Bitcoin falls below $36K as Ark’s Cathie Wood addresses regulatory concerns about bitcoin.

Spread the love

 206 Interactions,  4 today

The flagship cryptocurrency is experiencing increased profit-taking at its 200-day simple moving average wave.

The rapid rise of Bitcoin (BTC) above $40,000 during the early New York trading session on Thursday lost steam midway as traders chose to lock in short-term profits.

After peaking at $40,440 on Coinbase, the benchmark cryptocurrency fell up to 12.08 percent. It hit an intraday low of $36,410 just before the London opening bell on Friday, demonstrating bullish resilience among traders near the $40,000 mark.

Bitcoin price pulls back after testing its 200-day simple MA. Source: TradingView

Technicals and looming regulations

Concerns over tougher crypto market rules have created obstacles for Bitcoin’s generally bumpy but steady price recovery.

In retrospect, the BTC/USD exchange rate plummeted to $30,000 on May 19 on news of China’s prohibition on crypto transactions.

In the same week, US President Joe Biden’s administration targeted regional crypto speculators by making it essential to record transactions above $10,000 to the Internal Revenue Service, putting additional downward pressure on Bitcoin and comparable digital currencies.

RECOMMENDED READ:  IBM gives blockchain platform code to Hyperledger in order to accelerate business blockchain adoption.


Meanwhile, fears over rising inflation prohibited Bitcoin from making further declines. The most recent major inflation report in the United States revealed data ranging about 4.2 percent, which was around 2.2 percent higher than the Federal Reserve’s estimates.

Ideally, this would have encouraged the US Federal Reserve to reduce its present expansionary policies, but authorities agreed that inflationary surges were “transitory.”

The choppy trading range created by the conflicting fundamental signals has driven Bitcoin’s price into a choppy trading range, with $35,000 functioning as temporary support and $40,000 functioning as interim resistance.


Wood feeds the bullish fire

Meanwhile, Ark Investment CEO Cathie Wood sought to allay concerns about increased inspection of Bitcoin firms.

RECOMMENDED READ:  Bitcoin price D-Day might happen at any time, according to a trader, as BTC reclaims critical level.

Speaking earlier this week at the Consensus 2021 conference, the famed tech investor stated that it is hard to shut down cryptocurrencies, expressing her belief that authorities would ultimately need to understand blockchain assets.

“I believe that the competitive dynamic in the rest of the world is assisting us in the United States. “I think it’s been good,” Wood said last week in an interview.


Wood highlighted that investors have delayed their money flow into Bitcoin and other competing assets due to their poor environmental profile when it came to falling institutional investments in the cryptocurrency market. When Elon Musk’s benchmark company, Tesla, chose to discontinue accepting Bitcoin payments for its electric automobiles, he voiced the same point.

However, the wealthy entrepreneur then supported a North American crypto mining coalition to measure and minimize crypto-related carbon emissions.


“Half of the solution is: understanding the problem,” Wood said during her Consensus conference address.

“This auditing of what miners, certainly in North America, are willing to do around how much of their electricity usage is generated by renewables is going to bring that topic into stark relief and will encourage an acceleration in the adoption of renewables beyond which otherwise would have taken the place.”

She also stated that institutional buying in the Bitcoin market will restart when the cryptocurrency’s green profile improved.

RECOMMENDED READ:  Ripple supports XRP Holders' motion to join in the XRP lawsuit, but with a caveat.

Wood’s Ark upped its Coinbase stock holdings this week, purchasing another 223,181 shares to bring its net exposure to the Nasdaq-listed cryptocurrency exchange to more than $1 billion.


Leave a Reply

Contact Us