While Bitcoin and Ether are declining dramatically, British cryptocurrency companies and investors have high hopes that new UK Prime Minister Rishi Sunak could turn around Britain's fading cryptocurrency aspirations.
The new UK leader, who was finance minister in former Prime Minister Boris Johnson's government, faces a huge to-do list and unresolved issues, which include undoing the economic havoc caused by his predecessor Liz Truss. Cryptocurrency is obviously not high on his priority list, but rumor has it that crypto enthusiasts have reason to be optimistic.
After Sunak won the race to become the next UK Prime Minister, traders, investors, and especially owners of cryptocurrency-related businesses were relieved. There are rumors that Sunak is a more sensible person, especially after the arrogance and incompetence of Liz Truss and former finance minister Kwasi Kwarteng almost crashed the UK economy.
Earlier, Rishi Sunak said he saw the opportunity and potential that cryptocurrency had wanted the UK to be a leader in it. Sunak, a former Goldman Sachs analyst, has on several occasions expressed his positive attitude toward crypto. In April 2022, as UK finance minister, he outlined an ambitious plan to make the country a global crypto hub. This included bringing stablecoins within the regulatory parameters and getting the Royal Mint, the UK's official coin maker, to launch a non-fungible token.
But after a few weeks of being the UK Prime Minister, crypto firms and investors are wondering what Rishi Sunak will do to boost the market that is licking its wounds after several tough months and multiple corporate bankruptcies.
In a survey of 300 British founders of cryptocurrency-related fintech companies, nearly 20% of them believe that the regulator is actively signaling that the UK is not the place to start a crypto company. Nevertheless, the UK is home to quite a large number of crypto market makers.
As for today's technical picture of Bitcoin, it is at the critical level of $15,560, below which there is no optimism. Currently, the main focus is on defending this very level. If sellers break through this level, the asset will be hard hit. A breakout of $15,560 would increase the pressure on Bitcoin. Therefore, it may decline to $14,650 and $14,370. If the asset breaks through these levels, it will drop to the area of $13,950 and $13,675. The situation will improve in case BTC rises above $16,630. A breakout of this area will push it back to a major resistance of $17,460 and open an opportunity to test $18,108.
Ethereum also declined significantly amid the FTX-related turmoil. Currently, it is difficult to indicate whether buyers will be able to defend the support level of $1,070. It is obvious that they focus on breaking through the nearest resistance of $1,118. That will be enough to make dramatic changes in the market and stop a new bearish wave. If Ether consolidates above $1,118, the situation will stabilize and the asset will likely face a correction in anticipation of a renewal of the highs at $1,172. The area of $1,220 will be considered a more distant target. In case of further pressure on the trading instrument and a breakout of support at $1,073, Ether will reach the level of $999 formed earlier. Its breakout will push the asset to the lows of $934 and $876. Therefore, cryptocurrency holders will be badly hurt.
