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SINGAPORE / HONG KONG (June 8): Bitcoin has fallen to its lowest level in two weeks, with some analysts pointing to Colonial Pipeline Co’s ransom recovery as proof that crypto is not escaping government control.
The biggest token fell 8.2% to US $ 31,645 in New York exchanges. The larger Bloomberg Galaxy Crypto Index fell as much as 12%, with altcoins such as Ethereum, Litecoin and EOS falling further.
The fact that investigators “can find the untraceable and seize it could undermine the libertarian and unchecked affair of the government,” said Jeffrey Halley, senior market analyst at Oanda. The implications of this may have caused the sale, he said.
The United States has recovered almost all of the Bitcoin ransom paid to perpetrators of the Colonial cyberattack last month, a sign that law enforcement is able to prosecute criminals online even when operating outside of borders of the country.
The Federal Bureau of Investigation (FBI) was able to find Bitcoin by discovering the digital addresses used by hackers to transfer funds, according to an eight-page seizure warrant released by the Department of Justice on Monday.
While the FBI’s ability to track and recover cryptocurrency may run counter to the anti-establishment ethics that led to the development of Bitcoin, it can also be seen as a positive sign for the industry as it seeks wider acceptance by the general public.
Meanwhile, strategists are watching key technical levels for Bitcoin.
“The main price support is at the US $ 30,000 level, and a decline below that handle could stop and accelerate the sell-off in the short term,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
Halley of Oanda said a break below US $ 30,000 could lead to “another surrender”. Rich Ross of Evercore ISI sees a test of support around US $ 29,000.
Bitcoin is still up 14% this year, but the token plunged from a peak of nearly US $ 65,000 in mid-April, casting a veil on the cryptocurrency industry. The sale was exacerbated by billionaire Elon Musk’s public rebuke over the amount of power used by the servers behind the token. Strict Chinese regulatory oversight has also soured the mood.
Virtual currency which has more than tripled in the last year is now in a “cooling off period” that could last “a few more months”, said Vijay Ayyar, Asia-Pacific head of crypto exchange Luno Pte Ltd.
Also Read: Americans Pocketed $ 4 Billion In Bitcoin Profits Last Year
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