Bitcoin’s struggle to break through $25,600 and factors affecting its future.
Bitcoin is showing signs of recovery, but it’s still struggling to break through the $25,600 level. Several factors have emerged that are impacting Bitcoin’s journey.
MicroStrategy’s CEO, Michael Saylor, believes that Bitcoin will reign supreme in the future, despite increased regulatory scrutiny in the United States. Additionally, Celsius, a prominent cryptocurrency platform, is planning to convert 15 different tokens to Bitcoin and Ethereum, which will add to the market’s dynamics.
In contrast, the SEC has been cracking down on the industry, but Hong Kong has embraced crypto exchanges, signaling a shift in regulatory approaches.
- BlackRock applies for first-ever US Bitcoin ETF.
- Top Cryptos to Buy Now Trust Wallet, Uniswap, Casper (as of June 15).
- iShares from BlackRock files for Bitcoin ETF.
These developments, among others, have influenced Bitcoin’s ongoing battle to break through the $25,600 level. By understanding the implications of these factors, we can gain insights into the current market dynamics.
MicroStrategy’s Saylor Foresees Bitcoin-Only Future Amidst Regulatory Scrutiny in the US
Saylor emphasized that MicroStrategy has held the opinion since 2020 that bitcoin (BTC) is the “only institutional-grade investable asset in the crypto space.” He highlighted the widespread acceptance of Bitcoin as a digital asset on a global scale and assumed that authorities do not foresee a promising future for other cryptocurrencies.
According to Saylor, there is a lack of enthusiasm for cryptocurrency tokens among regulators and a limited perspective on cryptocurrency exchanges. In their opinion, cryptocurrency exchanges should focus primarily on trading, storing, and exchanging pure digital commodities like bitcoin. They believe that the entire cryptocurrency sector will eventually narrow down to a niche centered around Bitcoin, along with a few other proof-of-work tokens.
Saylor expressed his belief that the general public gradually recognizes that “Bitcoin is the next Bitcoin” during a Bloomberg interview. He also speculated that Bitcoin’s value could potentially increase by a factor of 10 and then repeat the process. Saylor emphasized the importance of regulatory clarity in driving Bitcoin adoption.
Critics argued that relying on the state’s monopoly of force to protect Bitcoin from market competition might not be the optimal approach. In summary, MicroStrategy’s CEO, Michael Saylor, emphasizes that Bitcoin is the only institutional-grade investable asset and believes in its global acceptance. This viewpoint can impact BTC price by instilling confidence among institutional investors and generating increased interest in Bitcoin as a reliable digital asset.
Celsius to Convert 15 Different Tokens to Bitcoin and Ethereum
A Celsius address created on June 21, 2010, has made a significant move. Despite the recent decrease in the price of Bitcoin this month, the address decided to transfer its entire balance of 50 BTC, equivalent to $1.25 million. This transaction marks the first activity from the address in over 12 years. Transfers of block rewards from 2010 had become less frequent, especially compared to when the coin’s value was twice as high. Btcparser.com, a blockchain parser, detected the complete amount transfer from the “13CFn” address.
Celsius has announced that starting from July 1st, they will sell all altcoins held by their customers (excluding custody and withhold accounts) and convert them into Bitcoin and Ethereum. The sale of these tokens is expected to generate more than $215 million, contributing to the existing selling pressure in the market. The impact of these sales will be somewhat mitigated by diversifying the proceeds among 15 different crypto assets. However, it’s important to note that the plan to exchange the cryptocurrencies for Bitcoin (BTC) and Ethereum (ETH) needs approval from the bankruptcy court.
This recent move by the Celsius address to transfer its entire balance of 50 BTC has implications for the Bitcoin price. Despite the price decrease, this transaction indicates confidence in Bitcoin as a digital asset, as the address chose to convert its holdings into Bitcoin.
Furthermore, Celsius has announced its plan to sell altcoins and convert them into Bitcoin and Ethereum, which will add to the selling pressure in the market.
Hong Kong Lawmaker Urges International Cryptocurrency Exchanges to Apply for License Amid SEC Crackdown
Amidst the recent crackdown on unregistered cryptocurrency exchanges by the US Securities and Exchange Commission (SEC), Hong Kong lawmaker Johnny Ng is urging international exchanges to seek licensing opportunities in Hong Kong.
In response to the crackdown on unregistered cryptocurrency exchanges and securities tokens by the SEC, Hong Kong has updated its regulatory framework to support innovation and cryptocurrency development.
The new regulation, which has been in effect since June 1, aims to cover all aspects of the public’s involvement with virtual assets.
The Hong Kong Securities and Futures Commission (SFC) has stated that the new framework prioritizes investor protection, market integrity, and risk management for financial institutions.
Binance and Coinbase, among other prominent cryptocurrency exchanges, have been subject to scrutiny by the SEC.
Binance US’s assets have been frozen by the regulator.
Coinbase CEO Brian Armstrong has reiterated that his exchange does not list securities, and expressed his determination to challenge the SEC in court to establish clear regulatory standards for the Bitcoin industry.
Despite these developments, Gary Gensler, the SEC chair, maintains that there are existing regulations governing cryptocurrency exchanges, and considers the majority of crypto tokens as securities, with the exception of Bitcoin.
However, Gensler and the SEC have faced criticism from industry players and lawmakers for their enforcement-focused approach to regulating the Bitcoin market.
This trend highlights the increasing recognition of cryptocurrencies as legitimate assets, further reinforcing Bitcoin’s position as the leading digital currency.
Bitcoin Price Prediction
On the technical front, Bitcoin ($BTC) is currently experiencing a period of consolidation as it struggles to surpass the resistance level of $25,600.
During the four-hour timeframe, Bitcoin tested the support level at $24,750 and formed a bullish hammer candlestick, indicating a potential reversal in the market.
The subsequent candlestick closed above the support level, suggesting the presence of bullish momentum.
It is important to note that Bitcoin has already completed a 38.2% Fibonacci retracement around the $25,600 level.
Failure to break above this level may hinder further upward movement.
Monitoring the key level of $25,600 is critical to determine the continuation of bullish sentiment.
However, the relative strength index (RSI) and moving average convergence divergence (MACD) indicators provide mixed signals.
The RSI remains below 50, indicating a bearish bias, but it has recently bounced above the zero line, entering the buying zone.
The MACD also crosses above its signal line, supporting the possibility of a bullish continuation.
If Bitcoin successfully breaks through the $25,600 level, it could potentially target resistance levels at $26,000 and $26,250.
On the downside, immediate support can be found around $25,150 and $24,750.
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