Bitcoin
BTC$56 409.75

0.06%

Ethereum
ETH$4 502.38

0.10%

Binance Coin
BNB$613.96

0.16%

Tether
USDT$1.001459

0.11%

Solana
SOL$230.69

2.82%

Cardano
ADA$1.68

9.42%

Bitcoin tumbles to $36K as ARK's Cathie Wood addresses BTC regulatory fears


28 May 2021

#Bitcoin

The flagship cryptocurrency faces a higher profit-taking sentiment near its 200-day simple moving average wave. Bitcoin's (BTC) quick run-up above $40,000 during the early New York trading session Thursday lost momentum midway as traders decided to secure short-term profits.

The benchmark cryptocurrency shed up to 12.08% after topping out at $40,440 on Coinbase. It reached an intraday low of $36,410 ahead of the London opening bell on Friday, showcasing upside resilience among traders near the $40,000-level.

Technicals and looming regulations

Concerns about stricter crypto market regulations created headwinds for an otherwise choppy but solid Bitcoin price recovery. In retrospect, the BTC/USD exchange rate had crashed to $30,000 on May 19 after news of China's ban on crypto transactions hit the wire. In the same week, U.S. President Joe Biden's administration targeted regional crypto investors by making it mandatory to report transactions over $10,000 to the Internal Revenue Service, creating more downside pressure on Bitcoin and similar digital assets.

Meanwhile, concerns about higher inflation kept Bitcoin from pursuing deeper downside moves. The last big inflation report in the U.S. showed the figures ranging around 4.2%, about 2.2% higher than the Federal Reserve's expectations.

Ideally, that could have prompted the U.S. central bank to taper down its current expansionary policies, but the officials agreed that inflationary spikes were "transitory" in nature. The mixed fundamental signals have pushed the Bitcoin price into a choppy trading range, with $35,000 acting as interim support and $40,000 serving as interim resistance.

Wood feeds the bullish fire

Meanwhile, ARK Investment's CEO, Cathie Wood, attempted to calm down fears regarding stricter scrutiny over Bitcoin entities. Speaking at the Consensus 2021 conference earlier this week, the celebrated tech investor said it is impossible to shut down cryptocurrencies, reiterating her views that regulators would eventually need to wrap their minds around the blockchain assets.

"I think the competitive dynamic in the rest of the world is helping us in the United States. I think it’s been good," Wood had said in an interview last week.

On declining institutional investments in the cryptocurrency space, Wood noted that investors had paused their capital flow into Bitcoin and other rival assets over their questionable environmental profile. Elon Musk raised the same issue when his benchmark undertaking Tesla decided to stop taking bitcoin payments for its electric vehicles.

However, the billionaire entrepreneur later backed an alliance of North American crypto miners to track and reduce crypto-related carbon emissions.

“Half of the solution is: understanding the problem,” Wood said during her Consensus conference address. “This auditing of what miners, certainly in North America, are willing to do around how much of their electricity usage is generated by renewables is going to bring that topic into stark relief, and will encourage an acceleration in the adoption of renewables beyond which otherwise would have taken the place.”

She added that institutional buying in the Bitcoin market would resume on the cryptocurrency's improving green profile. Wood's ARK increased its Coinbase shares (COIN) holdings last week, buying another 223,181 units of the stock to push its net exposure to the Nasdaq-listed cryptocurrency exchange above $1 billion.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 70.8% 54 $56 409.75 0.06% -2.61% $1 065 549 908 073 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 78.8% 32 $4 502.38 0.10% 1.67% $533 908 042 006 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 82% 34 $613.96 0.16% -1.92% $102 409 523 073 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 90.8% 1 $1.001459 0.11% 0.10% $74 211 260 312 USDT 7 days price change
5 Solana (SOL) SOL Solana predictions 73.2% 59 $230.69 2.82% 12.10% $70 507 890 122 SOL 7 days price change
6 Cardano (ADA) ADA Cardano predictions 64.8% 75 $1.68 9.42% 2.11% $56 038 092 489 ADA 7 days price change
7 XRP (XRP) XRP XRP predictions 64.8% 71 $0.970535 0.13% -6.02% $45 855 154 609 XRP 7 days price change
8 USD Coin (USDC) USDC USD Coin predictions 94% 2 $1.001277 0.27% 0.17% $39 103 668 339 USDC 7 days price change
9 Polkadot (DOT) DOT Polkadot predictions 65.2% 77 $35.59 1.24% -7.80% $35 145 425 116 DOT 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 59.2% 80 $0.207628 1.70% -4.69% $27 481 399 440 DOGE 7 days price change
11 Terra (LUNA) LUNA Terra predictions 67.6% 68 $66.93 5.65% 52.44% $25 971 315 011 LUNA 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 62% 75 $106.73 -8.36% -7.72% $23 904 356 191 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 63.2% 78 $0.000041 -1.75% 1.32% $22 616 002 259 SHIB 7 days price change
14 Crypto.com Chain (CRO) CRO Crypto.com Chain predictions 60% 89 $0.688991 -2.59% -6.99% $17 405 985 331 CRO 7 days price change
15 Polygon (MATIC) MATIC Polygon predictions 71.6% 63 $2.11 0.94% 13.42% $14 799 705 460 MATIC 7 days price change

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