Bitcoin Expects to Fall by Another $3,000, Asserts Veteran Trader

A flurry of historical Bitcoin fractals suggests that Bitcoin will continue its decline by another $3,000.

Veteran trader Peter Brandt made the bearish call in a tweet published Thursday, hours after Bitcoin fell by up to 16.31 percent from its local high of $19,500. He added that the cryptocurrency might extend its downside correction until it hits the lower $14,000 levels, citing similar bearish moves during the 2015-2017 bull run. Excerpts:

“During the 2015-2017 bull market in Bitcoin (BTC), there were 9 significant corrections with the following averages: 37% decline from high to low [followed by] 14 weeks from one [all-time high] to the next [one].”

Bitcoin Fractals

Bitcoin rallied by almost 100 percent six weeks in a row, hitting its yearly high at $19,500 just this Monday. Prospects of growing institutional investments, followed by a favorable macroeconomic outlook led by a depreciating US dollar and negative-yielding debt, allowed the cryptocurrency to grow as an alternative hedging asset.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin correction fractals in the 2015-17 bull run, as presented by Peter Brandt. Source: Trade Navigator

But the rally also made Bitcoin an overbought asset, as Bitcoinist covered earlier. That increased risks of a blowoff top, i.e., profit-taking by traders, which led its price lower by more than $3,000 in the first half of this week. Only Mr. Brandt thinks that the selling action is far from over, going by how Bitcoin behaves historically after exponential bull runs.

“A 37 percent correction from the local top would bring the Bitcoin price to as low as $14,235,” he noted. “Many traders who swore they would buy a big dip when [the] price was above $19,000 will actually become sellers under $15,000.”

Supportive Technicals

Mr. Brandt’s bearish target near $14,000 has two strong technical backers.

First, the level coincides with Bitcoin’s previous resistance areas. For instance, in January 2018, the cryptocurrency briefly tested $$14,253 as a price ceiling before turning lower for the rest of the year. In June 2019, BTC/USD’s bull move topped out at $13,868, also very near to Mr. Brandt’s downside target.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin 20-weekly exponential moving average. Source: BTCUSD on

Second, Bitcoin’s 20-weekly moving average (20-WMA) sits at $12,928, expecting to close above $13,500 should the price consolidates following the latest dip. That further brings BTC/USD within the range of Mr. Brandt’s bearish target near $14,000. Meanwhile, the 20-WMA also holds a record of maintaining Bitcoin’s bullish bias.

“A 20 weeks MA serves as support [level] in a bear market [and] as a resistance in a bull market,” said a pseudonymous analyst. “The price of Bitcoin returns to it over and over again. Maybe, “This-Time-It-Is^Different,” but I personally don’t think so, and I will wait for that MA test.”

In case the price flips bearish on the 50-WMA support, it would risk undergoing an extended downside correction towards the 50-WMA. It sits near $10,000.

Source: Bitcoininst

Bitcoin Eyes $20K Because “Excess Dollar Liquidity” is Still in System

The Bitcoin market suffered major losses mid-week as its price fell from its $19,500-top to as low as $16,200.

Some analysts believe the cryptocurrency has more room for declines, given its 100 percent upside rally before the latest correction. Nevertheless, macro fundamentals are still favoring the young asset’s bullish outlook.

One of Bitcoin’s major upside drivers is a weakening US dollar. The cryptocurrency was among the biggest beneficiaries after the Federal Reserve flooded global markets with excessive greenback liquidity through a flurry of emergency facilities to curb the coronavirus pandemic’s economic impact.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin holds strong above technical support offered by its 20-day exponential moving average. Source: BTCUSD on

Many strategists expected the dollar to rebound after the US government reopened economies. While there were attempts, the US dollar index still declined, having hit its lowest level since 2018 just this week. Its downside bias showed investors’ likelihood to keep their exposure in riskier assets, thus giving Bitcoin ample opportunities to resume its uptrend.

“Excess dollar liquidity [from the Fed] is still in the system,” Salman Ahmed, global head of macro at Fidelity International, told WSJ. “Once things improve and reflation returns, that liquidity can go back into riskier assets.”

A 20% Decline Ahead for Dollar

Investors remain heavily invested in the US, which, in turn, keeps the demand for the greenback higher. But the arrival of a potential COVID-19 vaccine, coupled with expectations of a friendlier trade policy from the Joe Biden administration, makes foreign assets look more attractive.

