Bitcoin price declines as regulations talk scares the market
When Bitcoin was first created, the goal was to create a decentralized system that would not be overseen by anyone. This is because, at the time, the world was going through the worst financial crisis since the Great Depression. At the time, people were disappointed with regulators who enabled the crisis to happen in the first place.
With Bitcoin, people were able to make transactions anonymously, which was an important thing at the time especially on the dark web. The dark web is made up of highly encrypted websites that can only be accessed using a special browser known as Tor. People sell products here, including drugs and guns.
Today, the industry is at a crossroads. On one hand, there is a consensus that regulations are indeed good for the industry. With proper regulations, users of the currencies should feel more secure. On the other hand, there are concerns that regulations will remove the need for digital currencies. In the United States, regulators are still exploring ways to regulate the industry. This week, a number of countries like Denmark, South Africa, Japan, and Bulgaria have announced that they too will start regulating the industry. The news could be the reason why the price of cryptocurrencies has remained significantly lower.
The BTC/USD pair is currently trading at 3580, which is slightly lower than the YTD high of 4232. On the hourly chart, the pair’s price is slightly below the short and medium-term EMAs. In the near-term, there is a likelihood that the price will continue to decline and if it does, it will test the important support level of 3500.