Regulation
Bitcoin (BTC) Price Falls to $63,000; Solana’s SOL and Ripple’s XRP defy crypto crisis
Crypto Rally Stopped Monday During US Bitcoin Trading Hours (BTC) falling back to nearly $63,300 as US regulators stepped up pressure on crypto companies.
The move above $65,000 early Monday quickly reversed and prices were further pressured following the reveal from popular brokerage firm Robinhood (HOOD). its crypto branch received a Wells notice this weekend from the U.S. Securities and Exchange Commission (SEC), a decision that often foreshadows enforcement action against a company.
The pullback was slight, however, with most crypto assets significantly higher than last week’s low. BTC was down 1.5% in the past 24 hours, but was still up over 10% from Wednesday.
Alternative cryptocurrencies made in mixture, with ether (ETH)dogecoin (DOGE)Shiba Inu (SHIB) and Polygon’s native layer 2 network token (MATIC) flowing 2-3% during the day, while Solana (GROUND) and adjacent to Ripple XRP showed relative strength, rising 4-6%. The broader market gauge CoinDesk 20 Index (CD20) is down 0.3%.
Despite the halt in the rally, crypto hedge fund QCP Capital observed renewed demand for Bitcoin call options for September with strike prices of $75,000 and $100,000, highlighting the increased optimism that that BTC will climb to higher prices in the coming months.
“We are seeing an upward trend in volatility and [funding] “Interest rates followed the rebound on Friday and the weekend,” crypto hedge fund QCP Capital said in a Monday market update.
Rumors about expanding access to newly listed Hong Kong spot bitcoin and ether ETFs for Chinese investors may have fueled the rapid recovery from last week’s lows.
Richard Byworth, managing partner of Syzcapital, said in an article that “there are discussions” in Hong Kong about adding crypto products to the so-called Stock Connect system, which would allow qualified investors from mainland China to access eligible shares listed in Hong Kong. .
In theory, the move would have a significant impact by opening the floodgates for Chinese money to seek alternative assets amid a real estate and stock market rout.
However, Chinese investors have been excluded from crypto ETFs and there has been no official communication regarding the rule change.
Bitcoin ended last week on a bullish note, quickly recovering from its pullback to $56,000. John Glover, chief investment officer at crypto lender Ledn, said it was still possible a price decline could occur before ending the correction from March’s all-time high of $73,000.
“Although the drop to $56,500 may have completed the correction, I still expect a price of $52-55,000 before the fourth wave ends,” Glover said, referring to the wave theory Elliot’s, a technical analysis that assumes that asset prices move repetitively. wave patterns.
The theory claims that price trends develop in five stages, of which waves 1, 3 and 5 are impulse waves representing the main trend, while waves 2 and 4 are retracements between impulsive price action .
“Once the [corrective] “The wave is over, I expect wave 5 to push to around $92,000,” he concluded.