But it does not mean whole-hearted capital inflow into the developed and emerging economies that are already suffering the aftermath of the pandemic. Interest rates remain stuck at lower levels in most countries, leaving them exposed to their riskier markets.

Therefore, for many strategists, the US dollar remains an overvalued asset, trading high than its actual rates due to a lack of global investment alternatives. A Citigroup report even suggests a 20 percent decline in the greenback’s value, driven lower as global investors hedge away from the US markets.

Hedge Where?

Bitcoin, even when it means receiving a comparatively little capital inflow than what the rest of the traditional market attracts.

The cryptocurrency recently hit all-time highs against several foreign currencies. It rose especially in the inflaton-hit regions like Turkey and Venezuela while emerging stronger in other struggling economies like Brazil, Argentina, Zambia, Sudan, Angola, and others.

Bitcoin was also trading near its record peak in the Russian, Columbian, and Eurozone markets.

The metrics showed a booming demand for the cryptocurrency assets in the said economies. Investors and traders both hedged into Bitcoin and its sister currencies to escape inflation uncertainty. In short, their deviation away from the US-pegged assets also raised BTC/USD’s potential to hit $20,000 despite cyclical downside corrections.

Source: Bitcoininst

Fund Manager: Regulation Rumors Not Likely to Affect Bitcoin in Long Term

  • Yesterday, the chief executive of top Bitcoin exchange Coinbase, Brian Armstrong, revealed that the U.S. Treasury is likely targeting Bitcoin.
  • Armstrong elaborated that he thinks this could have extremely negative effects on the space.
  • Still, Kyle Samani, a managing partner at Multicoin Capital, doesn’t see this as a concern for Bitcoin’s rally.

Coinbase CEO Talks Bitcoin Regulation Rumors

Yesterday, the chief executive of top Bitcoin exchange Coinbase, Brian Armstrong, released a thread alleging impending regulation of the space. He wrote that his company received credible rumors that the U.S. Treasury is in the midst of pushing out a regulation that will require all digital asset exchanges to prove users own the address they want to withdraw to.

“Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I’m concerned that this would have unintended side effects, and wanted to share those concerns.”

Armstrong elaborated that he thinks this could have extremely negative effects on the space. He specifically highlighted how it could cause a walled garden to form between Bitcoin in the U.S. and Bitcoin abroad:

“Given these barriers, we’re likely to see fewer transactions from crypto financial institutions to self-hosted wallets. This would effectively create a walled garden for crypto financial services in the U.S., cutting us off from innovation happening in the rest of the world.”

Coinbase and a number of other companies and prominent investors in the space joined hands in sending a letter to the Treasury to share their concerns about this potential regulatory measure

Will It Affect BTC?

Bitcoin began to move seriously lower after the tweet from Armstrong was published. While it isn’t clear if the rumor caused selling, the price of the leading cryptocurrency fell from approximately $18,600 as of the time of the tweet to $16,100 early the next morning.

Analysts think that it won’t have a tangible effect on the market in the longer run.

Kyle Samani, a managing partner at Multicoin Capital, says that he doesn’t think that this will have a tangible impact on Bitcoin in the current bull market:

“on the Mnuchin rumors For the current BTC bull market (next 12-36 months), it doesn’t matter Why? Next wave of buyers macro buyers want regulation For them, 21M cap is a feature, and censorship resistance is (kind of) a bug They don’t want self custody. Just inflation hedge”

This was echoed by others in the space, who stated that Bitcoin is much more of an inflation hedge as opposed to a form of money that can bypass all government barriers.

This is somewhat of a controversial opinion due to the large contingent of libertarian investors in the space.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from
Fund Manager: Regulation Rumors Likely Not to Affect Bitcoin in Long Term

Source: Bitcoininst

Why One Analyst Claims This Latest Ethereum Selloff is an Ideal Buying Opportunity

  • Ethereum and the entire crypto market saw a sharp downturn, with Bitcoin plunging by over 10% while ETH declined towards $500
  • This selling pressure has been quite intense and may continue hampering the cryptocurrency in the near-term
  • Where it trends in the near-term will depend largely on whether or not bulls can stop it from breaking below $500
  • A decline beneath this level would strike a serious blow to the cryptocurrency’s technical outlook
  • The coming few days and weeks will likely determine the fate of the crypto market for the months and even years to come

Ethereum is in the process of reeling to its key $500 support level, with the selling pressure seen at its $620 highs recently proving to be quite intense.

