On July 20, Bitcoin fell below US$30,000. The market once again saw BTC with the “2” at the beginning of the year. The difference is that the “2” at the beginning of the year was the starting point for the rise. At the down cycle.
Looking back half a year later, Bitcoin formed a triangle from rising, peaking to falling within 6 months. In the past six months, in addition to following the general rule of “falls and rises, and rises and falls”, the external environment has also become much more unpredictable than the previous round of bull-bear conversion.
From the beginning of the year to the first quarter, the global economy was hit by the impact of the epidemic. The demand for safe-haven Bitcoin became strong due to the purchase of some large institutions and companies. The bull market followed, and various new crypto assets such as SHIB were flurrying. The serious Fomo sentiment and rapid speculation.
After the market peaked, China’s supervision of Bitcoin mining and transactions came like a storm. Although El Salvador is famous for accepting Bitcoin as its legal currency, it has also attracted the attention of financial regulators and monetary organizations from many major countries to Bitcoin. Coins and crypto assets are on guard again.
In the first half of the year, the impact of the new crown epidemic on the economy and the regulation of encrypted assets have become an important turning point. The two major factors may also continue to be the “ensemble” that will affect the market in the second half of the year.
The market reappears “2 prefix” Bitcoin
At 11 o’clock on July 20, Beijing time, Bitcoin fell all the way from around 30,200 USD to around 29,200 USD, with a maximum 24-hour drop of 3.3%, and failed to return to above 30,000 USD within a day, and the rebound was weak.
This is the third time the market has seen BTC with the “2” prefix. The last time it was the lowest point during the sharp drop of “5.19”, and the last time it started rising in early January this year. If the US$29,000 of “5.19” was caused by the panic spread under the sharp drop, the US$29,000 this time was the result of the market’s weak rebound and continued decline within 2 months.
On July 20th, Bitcoin returned to the price zone at the beginning of January this year
At $64,000 from the top of this bull market, Bitcoin as the “vane” of the market has lost 54% of the price market. The crypto asset market has shrunk from a market size of $256 million to $125 million, and its market value has evaporated by more than half.
Overseas analysts are also mostly bearish. They judged that the next support level for Bitcoin ranges from $27,000 to $25,000. More pessimists are directly bearish to $20,000.
Some analysts once again mentioned the “declining triangle” of the market analysis model that was often described in the starting point of the last round of bear markets. TrendSpider’s chief market analyst emphasized that “a downward triangle must have formed on the daily chart.” He said that this is usually seen as a bearish continuation pattern, “but it may break up in some cases.”
An analyst on another trading platform also agrees that Bitcoin has entered a downward triangle, although after many tests, the support level of $30,000 will remain for a period of time, and if this key psychological level support is broken, the market may continue to be exposed. Risk of loss.
In fact, when Bitcoin fell below $30,000 this time, many indicators in the U.S. stock market were on the rise. The three major U.S. stock indexes—the S&P 500, the Nasdaq Composite Index, and the Dow Jones Industrial Average—increased at the opening of the market on July 20.
Of course, this is a rebound phenomenon after the U.S. stock market has been bleak for several days. After all, the market generally expects that corporate profitability in the first half of this year will be significantly improved with the reopening of the economy. This also means that Bitcoin has highlighted the risk aversion in the first quarter of this year. The function is being reduced with the economic recovery in the later period.
Therefore, many analysts are paying attention to the recent pressure brought by the new crown variant virus to global epidemic control. “If the downward triangle begins to break through the previous low, market participants should pay attention to the global economic impact of the new crown variant virus.” TrendSpider said The chief market analyst said.
Regulations of various countries target Bitcoin mining and encrypted finance
Judging from the external statements and media reports of overseas analysts, China’s crackdown on Bitcoin mining and trading is an accelerator of this round of market decline. But in fact, China is not only the country that is cracking down on Bitcoin mining.
Recently, the video of the Bitcoin mining machine being crushed by the Malaysian police with a road roller has been circulated on the Internet. Overseas media reported that there were more than 1,000 crushed mining machines, which were equipment used illegally by Bitcoin miners. The equipment was seized between February and April, valued at 1,255,300 US dollars, and 8 people were arrested for using stolen electricity to participate in mining activities.
Malaysian police crushed illegally mined Bitcoin miners
Malaysian authorities have been controlling the illegal mining of Bitcoin, especially the mining of stolen electricity. In June of this year, the Penang police in the country confiscated 441 mining machines that illegally used electricity to mine Bitcoin, and four suspects were arrested.
In addition to China and Malaysia’s aversion to Bitcoin’s power consumption, Iran banned Bitcoin mining in May due to urban power outages and power shortages. The ban will continue until September 22. The country also confiscated 50,000 Bitcoin mining machines that illegally used subsidized electricity for mining in January this year.
The lack of electricity has become the reason why many countries in the East strictly control Bitcoin mining. Compared with mining, the supervision of Western countries such as the United States and the United Kingdom is more vigilant towards financial companies involving crypto assets.
Binance, the world’s largest cryptocurrency exchange, was banned by British authorities from conducting any regulated activities in the country last month. Canadian regulators also subsequently issued warnings about Binance.
On July 20, the State of New Jersey ordered the crypto asset management platform BlockFi to stop providing interest-bearing accounts. Before the ban, investors accumulated a total value of $14.7 billion in interest-bearing accounts provided by the company.
“Our rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey securities laws.” The state’s acting attorney general Andrew Brooke Brook said in a statement. To operate in the cryptocurrency market and get a free pass.” The head of BlockFi denied that their business involves securities.
Cracking down on crypto assets represented by Bitcoin and its related industries, whether it is the representative of Eastern countries in China or the representative of Western countries in the United States, a common feature is to ensure that the mainstream financial system is not affected by foreign, private “financial species”. “Infringement is determined by the consensus of various countries on economic and financial stability.”
For Bitcoin, the blow of regulation is bound to be unfavorable. “All signals are red,” Jehan Chu, founder of Kenetic Capital, a venture capital and trading company focused on cryptocurrencies, believes that BTC will continue to be affected by China’s final ban on crypto assets. The inflection point may lie in the impact of the new crown virus variant on the global economy. Test again.
In the first half of the year, the impact of the new crown epidemic on the economy and the regulation of encrypted assets have become an important violation of the Bitcoin market; in the second half of the year, the two major factors may continue to play a role in affecting the market.
Do you think Bitcoin will continue to fall?
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/regulators-in-various-countries-take-turns-to-exacerbate-bitcoins-decline/
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