Cryptocurrency slump: Bitcoin’s horror fall explained despite $100k prediction
Bitcoin fraud: Victim discusses ‘warning bells’
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Bitcoin is down just over eight percent while Ethereum has fallen over nine percent, according to latest prices from CoinMarketCap. The turn in fortunes comes following a period of strong growth for both tokens with many hoping to see them break record barriers of $70k (£52.04) for Bitcoin and $5k (£3.72k) for Ethereum. Today they stand at $60.7k (£45.14) for Bitcoin and $4.23k (£3.15k) for Ethereum. Head of Investment at Interactive Investor Victoria Scholar said: “Over the past fortnight, cryptos have been under pressure, with losses accelerating this week, sending Bitcoin and ether down more than 13 percent from their recent highs.”
“From a technical perspective, bitcoin has breached key support at $60,000, which could pave the way for further declines unless it can break back above this round number resistance.”
However CEO of multi-asset brokers SquaredFinancial Husam Al Kurdi said he was “still bullish” on the cryptocurrencies predicting Bitcoin could break $100k (£74.38k) by as early as 2022.
Ethereum he also predicted could be expected to double.
Speaking to Express.co.uk Mr Al Kurdi cited new rules from the new US infrastructure bill as a factor in the recent fall in prices.
The bill recently signed by US President Joe Biden adds a number of new obligations to the industry such as requiring brokers to notify the IRS of all cryptocurrency transactions.
However he remained confident that this would prove a short term drop and long term it was good news to see steps towards regulating the market.
He explained: “Putting rules around digital transactions is a very positive step.
“This framework was missing before and can evolve into a fully regulated thing.”
He added this would add confidence for investors as well as pointing out managed regulation would be better than seeing regulators taking a more heavy-handed approach and restricting cryptocurrencies altogether.
A heavier approach has been seen in China today with authorities announcing a crackdown on crypto mining which they have described as “extremely harmful”.
Sales Trader at digital asset broker GlobalBlock Marcus Sotiriou suggested the fall may also be linked to the current strength in the dollar which tends to impact riskier assets such as cryptocurrencies when it rises.
Like Mr Al Kurdi he also agreed US regulatory changes were playing a role.
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Mr Sotiriou explained: “Biden has signed the US infrastructure bill which includes crypto tax definitions that would make it much harder for investors to report their taxes.
“The infrastructure bill will introduce new definitions for what a ‘broker’ is.
“This will mean that people participating in the network may have to behave as node operators to report identifying information for crypto transactions that they have no way of gathering.
“Crypto enthusiasts are concerned with this legislation as it may stunt innovation in the US.”
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