The rejection here certainly sparked this movement, but it was primarily perpetuated by recent comments from the U.S. Treasury Secretary regarding potentially imminent regulations on the crypto space.

These regulations would target private wallets and require that companies make their users use KYC to use them. This would strike a devastating blow to the DeFi ecosystem especially, while also hurting the broader market.

There’s no doubt that this is why the crypto market is reeling lower today. However, it remains unclear whether these regulations will be pushed through before the executive branch’s leadership changes in January.

Ethereum Plunges as Analysts Eye Key Support Level 

At the time of writing, Ethereum is trading down just over 11% at its current price of $490. This marks a serious plunge from its recent highs of $620 set just a few days ago.

Where it trends in the mid-term will depend largely on its continued reaction to the support that exists around its current price level.

Any sharp decline here could lead it to see some major downside in the days and weeks ahead.

Analyst Claims ETH Could Be Providing a Buying Opportunity 

One analyst explained in a recent tweet that this ongoing Ethereum decline could be providing buyers with an ideal opportunity to buy into the cryptocurrency.

He notes that its monthly chart, the macroclimate of the market, and some technical factors indicate it could be poised to see a serious rebound.

“I had zero ETH exposure since I got stopped on the knife-catch, but this dip looks like the best buy opportunity we can currently hope for. Taking into consideration the Monthly chart, H12 and the market cycle conditions.”


Image Courtesy of Livercoin. Source: ETHUSD on TradingView.

The coming few days should provide some serious insight into where Ethereum and the entire market will trend in the days, weeks, and months ahead.

Featured image from Unsplash.
Charts from TradingView.

Source: Bitcoininst

Jelurida Announces Blockchain-based Bridge Strategy Game

Blockchain software development firm Jelurida is set to launch an on-chain version of the bridge, the strategy card game. The platform will be called Bridge Champ and will enable anyone to set up their own white-label bridge gaming environment. The game leverages the benefits of blockchain, including in-game tokens and cheat prevention. 

Jelurida is known for its development platforms, which include Ardor and Nxt. Ardor, a multi-chain proof-of-stake blockchain, is the company’s flagship project. Ardor operates as a parent-and-child structure, with the Ardor main chain securing child chains connected to the platform. Jelurida launched Ignis as the main child chain of Ardor back in 2018. Now, among its other projects, Ignis will host Bridge Champ, which aims to bring the features of blockchain to the world of online bridge. 

Fivefold Increase in Players in 2020

Online bridge was already popular among the millions of bridge players worldwide. However, since the coronavirus pandemic has restricted social opportunities, online bridge has proliferated to the point where the American Contract Bridge League reported it had seen a fivefold increase in usage by June 2020. For the benefit of the uninitiated, bridge is sometimes referred to as the “chess of card games” due to its complexity and sophisticated gameplay. 

However, online bridge players are getting a raw deal as two large operators currently dominate the space. With a lack of competition to challenge the sector, it’s now a closed system that isn’t optimized for competitive gameplay and doesn’t support white label solutions. 

Now, Jelurida aims to shake things up in collaboration with the Bridge Online Academy – experts in bridge online training. The Swiss blockchain firm is providing the platform and technical know-how, while the Bridge Online Academy brings the know-how of the trick-taking card game and is helping Jelurida build its network in the world of bridge. 

Bridge Champ leverages the benefits of blockchain, introducing an in-game economy for competition registration and organization. Players will be able to “mine” bridge tokens based on “proof of play” and their achievements record, which is also stored securely on the Ignis blockchain. Gamers will also benefit from proven randomization and cheat prevention. 

According to statistics aggregated by FunBridge, over two-thirds of bridge players also play other games. This could bode well for Jelurida, which plans to develop an ecosystem around game tokens that can be used on other platforms. 

Ardor – An Expanding Footprint in Gaming

It’s not the first time Ardor has been used for games and gamifying activities. The platform also hosts Triffic, an augmented reality app that gamifies movement by rewarding users for moving around. Like the vastly popular Pokemon Go, which went viral a few years back, users can hunt for “beacons” on the Triffic app, which nets them even more rewards. The platform is ad-based, enabling advertisers to target their audiences based on location. 

