Cryptocurrencies are trying to bounce back after a steep pullback from one-year highs. Bitcoin (BTC) is trying to bounce back after coming under immense pressure after rallying to highs of $13,000. Altcoins Ethereum (ETH) and Ripple (XRP) are also showing signs of bottoming out.
Despite rallying by 2.6%, Bitcoin finds itself below the $10,000 psychological level. Below the mark, the flagship crypto remains susceptible to further drops given the short-term bearish momentum. While there were expectations that Bitcoin would skyrocket during the American Independence day, that never happened.
Ether, on the other hand, is trying to register steady gains after falling by more than $200 in one hour on July 14, 2019. An 8.3% rally has seen the altcoin find support above the $200 mark. After seven days of declines, Ripple might as well have hit bottom and is due for a correction higher. A 9% rally represents one of the biggest gains among the major cryptocurrencies at a time of growing concerns in the sector.
Cryptocurrencies have come under pressure in recent trading sessions amidst regulatory concerns. Analysts have raised the red flag that governments and regulators may as well be planning to kill cryptocurrencies.
The decentralization aspect, which makes it impossible to track crypto transactions, is reportedly not going well with authorities. Banks are always in control of the circulation of money in the financial sector. However, with the increased use of cryptocurrencies, regulators will no longer be in control of how money moves in an economy.
The fact that cryptocurrencies are poised to shape people’s livelihood and disrupt the status quo is something that is not boarding well with authorities. India and China have already cracked the whip on closing down all the channels for cryptocurrency and altcoin liquidity.
The US government has taken a keen interest in Libra, the newly launched Facebook (NASDAQ:FB) cryptocurrency. The move follows the creation of a task force to look into digital currency fraud, which the government insists is a threat to national security.
At the time of writing, Ethereum is trading higher by 7% at $211, and Ripple is up 6% at $0.319.
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