Many traders are waiting for a correction in cryptocurrencies, and it seems that here it is. The exchange rate of bitcoin and ether collapsed after reports appeared that the central bank of Turkey banned the use of cryptocurrencies as a form of payment. From April 30 of this year, payments and electronic transfers of funds in cryptocurrency will be restricted in Turkey. The authorities took this step because of the high level of anonymity of digital tokens, which create the risk of "irretrievable" losses of funds. And now the highest Turkish circles have found a reason. The restrictions also apply to companies that process payments and make electronic transfers of funds.
The official statement said: "The lack of regulation, oversight mechanisms, and a central regulatory authority, combined with the possibility of criminal activity and the high volatility of their market value, means that digital tokens carry "significant risks to the entire financial system." No one expected such a turn of events, although back in March, the Turkish Ministry of Finance issued a statement expressing "global concern" about the development of cryptocurrencies. The ministry said it is working on the rules in cooperation with the central bank, the banking regulator, and the Capital Markets Council of Turkey.
Let me remind you that the Indian authorities are also considering such measures, however, the unrest on this issue subsided in mid-March and specific prohibitive actions have not yet been reached. It is expected that in the near future, India will also propose a law that prohibits cryptocurrency and will penalize anyone who trades or owns such assets, up to criminal liability. More recently, the European Union, along with the President of the European Central Bank, Christine Lagarde, also gave a characterization of bitcoin, saying that the cryptocurrency promotes "criminal business".
Despite this, the bitcoin exchange rate has updated the level of 64,000, showing an increase of almost 120% this year. At the same time, Ethereum, the second-largest cryptocurrency, jumped by 225%.
As for the current technical picture of bitcoin, the observed correction does not yet pose a threat to it in the medium term. The rebound from the level of 64,500 may continue to the larger 60,000 support. The bulls are reactivated, especially since there is every reason for this. A break of 60,000 may exacerbate the picture, which will push the cryptocurrency into the support area of 55,400. However, this will not lead to long-term problems for the bull market.
What will help Bitcoin in the long run
The fact that more and more institutional investors are coming to the market is the main criterion for the growth of cryptocurrency. The faith of large investors in this asset was strengthened after the IPO of Coinbase, a company that provides services for trading cryptocurrencies and tokens, as well as serving large holders of digital money.
As it became known, after the recent IPO of Coinbase, Katie Wood funds bought $ 352 million of shares in this company and continue to be interested in other operators in this area. According to data released by the funds in an email, Ark Innovation flagship ETF has bought a total of 341,186 shares. This means that the purchase of Coinbase exceeds 1 million shares. Yesterday, trading on this instrument ended with its decline by 1.7% since the opening.
Brevan Howard Asset Management is also preparing to start investing in digital assets seeking to capitalize on the cryptocurrency boom. The report says Aron Land will start by investing up to 1.5% of its $ 5.6 billion core hedge fund in digital assets. The managers of the Distributed Global crypto investment firm will take control of the distribution of funds. And although Brevan Howard Asset Management declined to make any official comments, they did not deny this information. Thus, we can safely say that institutions are suitable, and this is good for the market.