The gaming industry is already huge, with an estimated 2.7 billion gamers worldwide. However, the pandemic is spurring unprecedented further growth. Research from Deloitte shows that 34% of millennial US consumers confirmed they had tried a new gaming activity during the coronavirus pandemic, and the firm believes there’s every chance that game operators can continue to engage these new users even once the pandemic ends. This could spell good news for those blockchain firms that are making inroads to the massive global gaming sector. 

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.


Source: Bitcoininst

Mass Carnage: Bitcoin Bulls Face $750m in Liquidations During Latest Selloff

  • It has been a rough past 12 hours for Bitcoin, as the benchmark cryptocurrency is currently in the process of erasing weeks of gains as it plunges lower
  • The crypto came within a stone’s throw of its all-time highs before the selling pressure began mounting
  • From here, its price rejected and began its descent down to where it is currently trading at
  • One reason behind this dip is concerns regarding a new wave of crypto market regulations in the U.S., due to comments made by Treasury Secretary Steve Mnuchin
  • Bulls were hit hard by the recent selloff, with $750 million worth of long positions being liquidated

Bitcoin and the entire cryptocurrency market have been caught within the throes of an intense uptrend throughout the past few days and weeks.

The buying pressure that the crypto has seen has been unprecedented, with billions of dollars being added to its market cap on a weekly basis.

This 2017-style run-up eventually led to highs of $19,500, which is just below its previous all-time highs. It faced an intense influx of selling pressure at this price that sparked the ongoing descent.

The effects of this were compounded by growing fears of a regulatory crackdown on crypto in the U.S., and Bitcoin bulls faced widespread liquidations.

Bitcoin Struggles to Gain Momentum as Selling Pressure Ramps Up

At the time of writing, Bitcoin is trading down 10% at its current price of $16,900. This marks a notable decline from highs of $19,500 that were set yesterday.

The selling pressure seen at these highs indicates that significantly further downside could be imminent for the aggregated market.

Comments made by the U.S. Treasury Secretary regarding a potential crackdown on the market are likely the main force driving this move lower.

BTC Faces Wave of Long Liquidations as Bears Take Charge

One byproduct of this recent Bitcoin selloff has been a massive inflow of long-side liquidations.

As one analyst noted while referencing data from Coinalyze, the crypto has faced a total of $800 million in long-sided liquidations.

“Almost 800 mil in long liquidations alone. The derivs market hasn’t gotten this rekt since the black swan in March.”


Image Courtesy of Byzantine General.

This type of mass-liquidation event hasn’t been seen in quite some time, as bulls have taken firm control of the cryptocurrency over the past few days and weeks.

Featured image from Unsplash.
Charts from TradingView.

Source: Bitcoininst

Milestone $400 Million Trading Volume Achieved On MXC Exchange Leveraged ETF Following Crypto Breakout

Interest has returned to the crypto market in a major way. Over the last several weeks, Bitcoin has broken all kinds of records in terms of total market cap, hash rate, the number new of wallets, and much more. Altcoins have also surged as a result of the sudden spark of momentum in crypto.

This momentum has also begun to blossom and break records elsewhere in the crypto market as well. Data shows that the daily trading volume of the MXC Exchange leveraged ETF has exceeded over $400 million this week, shattering the previous record high. Here’s why this milestone is so notable and what this could mean for the future of crypto markets.

Crypto Market Explodes With Renewed Interest, Investors Scramble To Profit

Cryptocurrencies are the best performing asset in 2020, during a year when money is being devalued by ongoing stimulus efforts, and the economy is on thin ice. Bitcoin and its closest altcoins have all beaten out stocks, bonds, and even gold.

The market is also now made up of different participants, including institutions and hedge funds for the first time. These high class, high wealth traders seek sophisticated platforms and crypto trading products.

This could be a large factor in why MXC Exchange’s leveraged ETF has set a new world record for daily trading volume recently. While retail traders dominated spot exchanges during the last bull run, new crypto products such as the MXC Exchange leveraged ETF allow for even greater financial opportunity, drawing an onslaught of new traders to the platform recently.

