It can be difficult to decipher whether price drives news, or news drives price. It can often be logical to associate price action to events, even if the two are not directly related. Could Bitcoin’s recent downward fall be partly due to heightened regulation, coinciding with a launch delay for the Bakkt exchange?
Current Bitcoin Price
Bitcoin is currently at a price of about $4400 on Blockmodo at the time of this writing. It is unclear whether the bottom is in for Bitcoin price, or whether there is still more room to fall to the downside.
If price does fall, one opinion for a level of support based on technical analysis might be around the $3500 range, based on the Bitcoin daily chart. The chart also still shows significant sell volume.
Price did touch about $4k, before seeing buyers come in to give price a small rally.
Cause of the Price Action?
It is difficult to know what exactly caused this major dump in Bitcoin. This downside action appears to have started last week, with speculation that it may have been caused by drama surrounding the Bitcoin Cash fork.
Although this weeks price action could be the impact of negative news piling up over the past several days.
Crypto influencer Tone Vays mentions the influx of recent negative news in his video today. It would make sense that this news is at least playing a part in recent Bitcoin price action.
Recent Negative News
Vays mentions many aspects in his recent video. Among them are several recent negative news events that have hit the market.
SEC Last Week
Crypto Insider recently reported on the Security and Exchange Commission’s (SEC) statement last week. Said statement detailed further regulation for the crypto space, as well as two ICOs that face penalties.
News came in today regarding Tether (USDT)… again. According to a report by Bloomberg, the U.S. Department of Justice (DOJ) is looking into whether Tether was used to manipulate the last crypto bull run.
News also hit today that the much-anticipated Bakkt platform will postpone its launch date until January 24, 2019, according to their press release on Medium. The Bakkt platform was originally planned to launch on December 12, 2018.
It is difficult to know to what extent events are driving price, or to what extent price is being associated with events.
In his video, Vays alludes to the fact that people sometimes associate certain events with price action, whether or not those events actually caused said price action.
In this week’s scenario, it would make logical sense that price would be related to the above-mentioned events.
If people see these recent SEC regulations as only the beginning of what is coming – that may cause fear of further price drops, and subsequent crypto asset selling.
People may also still be afraid of Tether insolvency. Or maybe selling was partially associated with a premature “buy the rumor, sell the news” type of result, upon hearing the Bakkt release date delay.
Whatever the reason, only time will tell where Bitcoin’s price will go in the coming days.
*This article includes opinions from the author and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever.
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