We predicted that the Bitcoin prize will remain stable on Monday, and after a short fall below the $650 threshold on Wednesday, but the price rose quickly and in remained in the range between $650 and $660. There aren’t any serious indications that there will be rapid changes of the value of the most popular currencies in the following days.
One of the main principles of the Bitcoin, the anonymity of traders and users might be in danger in the EU, as the European Commission announced its plans to create a database of all Bitcoin users within the European Union. This move is motivated by the allegations that Bitcoins are used to finance illegal activities.
No Significant Changes
The past few days didn’t bring any significant changes in terms of Bitcoin value. The price has changed only 0.05% in the last 24 hours and the volatility remains over 50%. During most of the day the price has been fluctuating between $652 and $653 which is a very low margin, considering that the price of one Bitcoin changed by more than $200 in the past few months.
The market cap is still above $10 billion, or somewhat around $10.3 billion to be more precise and the traded volume in the past 24 hours is almost $82 million. It seems that the price will not likely fall below $645. The difference between the averages is decreasing, which might attract potential buyers.
If that happens that might create enough momentum to increase the price up to $665 or even above and in that case the next border would be $680. If the price does fall below $645 that will be an indication of an opposite trend.
EU to Establish a Database, Some Fear It Will Be the End of Anonymity
Bitcoin users and potential new users in Europe are worried because the EU has proposed that will make it obliging for every Bitcoin owner in every member state to be registered in the new database.
The decision, if passed will apply on all crypto-currency and that will definitely will be the end of anonymity. Use of Bitcoins for the purpose of financing crime has been named as the reason for this move. Bitcoin users will have to leave a paper trail in the future and they will need to register with their actual name and details and provide the virtual Bitcoin address to the authorities.
It has been stated that cybercriminals often use Bitcoins, especially in cases when ransom money is requested so that the transactions cannot be tracked down by the authorities. Sources in the EU say that this is already a significant problem in many member states and that is why the EU will do everything within its power to prevent it.
EU already has an Anti-Money Laundering Directive (AMLD), but at the moment experts are working on reforming it and a crypto-currency database will be one of the proposed solutions in the new version. The use of crypto-currencies has been seen as a problem as most the financial intuitions of most countries don’t recognise Bitcoins as currency. Sources say that the proposition might be voted before the end of this year.
This will have a significant impact on Bitcoin trade in Europe, where the first Bitcoin backed product was launched recently in Gibraltar. This exchange instrument is now traded on the Gibraltar Stock Exchanged as well as on the German Stock Exchange.