Why The MXC Global Leveraged ETF Soared To New Records

During the recent crypto market breakout, XLM3L, surged 123%, while prices of XRP3L, KSM3L, BCH3L, DASH3L and ETC3L exploded by 67.5%, 65.31%, 58.47%, 57.77% and 48.84% respectively – all within a single day. Investors and traders flocked to the platform to try to chase whatever remaining gains they could.

The perpetual leveraged trading product anchoring spot exchange pricing was especially attractive to investors and traders during the crypto market breakout, prompting them to chase the growing trend and seek substantial gains.

The MXC leverage ETF uses rebalancing risk control and automatic compound interest without margin or liquidations rules to maximize the return and safety of positions. MXC Exchange has recently optimized the trading depth and overall experience of the leveraged ETF, which is available for in the ETF Zone on the MXC Exchange website.

Alex Zha, Director of Global Operations at MXC exchange explained that “at MXC Exchange, we always listen to what our users want. During periods of volatility like this one, more people are eager to increase their exposure to specific cryptocurrency assets. Leveraged ETFs provide them with that option, and we have the largest collection of tradeable vehicles on the market today.”

“Our goal is to keep lowering the barriers to entering the crypto world. Through these ETFs, users can expose themselves to cryptocurrencies without having to worry about owning the underlying asset,” Zha added.

With a new record set, the only way to go from here is up – both in terms of crypto prices and in terms of trading volumes at MXC Exchange and the leveraged ETF.

To learn more, visit the MXC Global website.

Source: Bitcoininst

Bitcoin Could Face Deeper Correction After Dropping $2,000 From Highs

  • Bitcoin has sustained a strong correction since its $19,600 highs seen earlier today.
  • The coin currently trades for $17,300, down approximately 12% from those highs.
  • Some have suggested the coin could drop lower toward $16,000 in the days ahead.
  • Macro charts show that $16,000 is where Bitcoin may find serious support.

Bitcoin Undergoes Strong Drop From Previous Highs

Bitcoin has sustained a strong correction since its $19,600 highs seen earlier today. The coin currently trades for $17,300, down approximately 12% from those highs.

The leading cryptocurrency could sustain a further drop, some analysts have seemingly suggested.

One prominent analyst shared the chart below amid the drop lower. The chart shows Bitcoin’s price action over the past few months, along with key levels highlighted based on the heat map of volume. As can be seen, there are large “inefficiencies in the charts” where there was a lack of traded volume or consolidation.

According to the chart, there is no substantial bid-side support for Bitcoin until the $16,000 region. While the cryptocurrency already tested that region on some top exchanges (namely Binance) earlier today, it may form consolidation around that region.


Chart of BTC's price action over the past few months with an analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter).
Source: BTCUSD from

The trader that shared the chart seen above is the same one that weeks ago predicted that Bitcoin would hit the $18,500-19,500 region when it was trading closer to $13,000. This same trader also predicted in the middle of March 2020 that Bitcoin would see a V-shaped reversal to $10,000 by May or June, which was proven correct basically perfectly.

There is a good likelihood Bitcoin drops toward that region, should we assume the analyst’s views come true yet again.

Expect Drops

While many are fearful after the drop, it’s important to note that drops should be expected in the ever-volatile crypto market.

Bitcoin and traditional market cycle analyst Bob Loukas commented after the drop:

“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. The 2 months later a sharp rally, new ATH’s, and double boom 34% decline. Never a one way street.”

The co-founder of Nexo made a similar comment to Bitcoin, noting that any healthy market does not go up 100% of the time.

It is unclear if Bitcoin will continue its descent lower in the days lower, though many are confident that the bull market is still on.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from
Bitcoin Could Face Deeper Correction After Dropping $2,000 From Highs

Source: Bitcoininst

Bitcoin Expects to Resume Price Rally on Foggy FOMC Minutes

Bitcoin underwent a major downside correction hours after the Federal Open Market Committee (FOMC) released the minutes of its November 5-6 meeting on Wednesday.

The benchmark cryptocurrency fell by almost $1,000 in the late New York trading session, following up to an incredible price rally that saw it almost doubling its value in just seven weeks. Many traders agreed that BTC/USD merely neutralized its overbought sentiments with a plunge, adding that the pair would resume its rally.

“Expect shakeouts on the way up,” market signals provider Credible Crypto said. “This looks like it was one of them. Still bullish. Invalidation at 15.8k but still think we see new [all-time high] before hitting that level.”

