Bitcoin tumbles to $36K as ARK’s Cathie Wood addresses BTC regulatory fears

The Bitcoin (BTC) exchange rate above $ 40,000 during the early New York trading session on Thursday lost momentum in the middle as traders decided to secure short-term profits.

The benchmark cryptocurrency fell to 12.08% after surpassing $ 40,440 on Coinbase. It reached a two-day low of $ 36,410 ahead of London’s opening bell on Friday, showing upward resistance among traders close to the $ 40,000 level.

Techniques and threatening regulations

Concerns about stricter rules on the crypto market have created setbacks for an otherwise hacking but solid recovery of Bitcoin.

In retrospect, the BTC / USD exchange rate fell to $ 30,000 on May 19 after news of China’s ban on crypto transactions hit.

In the same week, U.S. President Joe Biden’s administration targeted regional crypto investors, forcing them to report transactions over $ 10,000 to the Internal Revenue Service, creating more downside pressure on Bitcoin and similar digital assets.

So in a span of 2 weeks @elonmusk @ Snow @ Chinese and @POTUS all have a huge influence on #Bitcoin. The environment, security and taxes … A huge drop in value after each message .. Is that a simple coincidence? Or is that a smart plan? Or is it, an opportunity strikes !!

– Nicky (@NickyThissen) May 24, 2021

Meanwhile, concerns about higher inflation have prevented Bitcoin from pursuing deeper downside moves. The latest major inflation report in the US showed the figures at around 4.2%, about 2.2% higher than the Federal Reserve’s expectations.

Ideally, this could prompt the U.S. central bank to downgrade its current expansionary policies, but officials agreed that inflation spikes are “transitional” in nature.

The mixed fundamental signals pushed the Bitcoin price into a critical trading range, with $ 35,000 as temporary support and $ 40,000 as temporary resistance.

Wood feeds the bullish fire

Meanwhile, ARK Investment CEO Cathie Wood has tried to allay fears of stricter scrutiny of Bitcoin entities.

Speaking at the Consensus 2021 conference earlier this week, the famed technology investor said it is impossible to close cryptocurrencies, reiterating her views that regulators would eventually need to surround the blockchain assets.

“I think the competitive dynamic in the rest of the world is helping us in the United States. I think it’s been good,” Wood had said in an interview last week.

While declining institutional investment in the cryptocurrency space, Wood noted that investors have paused their capital flow in Bitcoin and other rival assets above their questionable environmental profile. Elon Musk raised the same problem when his trading company Tesla decided to stop paying bitcoin for its electric vehicles.

However, the billionaire entrepreneur later backed an alliance of North American crypto miners to track and reduce crypto-related carbon emissions.

“Half the solution is: understand the problem,” Wood said during her consensus conference address.

“This review of what miners, certainly in North America, are willing to do about how much of their electricity use generates renewable matter, will make that issue very easy, and encourage acceleration in the adoption of renewable energy beyond what would otherwise have occupied the site.”

She added that institutional buying in the Bitcoin market will resume on the improving green profile of the cryptocurrency.

Wood’s ARK increased its holdings of Coinbase shares (COIN) last week, buying an additional 223,181 units of the stock to push its net exposure to the crypto currency exchange on Nasdaq over $ 1 billion.

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