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17.09.202107:30 Forex Analysis & Reviews: ECB intends to regulate cryptocurrencies

Exchange Rates 17.09.2021 analysis

Yesterday, Bitcoin almost consolidated above the Ichimoku cloud, but it still declined at the last moment and remained inside it. In this case, there remains the last impassable border before approaching the upside. At the same time, the cryptocurrency corrected by exactly 50% against the last collapse, which suggests the continuation of the corrective movement. Moreover, it was previously mentioned that the fundamental background is now clearly not positive for cryptocurrencies. It can be recalled that many central banks are beginning to look more closely at the development of the cryptocurrency and digital segment and believe that these areas require strict regulation. Just yesterday, investor and billionaire Ray Dalio said that central banks and governments could well destroy bitcoin since they have the necessary capabilities to do so. On the same day, ECB President Christine Lagarde made a speech, which stated the need to regulate cryptocurrencies. She called cryptocurrencies speculative assets and said they are not "real currencies."

At the same time, Mike McGlone confirmed his forecast for the value of bitcoin for 2021. He said that there is currently a trend around the world for the introduction of digital assets, which will help bitcoin increase to $ 100,000 in the next few months.

Meanwhile, there were protests in El Salvador against the country's President Nayib Bukele. Not so long ago, El Salvador became the first country in the world to officially recognize bitcoin as a means of payment. There was a wave of protests across the country immediately on that day, as many people do not want their pensions, social benefits, and salaries to depend on unstable bitcoin. The reason for the new protests is reportedly the same. The demonstrators also believe that President Bukele is increasingly moving towards authoritarianism and forgetting about democracy. It is reported that ATMs that are supposed to process bitcoin transactions have not worked most of the time since the official recognition of bitcoin as a means of payment. The people of El Salvador believe that the bitcoin exchange rate fluctuates greatly and changes every second, so the cryptocurrency itself cannot be used as a means of payment. It can be recalled that the country's authorities want to facilitate investment in the country's economy by approving Bitcoin. The fact is that many Salvadorans are working abroad and send money home, paying huge commissions for bank transfers. With the help of the main cryptocurrency, cross-border transfers can be made almost for free. However, it can be seen that not everyone supports the initiative of the country's authorities.

As a result, Bitcoin did not and does not have a positive fundamental background. The cryptocurrency continues to trade near the level of $ 50,000, but at the same time, it can decline at any time. If central banks and governments continue to work to tighten the regulation of the cryptocurrency sphere, then Bitcoin will experience market pressure. It was already mentioned that it can simply become a less attractive investment tool, and most traders and investors use it for investment purposes.

Exchange Rates 17.09.2021 analysis

There is a clear downward trend on the four-hour time frame, but the price may consolidate above the Ichimoku cloud in the near future, which will open up excellent growth prospects to the level of $ 51,350. It should be recognized that the bears once again showed themselves on the weak side and failed to break through the important level of $ 43,852 twice. Thus, it is possible that growth will resume, and sales should not be considered until the price consolidates below the level of $ 43,852.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2021
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