Bitcoin sidelined under $6,400 as crypto proponents begs to stop the Wild-West ways of the industry
|- BTC/USD is rangebound, though the downside risks prevail as long as it stays under $6,400.
- The industry needs regulation to become more mature. Bitcoin is sidelined under $6,400 handle amid slowly growing bearish pressure.
The local support zone lies with $6,350. This area stopped the downside on Friday and may serve as a good jump-off-place for recovery this time. Meanwhile, BTC/USD needs to get above $6,400 handle as soon as possible to mitigate bearish risks and get a chance for an extended upside movement. The next resistance is created by SMA200 (4-hour) at $6,480 and followed by $6,500.The growing crowd of crypto enthusiasts from all over the world increasingly believe that the market needs to become a regulated place with clear rules like those for stocks and bonds trading. Otherwise, the industry will be inhabited quick buck hunters, while its development will be restricted to speculation trading.
“The most powerful force to reverse such negative sentiment would be market regulation. If the crypto market is ever to establish itself as a credible alternative asset class, it will need a set of rules that will weed out fraudulent activity and encourage stable growth, which should attract the deep pockets of institutional investors,” says Daniel Santos, a former Standard Chartered Plc banker and an owner of Singapore-based ratings company for digital assets.
People are wary of security breaches frauds and alleged price manipulations, that's why they may refrain from getting involved in cryptos. This skeptical attitude makes mass adoption of digital assets highly improbable, at least within the nearest 10-20 years.
“If you heard someone from a bank asking for more regulation, you would think you were reading a headline from The Onion. But people don’t have confidence that crypto markets are not manipulated,” said Kyle Asman, co-founder of crypto advisory firm BX3 Capital.
The recent Tether issues caused ripples across all cryptocurrency assets and dented confidence in this stable coin.
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