Fed Meeting

FOMC minutes crossed the wire, but it sparked little immediate movements across the traditional and Bitcoin markets. It was partially because the Fed officials discussed their asset purchase programs’ direction instead of coming with a definite strategy.

Some agreed that the Federal Reserve should continue buying government and corporate debts at the current pace. Simultaneously, many favored “that the Committee might want to enhance its guidance for asset purchases fairly soon,” hinting the central bank might change strategies according to the economic conditions at that time.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin rose by more than 350 percent amid Fed’s bond-buying programs. Source: BTCUSD on

The minutes came up with three successive outcomes. First, the Fed could decide to buy more bonds. Second, the central bank could extend the maturity of the bonds it purchases. And last, it could aim to buy the same amounts and maturities of bonds for a longer timeframe.

What It Means for Bitcoin

The FOMC is navigating an outlook covered by the risk that the economic recovery slows down in the winter season amid rising COVID-19 infection rates. Meanwhile, positive developments about vaccines also raise the prospect of a strong economic rebound in early 2021, reducing the need for the Fed’s accommodative tools.

That raised uncertainties about whether or not the Fed will modify its policies in the December meeting. Nevertheless, the bank’s officials asserted that they would remain accommodative until their strategies heal the labor market and achieve more than 2 percent inflation.

Bitcoin has rallied incredibly higher amid the ultralow interest rates and infinite bond-buying environment. The Fed programs crashed the Treasury yields lower and put additional downward pressure on the US dollar. It left investors with no choice but to seek alternatives in riskier safe-havens like Bitcoin.

The latest FOMC minutes leaves the cryptocurrency — at best — in an uncertain bias. Nevertheless, they do the same to the US dollar, which is now trading near its yearly low. That could allow traders to remain where they are for a while. As a result, Bitcoin could preserve its bullish bias for the time being.

Source: Bitcoininst

Bitcoin Falls as Mnuchin [Reportedly] Plans to Regulate Private Wallets

Bitcoin prices crashed by almost $1,000 on Thanksgiving eve, logging their worst declines in three weeks as traders grappled with overbought conditions and rumors of tighter regulations.

The flagship cryptocurrency hit an intraday low of $17,150 in early Asian hours Monday, down more than 12 percent from its year-to-date peak of $19,500 established a day before. The plunge further accompanied lower volumes and a toned-down momentum oscillator, suggesting that the market was merely cooling down after rallying relentlessly for seven weeks in a row.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin corrects lower to neutralized its overbought sentiment. Source: BTCUSD on

Nevertheless, the Bitcoin market’s sell-off accelerated, particularly after Coinbase-fame Brian Armstrong warned about tighter crypto regulations in the US.

Cold Wallets at Risk

In a Twitter-thread, the chief executive said that his firm “heard rumors” about the US Treasury Secretary Steven Mnuchin’s plans to introduce fresh rules for “self-custody wallets” by the end of his term.

The open nature of cryptocurrencies allows anyone to create a private wallet by downloading third-party software on their computers/smartphones or through hardware devices that store digital assets. These types of self-custodial solutions come cheaper than traditional financial services — and they ensure privacy.

But the rumored regulation appears to limit many of those features. Mr. Armstrong noted that — if Mr. Mnuchin passes the law — they would need to conduct identity verification on every user that downloads its software wallet. This could potentially put their financial privacy at risk.

“[The regulation] sounds like a reasonable idea on the surface,” he explained. “Still, it is a bad idea in practice because it is often impractical to collect identifying information on a recipient in the crypto economy.”

Bitcoin Bulls Defensive

Despite the growing uncertainty from the US Treasury, Bitcoin posted an attractive rebound upon hitting $17,150.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin forms a large bearish wick in signs of a bullish rejection. Source: BTCUSD on

BTC/USD recovered about 4 percent of its losses immediately after the plunge, leaving behind a long wick famous for calling the fake breakout moves out. It means that traders are still short-term bullish on Bitcoin, believing that the cryptocurrency would continue rallying upwards amid supportive macroeconomic settings.

“All Exchanges Inflow Mean increased a few hours ago,” said Ki-Young Ju, the CEO of data analytics platform CryptoQuant. “It indicates that whales, relatively speaking, deposited BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”

Meanwhile, some traders expected the price to continue further lower before finding a support level to attempt a rebound towards $20K.

Source: Bitcoininst