[ad_1]
Bitcoin and most other major cryptocurrencies fell on Sunday amid fears of further crackdown on the industry in China and as a report from Goldman Sachs Group Inc. reminded that institutional adoption can be a long process.
Bitcoin and many others in the top 30 cryptocurrencies excluding stablecoins have declined in the past 24 hours at 12:20 p.m. in London on Sunday, according to price data from CoinGecko, although number 2 in the ‘ether is slightly higher. Chinese social media service Weibo has suspended some crypto-related accounts. When trying to view them, a message will appear stating that the accounts have been reported for violating any laws, regulations, or Weibo rules.
Your browser does not support the audio element.
LISTEN: Bloomberg’s Eric Lam of the Multi-Asset Asia Team discusses Bitcoin’s latest moves with Anna Edwards and Roger Hearing of Bloomberg Radio.
Chinese authorities recently warned against crypto trading and Bitcoin mining efforts are being curtailed, which has put pressure on prices.
“Uncertainty over China’s crypto regulations is still a headwind,” said Jonathan Cheesman, head of over-the-counter and institutional sales at the FTX crypto derivatives exchange, in a note Sunday. “So far this has been pretty sketchy, focusing on mining, news shows, and retail influencers.”
Weibo’s media relations manager did not respond to an email request for comment sent on Sunday. The microblogging service took similar action in 2019 when it suspended the accounts of exchange operator Binance Holdings Ltd. and the Tron blockchain platform.
Bitcoin, the largest cryptocurrency, is also struggling with technical levels, staying below its 20-day and 200-day moving averages.
Bitcoin “remains vulnerable to a critical support test at $ 29,000 with downside risk to $ 20,000,” Evercore ISI technical strategist Rich Ross wrote in a note Friday. He said he is currently a “seller,” with a buy stop of $ 41,000.
Bitcoin saw a furious rally at the start of the year, hitting nearly $ 65,000 amid excitement over institutional adoption, the idea that it is a store of value akin to ” digital gold ”and with the support of renowned investors like Paul Tudor Jones and Stan Druckenmiller.
The cryptocurrency has fallen over $ 25,000 since then and recently traded around $ 36,000. It is still up about 25% this year.
“We’re in a choppy lineup,” said Cheesman of FTX. “The key level that the bulls need to hold is $ 33,400 because it keeps the pattern of higher lows intact.”
In a development that undermines the narrative about institutional adoption, a note from Goldman Sachs on Saturday showed that not everyone in finance is eager to get started.
“We hosted two CIO roundtables earlier this week, attended by 25 CIOs from various long and hedge funds,” wrote the strategists led by Timothy Moe. “Their favorite is the Growth style but the least favorite on Bitcoin.”
Still, support for Bitcoin continues to grow in some neighborhoods. In comments on a video released at the 2021 Bitcoin conference in Miami, President of El Salvador Nayib Bukele said he plans to make Bitcoin legal tender in the country, while Square Inc., based in San Francisco, said it would invest $ 5 million to build a solar park. Bitcoin powered mining facility. The project will be built at a Blockstream Mining site in the United States through a partnership with the blockchain technology provider.
Separately, a video posted to YouTube on Friday that appears to be from the group “Anonymous” criticizes Tesla Inc. CEO Elon Musk for various reasons, including his comment on social media about Bitcoin. Musk, for his part, continued to actively tweet over the weekend on crypto and other matters.
– With the help of Tongjian Dong
(Updates markets everywhere and adds FTX quotes.)
Before he’s here, he’s on the Bloomberg terminal.
LEARN MORE
[ad_2]
picture credit