Bitcoin Falls as Mnuchin [Reportedly] Plans to Regulate Private Wallets
But the rumored regulation appears to limit many of those features. Mr. Armstrong noted that — if Mr. Mnuchin moves the legislation — they would have to conduct identity verification on each user that downloads its software wallet. This could potentially put their financial privacy at risk.
The flagship cryptocurrency hit an intraday low of $17,150 in ancient Asian hours Mondaydown more than 12 percent from its year-to-date summit 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.
In a Twitter-thread, the chief executive said that his company”heard rumors” about the US Treasury Secretary Steven Mnuchin’s plans to introduce fresh rules for”self-custody wallets” at the end of his term.
Meanwhile, some traders expected the cost to continue further lower until it finds a service level to try a rebound towards $20K.
“All Exchanges Inflow Mean increased a couple of hours ago,” said Ki-Young Ju, the CEO of data analytics platform CryptoQuant. “It indicates that whales, comparatively speaking, deposited BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I think we could break 20k in a day or two.”
Regardless of the growing uncertainty from the US Treasury, Bitcoin posted an attractive rally upon hitting $17,150.
Published at Thu, 26 Nov 2020 06:14:02 +0000
BTC/USD recovered about 4% of its losses immediately after the plunge, leaving behind a long wick famous for predicting the fake breakout moves outside. It means that dealers are still short-term bullish on Bitcoin, presuming that the cryptocurrency would keep on rallying up towards supportive macroeconomic settings.
Bitcoin forms a large bearish wick in signs of a bullish rejection.