The rumour mill is buzzing this morning with news that the US Treasury is considering charging several institutions with laundering money through cryptocurrency. At the moment that’s all it is and I wonder if it is engineered to pull the price down, fast. However the move down is just news and this sort of news shifts markets but not for long.
The cyrpto remains within bounderies and I would have though the institutions involved will find their share price dropping as well. II would imagine this could be a good time to buy but I’m nervious that the strong upward trend Bitcoin was sitting in has dropped off. I had as you know wondered about this being a head and shoulders reversal which it proved not to be.
https://twitter.com/Fxhedgers/status/1383611847144730626
From this point I would imagine that the crypto markets will just turn back up as buyers find more lows to buy at.
Jurisdiction over Bitcoin
The treasury must be careful here though, really they have absolutly no jurisdiction over cryptocurrency so they will need to take legal action from the dollar side of any argument placed. Because there is on one, except exchanges, on the Bitcoin side to enquire of.
We are out of market hours so we could see further drops at market open on Monday but I would imagine the news is now priced in and the crypto will recover as it’s not Bitcoin that’s being attacked but certain institutions. Or it could just be market manipulation to pull the price of crypto down.
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