Bitcoin collapsed amid being a legal tender in El Salvador. It can be recalled that there was a wave of protests against the decision of the government in this regard since the population does not see much benefit in using this cryptocurrency. Salvadorans fear that their salaries, social benefits, and pensions will be tied to Bitcoin, which is still a very volatile instrument. In addition, many experts said that the government did not bother to convey to the population what is the point of introducing bitcoin into the country's financial system and how exactly it should be used. Thus, the BTC rate plunged below the $ 46,600 level, which was an important support level. It should also be noted that its current rate sagged to the next support level of $ 43 852. Thus, a further decline in quotes is more preferable and now, there are specific technical signals for this.
Meanwhile, the Securities and Exchange Commission in the United States has launched an investigation into cryptocurrency exchange Coinbase due to its new Lend service. According to the exchange's CEO, the SEC refuses to explain why it considers loans as unregistered securities. Experts believe that the SEC may finally provide all the regulatory descriptions of the legal use of cryptocurrencies in the near future. It is also reported that the SEC is currently conducting an investigation against the Uniswap Labs exchange. The investigation is only at the initial stage of the investigation: the trading platform and the mechanism for making transactions are being checked. The SEC is also investigating Apple, accusing it of issuing unregistered securities worth $1.3 billion under the guise of XRP tokens.
However, it is absolutely not news that the American government is going to tighten the sphere of cryptocurrencies and digital assets. Rumors about the introduction of taxation on most of the transactions have been going around for quite a long time. Moreover, the US is clearly following in the footsteps of China, which has completely banned mining and the provision of any cryptocurrency services by companies. In the United States, they believe that it does not make sense to completely ban certain types of services, but they are still going to take control of most of the operations and transactions on the cryptocurrency market. In this case, Bitcoin may continue to decline.
Looking at the four-hour timeframe, a collapse in quotes is clearly visible, as a result of which the price consolidated below the level of $ 46,600 and below the ascending channel. Therefore, we expect a further decline to the level of $ 43 852 in the near future. As mentioned before, the last round of Bitcoin's growth looks quite groundless, so, at least, a correction of the asset clearly will not hurt.The material has been provided by InstaForex Company - www.instaforex.com