22
Jun

Bitcoin Drops under $700 as US Regulators Say it Threatens Financial Stability

We warned all our readers two days ago that the likelihood of seeing the Bitcoin fall was pretty strong. The volume was down and the indicators were sending a sell signal; all these signs pointed at one possibility only – a decrease in value of the cryptocurrency.

Our predictions turned out to be true as a short glance at the Bitcoin price chart reveals a price under the $700 threshold. On Monday this number was much higher $750, thus noticing the sharp fall is more than easy.

However, the Bitcoin world, despite the value decline, has been busy. For the first time US regulators have described the Bitcoin as well as its fellow digital currencies as a threat to financial stability, while US entrepreneurs Winklevoss twins have extended their business in the UK. Additionally, the world is still shocked by last week’s heist of $50 million in Ethereum, wondering if Bitcoin’s main rival will ever recover from the blow.

Bitcoin Threatens the US Financial System; Its Supply to be Halved Around July 10

Well, even though there are a few interesting things to share when it comes to Bitcoin-related news, the most important one is certainly the annual report of a group of US regulators that describes Bitcoin and cryptocurrencies as one of the biggest threats to the US financial system. This is worrisome information because if these regulators decide to prevent the Bitcoin from being used, the number of people able to handle the currency will drastically fall.

Luckily, the following piece of information we want to share is quite positive and related to Bitcoin darlings the Winklevoss twins. The Americans that operate the reputable Gemini exchange have extended their operations in the UK.

Also important to traders and Bitcoin enthusiasts may be the article published by the Observer that claims the Bitcoin supply will be halved around 10th of July. Until now we only knew that July is the month in which the mining rewards are going to be decreased, but there wasn’t a certain date when exactly the halving will happen.

As the Bitcoin is going through its recognisable ups and downs, another cryptocurrency isn’t having such a great time. Namely, last week $50 million in Ethereum were stolen and the heist may have ruined all chances for the Bitcoin’s main rival to reach it in terms of value and popularity. A week after an unknown person stole the coins experts are wondering whether the declining currency will ever be able to recover.

Bitcoin Whole Day under $700; Volume Up Again

With the latest price drop the market capitalisation has left the $11 billion territory and fell back at $10.51 billion. However, the volume has almost doubled and settled at $317,817,000. We know that increased volume often announces price changes; even more often, these changes are positive.

The situation at the technical indicators and the averages has, once again, changed. If two days ago the indicators were pro-sell and the averages were neutral, today we receive a buy signal from the indicators and a strong sell signal from the averages. Nonetheless, keep in mind that two indicators are pro-sell, while the majority (six) are neutral. Thus, everything they signal now can change within seconds.

In terms of price, the Bitcoin is currently trading for $663.09 and it never went over $700 during the day. The day’s low was scary $631.26, while the maximum value reached in the past 24 hours was $682.07.

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