Bitcoin price analysis: ECB council member calls cryptocurrencies “a fairy-tale story.”


  • ECB Ardo Hansson cautions against cryptocurrencies terming them “ a fairy tale story.”
  • Financial stability is slowly threatened by the existence of virtual assets.
  • Bitcoin price slides below $4,000; 100-day SMA support strength tested.

A member of the European Central Bank (ECB) governing council is reported to have blasted digital assets according to a report published by Bloomberg on January 7. Ardo Hansson was attending a conference in Riga, Lirvia where he reckoned that cryptocurrencies will in the near future end up as a “complete load of nonsense.”

The member went ahead to say that “the bubble has already started to collapse and maybe we should just see how far this collapse goes, and what is left when we’ve reached a new kind of equilibrium.” In continuation he said:

“I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story.”

He is also reported to have emphasized on regulators to protect the interest of the investors in the cryptocurrency industry. Moreover, he said that digital assets are likely to be utilized in facilitating illegal activities. Hansson said that financial stability is slowly threatened by the existence of the virtual assets whose link to the traditional financial market continues to get stronger.

Bitcoin price technical picture

Following the breakout covered in the price analysis on January 7 where Bitcoin blasted past the resistance at $3,900 and $4,000 to hit a 2-weeks high above $4,100, BTC/USD has slumped back below $4,000 and is now exchanging hands at $3,983. The asset is in a downtrend as seen from the stochastic oscillator in the 1-hour range. However, the 100-day Simple Moving Average (SMA) is working as immediate support. The question of whether the short-term support will hold depends on the amount of buying activities in the near-term. Another support is, however, highlighted at the former range resistance, $3.900 while $3,600 is a much stronger support area.

Elsewhere in the market:

Breaking news: Ethereum Classic (ETC) suffers a 51% attack as immutability is disrupted

BTC/USD 1-hour chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Cash price analysis: BCH/USD inching closer to flag pattern breakout

Bitcoin Cash is intentional with this current bullish momentum. The price has been able to sustain above the short-term ascending channel despite testing it twice. The brief deep under $220 support saw Bitcoin Cash make a comeback above $225. 

More Bitcoin Cash News

Ethereum market update: ETH/USD locked in a range after the recent sell-off

ETH has been moving in a tight range after a strong sell-off from the recent high of $197.00. The second-largest con with the current market value of $19.8 billion has recovered from October 12 low of $177.22 to trade at $183.50 at the time of writing, however, the upside momentum is weak. 

More Ethereum News

TRON price analysis: TRX/USD may retest the recent high

At the time of writing, TRX/USD is changing hands at $0.0166. The coin has gained over 4.5% in seven 24 days, and the upside momentum is still strong. Currently, TRON takes 11th place in the global cryptocurrency market rating with a market value of $1.1 billion and an average daily trading value of $638 million.

More Tron News

The cryptocurrency market  at the crossroads amid growing indecision

The cryptocurrency market has been range-bound since the weekend as traders and investors cannot decide what to do next. Bitcoin spiked above SMA200 (Simple Moving Average) daily on October 11, but failed to hold the ground. 

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls trapped below SMA200 daily

Bitcoin bulls have had a short glimpse of victory only to suffer a bitter disappointment this week.

Read the weekly forecast

BTC

ETH

XRP