Bitcoin's bull run failed to break the resistance level of $12000; BTC fumbled for the second straight day and wiped almost $1800 off in the last two days alone - investors are now looking for the new support level. It seems more bearish comments may have a part to play in the current selloff - Bitcoin found the bottom around $6000 after shedding more than 70% of its value.Though South Korea has announced its support of cryptocurrencies, pessimistic comments from England and the arrest of BitFunder founder Jon Montroll in the United States raised traders concerns. Is this affecting bitcoin price?Bitcoin trades just over the $10,000 mark today, while Ripple and others are declining at a quick rate.
US Government Arrests Bitcoin Stock Exchange Founder
U.S. regulators had announced their support of legal cryptocurrency trading when they met with the U.S. Senate banking committee early this month. However, the regulators had proclaimed that they will not let illegal activates through cryptocurrency trading.The U.S. regulators were found steadfast in their claims. The U.S. Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) arrested Jon Montroll, who is the owner of bitcoin-denominated stock exchange, BitFunder.
>>Keep Up To Date With The Crypto Olympics: Todays Challengers Are VeChain & NEMThe SEC blames Montroll for defrauding investors and operating an unlicensed securities exchange.SEC said "While [Montroll] admitted that the Balance Statement was the product of his manual intervention in the WeExchange system, he claimed to have discovered the success of the Exploit only after the SEC had asked him about it during his first day of testimony and to have no knowledge of the chat with Person-1".
U.K. and Bangladesh Added to Bearish Sentiments
The Bank of England Governor, Mark Carney, denounced cryptocurrencies as a medium of exchange - saying he believes digital currencies failed to work like traditional currencies.U.K. MPs have also announced that they will be launching an investigation into cryptocurrencies. Nicky Morgan will head the committee and will look at the pros and cons of cryptocurrencies, to ensure Britain's financial infrastructure is well guarded.
Where Would the New Support Level Be?
Bitcoin plunged sharply on Wednesday and extended the downward trend today – BTC price plunged at a substantial rate in both sessions. Some traders are predicting the downside move as a price correction, while bears believe the prices are set to crash below the previous support level. Bitcoin price movement entirely depends on speculation, as any single news report can change the trading trend instantly. As such, it’s too early to predict where prices will move in the days to come. Featured Image: Facebook
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