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Bitcoin continues dropping, Lloyds Bank bans BTC purchases

Summary:

  • Bitcoin (BITCOIN on xStation5) continues its decline being traded markedly below $7800 again
  • Lloyds Bank prohibits its clients from buying Bitcoin and other virtual coins on their credit cards
  • US Treasury Secretary Mnuchin urges for cryptocurrency regulatory talks at G10 summit

After the abrupt rebound which came out of the blue on Friday’s afternoon Bitcoin has resumed its slide in early European trading. Before we move to a technical analysis it’s worth noticing that the most famous digital currency saw a sudden jump yet before the US labour market report release. Consequently, the price skyrocketed from $7600 to above $8700 in less than 90 minutes. Furthermore, Bitcoin was even able to breach $9400 during the weekend but it finally came back to a downtrend. From a technical point of view buyers are not positioned well as the price respected a key short-term technical level placed at $9350. That said, bulls could eye $7500 as their last resort therefore if it’s broken, it could activate more sell stop orders plus stop losses from the latest longs. To sum up, the ongoing bear market ought to prevail until the price breaks the nearest supply zone in a durable manner.

link do file download linkBitcoin is hovering close to its lows after it failed to come back above a $9350 mark. The closest support might be found at around $7500 and should bears break it deeper falls cannot be precluded. Source: xStation5

Lloyds prohibits its customers from purchasing cryptocurrencies via credit cards

link do file download linkLloyds bans credit card customers from purchasing Bitcoin amid fears the latest sharp drop in value could inflate a debt bubble. Source: The Guardian

Whipping though business media outlets one may find the really interesting story concerning Lloyds Banking Group. Namely, the bank chose to ban its customers from buying Bitcoin and other virtual currencies via their credit cards. The bank, which kicks off on Monday, includes Lloyds Bank, Bank of Scotland, Halifax and MBNA clients. One needs to add that it embraces just credit cards (approximately 8 million) and it does not apply to debit cards. Why the bank decided to do so? The primary reason was a sharp fall in the value of cryptocurrencies which, according to the bank, could end up with unpaid debts should the price continue to fall.

Mnuchin calls for regulatory talks regarding cryptocurrencies at G20 summit

The upcoming G20 summit will take place in Argentina as soon as the next month and as usual it will be aimed at talking about the most important issues need to be addressed at first. According to US Treasury Secretary Steven Mnuchin cryptocurrency regulation is among those topics therefore he sketched out the idea to raise this subject during the event. Having said that, he does not think cryptocurrencies could pose a real threat to the financial market stability but even so they might be used in money laundering and other kinds of illicit activities.

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