At press time, bitcoin has fallen to roughly $7,300. This is $100 less than where it stood yesterday afternoon, though the currency was trading for as high as $7,500 during Tuesday’s evening hours.
The bitcoin arena is something of a mixed bag. For example, China’s president Xi Jinping recently endorsed blockchain technology, stating that it has the potential to heal global economies. Speaking at a recent conference with the Chinese Academy of Sciences this week, Jinping said that the advantages of the blockchain are crucial to the development of the 21st century, and he’s hoping for elevated adoption in China.
“Ever since the start of the 21st century, a new generation of industrial revolution is substantially reshaping the global economic structure with artificial intelligence, the internet of things, and blockchain constantly making application breakthroughs,” he stated.
This marks a serious shift in opinion, as up to this point, China has been one of the strictest countries when it comes to cryptocurrency and blockchain regulation.
On the other hand, popular South Korean digital currency exchange Bithumb has announced it will proceed with a trading ban in 11 countries starting in mid-June. Some of the nations included are Iran, Iraq, Syria, Ethiopia, Serbia, and Trinidad and Tobago. The exchange is eager to enforce anti-money laundering laws ever since its offices were raided in early January, and wants to ensure its customers are safe and protected.
These countries, along with five others, do not possess valid legislation that stands against money laundering and other illicit activities in the financial space, according to company executives. All accounts stemming from these countries will be shut down by June 21. Upbit – South Korea’s fifth-largest cryptocurrency exchange – was also raided in April on suspicious of embezzlement, while four executives from other trading platforms in South Korea have been arrested and charged with fraud.
It is unclear if the announcement bore any negative consequences on the price and caused the drop from yesterday’s high. The good news is that analysts say recovery is likely imminent, and investors have a lot to look forward to in the coming weeks. One source, for example, says that today’s small, but noticeable price drop, is part of a consolidation process after a significantly aggressive move that took the price up by roughly $400 yesterday from the previous day. Bitcoin has been trading with a narrowing range, but market trends still show it moving higher as the pressure from recent sell-offs finally begins to subside.
A heavy supply zone is witnessed at the $7,600 mark, while resistance is likely to occur at $7,560. However, key support has moved up to $7,470.
Another source suggests that bitcoin’s newfound uptrends can be attributed to political activity in Italy and southern Europe. The country’s constitutional crisis and fears of the nation leaving the Euro-zone ultimately led to global stocks and the euro falling overnight, while the U.S. dollar and various cryptocurrencies appear to be gaining in value and substance. It is unclear if this is coincidence or correlation, but bitcoin is showing future bull behavior as Italy undergoes serious financial change, and many investors are jumping into the foray without asking questions.