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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 62.4% 82 $29 106.25 -2.42% 5.31% $554 291 732 800 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 60.4% 82 $1 948.76 -4.39% 2.87% $235 479 609 902 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 93.6% 1 $0.998927 0.01% 0.45% $74 133 574 134 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000000 -0.02% -0.02% $52 342 870 112 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 60.4% 84 $295.00 -1.85% 22.08% $48 166 486 706 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 67.2% 71 $0.409415 -4.38% 13.13% $19 792 398 575 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 92% 1 $0.999245 -0.27% -0.42% $18 398 603 846 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 65.2% 79 $0.514791 -8.42% 17.73% $17 375 510 992 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 63.2% 84 $50.79 -8.30% 15.69% $17 139 777 776 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 62% 87 $0.084252 -5.17% 11.85% $11 177 788 099 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 60.4% 78 $9.61 -8.87% 19.27% $9 486 356 576 DOT 7 days price change
12 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 63.6% 82 $29 092.16 -2.40% 5.58% $8 144 434 333 WBTC 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 61.6% 82 $29.59 -11.64% 6.16% $7 963 113 848 AVAX 7 days price change
14 TRON (TRX) TRX TRON predictions 70.8% 55 $0.071826 -0.02% -1.60% $7 007 431 948 TRX 7 days price change
15 Dai (DAI) DAI Dai predictions 93.6% 1 $1.000124 0.04% 0% $6 501 256 168 DAI 7 days price change

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