With Bitcoin below $10,000 today, investors are looking at the ‘why’ of the situation.
Yesterday, we reported on Mati Greenspan talking about why he doesn’t believe that fall was based on the president’s tweets.
However, something reversed the Bitcoin rally, and some are suggesting that it may not have been the president’s words, but the words of his cabinet secretary that really started to tank Bitcoin this week.
Covering the changes, Joseph Young at Cointelegraph points to concrete regulatory ideas also espoused by Mnuchin in recent comments.
“With the formation of the Financial Stability Oversight Council’s Working Group on Digital Assets by the Treasury Department, Secretary Mnuchin also warned that money transmitters and other entities operating within the crypto sector will be governed by agencies like FinCEN, the Securities Exchange Commission and the Commodities and Futures Trading Commission at full capacity,” Young writes.
For better or worse, Trump is the ‘boy who cried ‘wolf!’’ – the market has largely stopped interpreting those types of sentiments and translating them to market activity.
Mnuchin, however, is the official in charge of finance, so his statements might hold more merit.
In addition, some are suggesting that sellers took control of the market after Bitcoin hit support levels around $11,000 and pushed it further down.
However, some experts are seeing even the negative comments from U.S. officials as a kind of publicity that may ramp up Bitcoin activity as the coin gains prominence. In some ways, they say, it’s better to have a consumer base listening to negative comments than a consumer base who is not hearing about BTC at all.
Also, others with proximity to the BTC market are looking at underlying factors and conditions, suggesting that the fundamentals are strong.
“Everywhere you look now, you can see cryptocurrency influence starting to take hold. All industries are getting involved,” writes an analyst identified by Young’s story only as “Satoshi Flipper.” “I expect this major push for adoption to accelerate even more during this current bull market. To the point where in a few years, we will see Bitcoin and crypto influence in everyday life.”
Other factors include reward halving, Facebook Libra and the development of the Bakkt Bitcoin futures platform. Stay tuned! We’ll bring you additional news of catalysts in the Bitcoin and crypto space.