BITCOIN FALLS AS NEW YORK LAUNCHES INVESTIGATION
In late December, bitcoin reached an all-time high of almost $20,000. After that, the currency started falling, reaching a year to date low of $5,800 in February amidst concerns of increased government regulation. A series of other negative news and commentary from leading analysts contributed to the decline in its price.
After weeks of declines, bitcoin’s price started going up last week amid optimism that the end of the US tax season could attract more traders. It moved from a low of $6670 to a high of $8350.
Yesterday, its price declined after reports emerged that the New York Attorney General was launching an investigation into 13 major cryptocurrency exchanges including Coinbase and Gemini. The officials sent a detailed questionnaire to the firms seeking explanation about their business practices. Their goal for the investigation is to protect the consumers. Traders believe that the investigation will result in the introduction of more regulations.
The news of the investigation came a day after Christine Lagarde, Managing Director of the International Monetary Fund (IMF), called on governments to come up with regulations targeting cryptocurrencies in a bid to make them safe for consumers. In a blog post, she compared cryptocurrencies to other life-changing technologies that have emerged over the past few decades.
BTC/USD is now trading at $7843, at the middle of the Bollinger Bands with the MACD indicator showing that the pair could move in either direction.