Bitcoin fell by the end of yesterday to the level of $29,200, but today it has already begun a rather strong rise. Thus, the markets did not show their interest in selling the main cryptocurrency below the level of $29,000. Although, most likely, big players entered the market at this level and bought all the available bitcoin coins. Recall that, according to the assurances of many analytical agencies, big players did not leave the market (at least not all of them) and continue to buy cryptocurrency. Thus, the struggle continues between small investors and big players. Small investors do not want to continue to keep coins in their wallets at this stage, fearing a new fall in value. Big players believe that bitcoin is still very attractive in the long term and do not want to let it fall below $29,000. Therefore, at the moment it is possible to announce an unsuccessful attempt to break through the $29,000 mark, but it is unlikely to be the only one.
Let me remind you that the news background for bitcoin remains extremely negative, and it continues to deteriorate. Yesterday, the European Commission has proposed a new bill that will amend the current EU legislation, according to which anonymous payments in cryptocurrencies will be prohibited. Any transactions will have to fully identify buyers and sellers, and the mission for the implementation of this law will be assigned to companies that provide services for digital assets. The new rules for the circulation of cryptocurrencies will be caused by the need to combat money laundering and terrorist financing. The innovations will not affect absolutely all market players. After all, many investors transfer bitcoin to each other without intermediaries, just from one person to another.
Such transactions are unlikely to fall under the new law. And in any case, the European Commission and other bodies will not be able to track absolutely all transfers in the bitcoin network. But large transactions will certainly immediately fall under the sights of regulatory authorities, which will require full information about the buyer and seller from exchangers, cryptocurrency exchanges, and other agents. Moreover, the parties to the transaction can use the software to anonymize them on the Internet or conduct transactions through wallets registered in other countries. Therefore, most likely, the new bill will concern only large transactions of big players, which are carried out through banks of large exchanges and so on.
However, the fact remains. The legislation regarding bitcoin and other digital assets continues to tighten. How this will affect the future value of bitcoin is difficult to say now. The overwhelming majority of analysts are currently of the opinion that the main cryptocurrency will continue to decline. The current downward trend section looks too impressive. The repressed miners from China have not yet managed to transport their equipment to other countries and deploy cryptocurrency mining operations there. Thus, in the near future, the network hashrate may remain at low values. Based on the foregoing, I believe that bitcoin will remain at the minimum values of the year until the end of the year.
The material has been provided by InstaForex Company - www.instaforex.com