric vehicles.
However, The billionaire businesswoman later supported an alliance of North American crypto miners to track and reduce carbon emissions associated with cryptocurrencies.
“Half the solution is: understanding the problem”, Wood said during his speech at the consensus conference.
This examination of what miners, certainly in North America, are willing to do, how much of their electricity consumption is generated by renewables, will expose this problem and encourage an acceleration of the uptake of renewables beyond what it would otherwise have done. “????
He added that Institutional buying of Bitcoin is resuming due to the improvement in the environmental profile of the cryptocurrency.
Woods Ark increased its stake in Coinbase last week and bought another 223,181 units of the stock Increase net exposure to Nasdaq-listed crypto exchange to over $ 1 billion.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investments and operations involve risk and you should do your own research when making a decision.