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Bitcoin gains a foothold on CFTC, SEC testimonies

Summary:

  • Heads of CFTC and SEC testified ahead of the Senate Banking Committee, their views were not so adverse for digital currencies
  • Australian biggest banks rule out prohibition of Bitcoin buying transactions
  • Singaporean deputy PM sees no a strong reason to ban virtual currency trading

As per our analysis we provided yesterday the Bitcoin price gained a foothold after making its lowest point a touch below $5900. Since then, the price has already neared $8000 breaking at the same time a key short term resistance placed at $7200. From a technical standpoint one may forecast subsequent gains if the cryptocurrency manages to stay above the mentioned resistance/support. One of the major reasons standing behind strength of Bitcoin were testimonies provided be heads of the CFTC and the SEC before the Senate Banking Committee on Tuesday. In defiance of expectations, their remarks were not so negative as many market participants had thought.

Let’s begin with Christopher Giancarlo, the chairman of the SEC, who said "we owe it to this new generation to respect their enthusiasm for virtual currencies, with a thoughtful and balance response, and not a dismissive one". He also alluded to Bitcoin usage saying that "sixty-six million tons of American soybeans were just handled through a blockchain transaction by the Dreyfus company to China. So Bitcoin is now being used, it’s being used in our American transportation and logistics system". As you can see he clearly underlined that the most famous digital currency is already used in the real economy to make money transfers easier.

link do file download linkBitcoin could be already set for resumption of gains as it managed to stay above a crucial short-term support line. What’s more, the price drew a bullish engulfing thereafter (marked by the black-blue arrow) which heralds building power of bulls. Buyers could eye $9350 as their next target while an uptrend might prevail as long as the price trades above $7200. Source: xStation5

Australian banks do not consider banning Bitcoin transactions

According to Australia’s ABC reports the four largest domestic banks (ANZ, NAB, Westpac, CBA) are not currently planning a Bitcoin crackdown, at least not yet. Their approach differs from that taken by UK-based Lloyds Banking Group as well as US banks such as JP Morgan, Citi and Bank of America. In its official statement ANZ’s spokesperson said "we monitor transactions for unusual behaviour to protect against potential fraud and in line with our regulatory responsibilities".

Singaporean deputy PM does not see reasons to ban cryptocurrency trading

While many banks, institutions or even governments have already presented quite a cautious approach when it comes to digital currencies, Singapore’s prime minister has stressed there is no reason to ban crypto trading among residents. He added that cryptocurrencies are an experiment and claimed that the jury is still out how their future will look like. He concluded that understanding of full implications of digital currencies will take time and it is too early to say if they succeed in society.

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