Bitcoin price might bounce back this week: last week was quite tricky for crypto markets after regulators started implementing their plans to deal with illegal business activities; SEC has issued new registration rules for crypto exchanges – now exchanges must hold registration certificates to enable them to operate.
Japanese authorities also played a role in tumbling prices last week after they suspended trading activities on several exchanges – authorities are asking for enhanced security measures.
Bitcoin Price (BTC) started last week around $11,500 level; the price tumbled steadily all over the week before finding the support around $8,600 early in Sunday trade. BTC price pared some losses later in the Sunday trading and the coin is now up 6% today.
The rebound in Bitcoin price signifies trader’s confidence in future fundamentals – which the bulls believe will improve significantly after working under the trading guidance and policies of SEC.
On Wednesday, the Securities and Exchange Commission said in a statement that some online platforms used to trade digital assets “provide a mechanism for trading assets that meet the definition of a ‘security’ under the federal securities laws,” which would require them to register with the SEC.
Crypto bulls and market pundits have been applauding U.S. regulators strategy to streamline cryptocurrency markets instead of barring them completely. Previously, several important countries, including China, India, and Bangladesh had imposed a complete ban on crypto platforms. They banned crypto exchanges, amid the threat of money laundering and illegal activities using cryptocurrencies.
SEC’s strategy will completely remove bogus trading platforms, and it will also help in reducing the price manipulation activities through pump and dump schemes. They will also closely look at ICO’s – which will create big barriers for new players entering the market.
U.S. regulators have also set guidelines for European and other global regulators (who have been sending negative signals) to avoid the threat of illegal activities using bitcoin and other digital currencies.