Bitcoin and Altcoins Recovery Seems to be Limited
Bitcoin, Ethereum and other major cryptocurrencies traded with a positive bias during the past three sessions. Bitcoin price broke the USD 11,000 level to set the pace for more gains, whereas ETH traded above the USD 1,050 level.
There were a few threats from regulators around the world, igniting pressure on prices. Recently, the International Monetary Fund boss, Christine Lagarde raised concerns about cryptocurrencies regulation.
She feels that there is a need for more regulations on bitcoin and digital currencies to prevent misuse and maintain financial stability. She said: “It is likely to facilitate money laundering, dark money moving around and things that no one is happy about if you’re looking for financial stability and transparency of financial transactions”.
Bitcoin price retreated from highs and was seen testing the USD 11,000 support. Furthermore, the Bank of Canada stepped out to show their intentions of developing regulations around cryptocurrencies.
The Bank of Canada Governor, Stephen Poloz, compared bitcoin trading with gambling. He stated that “there is no intrinsic value for something like bitcoin so it's not really an asset one can analyze. It's just essentially speculative or gambling”.
Overall, there were a lot of regulation talks, which ignited a downside correction in bitcoin and altcoins. The market was in green, but it has now turned red. BTC/USD is down roughly 0.6% to USD 11,200 and ETH/USD is moving higher by 1.2% to USD 1,055.
The overall market sentiment is positive with chances of further upsides in bitcoin, Ethereum, ripple and litecoin.