A lot has happened in the last few days since my last article. Both cryptocurrencies we focused on in that piece have finally made their move. After three weeks spent in congestion, BTC/USD broke below the important $600 figure today. The move lower exacerbated losses and the crypto soon found itself trading at $578. We are currently quoted at $590 per coin, as the chart below shows.
Going forward, bitcoin will likely continue to lose ground from $590. The next significant level of support stands at $550. After that, the round psychological figure at $500 will provide support to falling prices.
The fundamentals for bitcoin are looking mixed, with increased market adoption and more bitcoin users but also with increased scrutiny by regulators in the States. On the regulatory front, Ben Lawsky, the Superintendent of Financial Services at the New York State Department, posted sweeping new rules for bitcoin firms. The proposed regulatory framework immediately came under fire by crypto enthusiasts. Firms and individuals in the bitcoin space fear that the strict rules will make it hard to legally operate a bitcoin business in the USA.
Bitcoin mining pool BTC Guild warned users that if the proposed rules are adopted as is, the pool will have to stop operating. Ben Lawsky went on BBC to defend the new rules. In the interview, the NY regulator tried to make the case that customers will prefer New York’s strong regulatory framework. This in turn will drive firms to open up shop in the state in order to get the ”safety” stamp of approval.
Peercoin Moves Below $1.30
Peercoin broke the important $1.30 level one day earlier then bitcoin broke $600. After the break, PPC/USD ”flash crashed”, losing close to 13% and hitting $1.16 per coin. In our last article we mentioned the possibility of large losses in PPC if $1.30 gives way, due to the crypto’s thin orderbook. Earlier today, as big brother bitcoin was breaking $600, PPC/USD made another run lower, hitting a new low of $1.126. Where are we going from here? Peercoin is gunning for the important psychological target at $1 per coin. We may not get quite to $1, as traders will no doubt place some pending buy orders ahead of the level, but it’s a general area to keep an eye out for. To the upside, we would need a move all the way back above $1.3 and preferably over $1.5 before we would even think about buying PPC. Going forward however, PPC/USD is likely to lose more ground.