Bitcoin volatility creeps up ahead of SEC decision

Summary:

• Bitcoin saw volatile trading on Wednesday declining to above $6000 and then surging to near $6500 as a SEC verdict looms

• Russia prepares for the long-awaited legislation to regulate cryptocurrencies

• Some Brazilian banks come under a probe for alleged monopolistic tendencies in trading Bitcoin other coins

Yesterday we wrote about Ripple which surged suddenly on Tuesday. Today attention is paid to Bitcoin after a volatile day it had yesterday. At first, the most famous cryptocurrency plummeted to above $6000 just to bounce to almost $6500 without any particular news. Thus, what could have caused a jump in volatility? One may expect that such disorderly moves could arise more often in the days to come as a cryptocurrency community is impatiently awaiting the US Securities and Exchange Commission’s decision later this month regarding a closely watched exchange-traded fund proposal. Note that if the SEC approves the idea of a crypto ETF it would make it easier to invest in digital tokens, and costs to do so would be likely lower than they currently are. Then, one would imagine that Bitcoin would witness a fresh wave of capital, a move which would understandably benefit other virtual currencies too. That said, from a technical viewpoint nothing has changed since yesterday as the Bitcoin price has thus far managed to stay above its lower bound of the triangle pattern. Therefore, it sounds reasonable to keep expecting the price to move north in the nearest future but, at the same time, more hectic days need to be taken into account as we are approaching the mentioned SEC verdict.

Bitcoin failed to break through the lower boundary of the triangle pattern hence a rise continuation remains on the cards. If so, buyers could still eye the upper limit of the linear formation as their first target. Source: xStation5

The Russian cryptocurrency regulation framework has been delayed. There is still high uncertainty when the final framework could be finally released but some details have been already obtained. Namely, according to the latest reports from Moscow, the term “cryptocurrency” has reportedly been removed from the legal texts nevertheless it does not mean Russia aims to eradicate the crypto industry altogether. Another possible change concerns mining of cryptocurrencies. Initially this process was called as “creating of a cryptocurrency” but now it is expected to be replaced with the description of “the issuance of tokens for the purpose of attracting capital investments”. To sum up, registered local and foreign companies as well as individuals will be still permitted to issue digital coins if they are able to provide collateral for them in form of other assets. There are hopes that the new framework of crypto regulations will be ultimately adopted by the end of the year.

After managing to hold within the channel Litecoin may experience a bounce toward its upper limit. Source: xStation5

The last piece of news concerns Brazilian banks which have recently come under an investigation for alleged monopolistic tendencies in the trade of Bitcoin and other cryptocurrencies. The Administrative Council for Economic Defense (CADE) communicated on Tuesday that it had started a probe of six biggest Brazilian banks. Actions being undertaken by these banks could be limiting the action of brokers within the cryptocurrency industry, according to the CADE. Tackling this issue is a critical task for the authorities given the fact that the number of people trading Bitcoin and other cryptocurrencies has soared from a few dozen thousands to roughly 1.4 million in the past two years.