Bitcoin is not the primary concern for the Bank of England
- Huw van Steenis from the Bank of England comments cryptocurrencies.
- Bitcoin is rangebound under $3,600 handle.
Meanwhile, Bitcoin stays close to $3,500 handle, mostly unchanged in recent 24 hours, The first digital coin has lost about 4% since the beginning of the year.
While some countries are happy to embrace cryptocurrencies and blockchain, the Bank of England remains skeptical of the new phenomenon. According to Huw van Steenis, senior adviser to Bank of England Governor Mark Carney, virtual currencies failed some fundamental tests applicable to the financial services.
“I’m not so worried about cryptocurrencies. They fail the basic tests of financial services. They’re not a great unit of exchange, they don’t hold value, and they’re slower,” he said speaking on Bloomberg TV.
Van Steenis had worked at Schroders and Morgan Stanley before he joined the Bank of England last year. At this stage, he explores the potential of the financial system. He said that cryptocurrencies like Bitcoin were not his priority.
Looking technically, BTC/USD is capped by DMA50, currently at $3,700. This handle proved to be a strong resistance that stopped the recovery on some occasions. Once it is cleared, the upside may be extended to $3,800 and, ultimately to $4,000 barrier. However, only a sustainable move above $,234 (December 24 high) will confirm that the price has bottomed out.
BTC/USD, 1-day chart
Author
Tanya Abrosimova
Independent Analyst
