Bitcoin Price Struggles After Blockchain Week, Possible New Regulatory Pressure
Cryptocurrencies continue to slow down today as all major coins are in the red on Tuesday. Bitcoin (BTC) is struggling for gains above $8,500 following concerns over increased regulation according to Naeem Aslam, chief market analyst at Think Markets:
“The recent selloff has come from the news out of China that the ICO [initial coin offering] market is still very active and there are fears that China will further increase the strict regulation.”
In a report issued by China’s Ministry of Industry and Information Technology, the government reiterated its position against “certain risks that cannot be ignored” in regards to ICOs, pyramid schemes, and fraudulent behavior. The report compares the current climate to the early days of the internet, advising the public against “excessive speculation” and “false propaganda.”
In addition to regulatory fears, hype surrounding a possible rally following Blockchain Week and the Consensus conference in New York was proven to be a dud. Co-founder of Fundstrat Global Advisors Tom Lee, who is famous for his bullish predictions on BTC price, admitted that his prediction of a post-conference rally was wrong.
While gains above $8,500 are difficult to maintain, $8,000 support is still holding. According to Market Watch, as a the range tightens, the probability of a breakout is growing. For almost six weeks, BTC has traded between $7,800 and $10,000. At press time BTC is trading at $8,095 and has decreased by 4.25 percent over a 24 hour period.
Ethereum (ETH) is is also down, trading at $653.79 down 6 percent over a 24 hour period at press time. Last week, Apple co-founder Steve Wozniak compared Ethereum to Apple, saying it, “interests [him] because it can do things and because it's a platform.”
Altcoins are also all trading in the red. Litecoin (LTC) is down by 3.74 percent over 24 hour period at $129.78, while Bitcoin Cash (BCH) has lost 7.48 percent to $1,145. Also over a 24 hour period, both EOS and Ripple (XRP) are down 6.42 and 3.24 percent and are trading at $12.60 and $0.65, respectively.