Both Bitcoin and other cryptocurrencies are dealing with falls in their prices amid fears of more regulation and restrictions on digital transactions by the Chinese government.
On the other hand, according to a report by Goldman Sachs, the institutional adoption will take a long time. In particular, Bitcoin and Ether have slipped in the last 24 hours, according to data provided by CoinGecko.
The reason why; The Chinese social networking service Weibo stopped all accounts related to cryptocurrencies, under the pretext that they violated the rules of Weibo. The public relations office of the Chinese company refrained from making any clarifying statement. It is recalled that micro-blogging took similar measures in 2019 when it suspended accounts linked to the Binance Holdings Ltd exchange and the Tron blockchain platform.
Chinese authorities recently issued a warning about cryptocurrency trading, while imposing restrictions on Bitcoin mining, resulting in price pressures. Bitcoin also faces technical issues, remaining below the moving averages of the last 20 and 200 days. The most popular cryptocurrency “remains vulnerable, with the next support point being at $29.000. If it breaks, it will risk being at $20.000.” wrote Evercore ISI analyst Rich Ross.
Bitcoin rallied earlier this year to $65.000 amid rampant institutional entry into the cryptocurrency market, with many well-known investors Paul Tudor Jones and Stan Druckenmiller likening it to digital gold. Since then, cryptocurrency has fallen more than $25.000 to $36.000 per currency. Nevertheless, its price increases by 25% on an annual basis.
Goldman Sachs reported on Saturday that not all financial actors are willing to enter the market. “We held two roundtables this week, which were attended by 25 CIOs from various funds. “The most popular topic is the growth style, but the least popular is Bitcoin,” the bank said.
However, the supporters are growing. El Salvador’s President Najib Boukele announced yesterday that he would send a bill to Congress next week that would make bitcoin money legal in the country. “In the short term, this will create jobs and help financially integrate thousands outside the formal economy,” Boukele said in a video presented at the Bitcoin 2021 conference in Miami.
Strike, a mobile payment app that launched in El Salvador in March, welcomed the bill in a statement and said it was working with the country to successfully use bitcoin technology. “This is a worldwide rifle for bitcoin,” said Strike founder and CEO Jack Mahlers at the Miami Conference. “Adopting a digital currency as legal tender provides El Salvador with the most secure, efficient and globally integrated open payment network in the world,” Mahlers said.