FX.co ★ Bitcoin: new problems holds back the recovery

Bitcoin managed to recover from the sell-off on Wednesday, but today its volatility is much lower, and the price has not risen above the mirror level of 41,980.24.

Meanwhile, the SEC once again drew attention to cryptocurrencies, puzzled by regulatory issues. Its new chairman, Gary Gensler, is pushing for greater regulation of cryptocurrency exchanges, citing the need to protect investors in this area.

Gensler turned to Congress for support. At the Financial Industry Regulatory Authority conference on Thursday, he said: "At the Securities and Exchange Commission, we are focused on suppressing misconduct in all areas of the financial system. This means holding individuals and companies accountable without fear or preference in the capital markets that we control, which are worth around $100 trillion. "

Gesler, in his message, emphasizes the need to protect crypto investors. For these purposes, it is necessary, according to him, to strengthen the regulation of cryptocurrency exchanges, including those that trade exclusively in bitcoins and which are now not required to register with the SEC.

He also stressed that crypto tokens, which are issued in the same way as traditional investment tokens, fall under the jurisdiction of the SEC, noting that the agency has taken about six dozen coercive measures against those who offer unregistered securities.

Gesler argues that it is necessary for the SEC to update its rules regarding the marketing of cryptocurrency and how it is used. In this way, he plans to protect private investors from attackers who use aggressive methods of promotion and sale.

This statement from the SEC and its head follows the ban on cryptocurrency transactions for financial institutions in China. Hong Kong also intends to strengthen regulation of the digital currency industry. But so far, judging by the incoming data, neither crypto traders nor miners in China have been afraid of new inclinations. They refer to the fact that it will be difficult to verify all transactions of banks and financial companies, and there are still loopholes for those who want to buy digital currencies.

However, all of this news creates a gloomy background for the digital coin market. And since it is prone to euphoria and/or panic in many ways, such news headlines may temporarily hold back the recovery.

In this situation, it is difficult to make a long-term forecast, but a local one is quite possible. It is possible that now BTC/USD may continue to consolidate in the range of 34,708.27-41,980.24, and then it is necessary to monitor which of its borders will be broken first.