Summary:

• Bitcoin slides below $8000 for the first time since mid-April, a technical view suggests more pain to come
• CFTC issues new guidance to all institutions being interested in listing Bitcoin futures and other crypto derivatives
• Federal Reserve member Neel Kashakri calls the cryptocurrency industry ’a farce’

Tailspin across financial markets has increased over the recent hours, and it has not left out virtual currencies as well. Even as US President Donald Trump expressed willingness to deliver more tax cuts by November this year (this is the time when midterm elections take place) investors did not buy it, and in effect there were notable drops in Asian stocks. Meanwhile, Bitcoin is also feeling the pain declining in early trading more than 2% as a risk-off mode is prevailing. Looking at the daily chart beneath the price is unlikely to find any support before long if today’s candlestick closes well below $8000. The nearest resistance is also supported by a 50% retracement of the swing since April solidifying its importance. Thus, a close below this point could open up the way for subsequent declines over the next days. Where to target once this scenario transpires? So, buyers with higher risk propensity could look for a turnaround at around $7700, but it does not look to be a strong level for them to be honest. Hence, should the ongoing decline extend it may morph into the much deeper correction with no relevant support until $6500 or so.

Bitcoin is breaking down its local support, and it manages to do so it may open up the way for fresh decreases possibly eyeing $6500. Source: xStation5

CFTC issues new guidance to all institutions being interested in listing Bitcoin futures and other crypto derivatives

The US markets regulator Commodity Futures Trading Commission (CFTC) issued its new guidance to exchanges and other trading platforms being interested in listing Bitcoin futures as well as other cryptocurrency derivatives products. The new guidance includes a set of the best practices to follow while developing and launching derivatives. The watchdog advises that all exchanges and similar trading venues must have the ability to monitor the integrity of the underlying spot markets that supply their pricing data, coordinate closely with CFTC staff, solicit comments from industry participants prior to launch, and engage in large trader reporting. As per the CFTC’s statement new regulations are meant to “aid market participants in their efforts to design risk management programs that address the new risks imposed by virtual currency products”.

Litecoin is also breaking through its support and it can look for $100 as its closest goal. Source: xStation5

Federal Reserve member Neel Kashakri calls the cryptocurrency industry ’a farce’

The president of the Minneapolis Federal Reserve Neel Kashkari is famous for his harsh remarks with respect to digital currencies, and he decided to remind us of it calling the cryptocurrency industry ’a farce’ during his speech at Bay College in Escanaba, Michigan. He focused of the proliferation of scams in the nascent cryptocurrency ecosystem admitting that “the barrier to entry to creating a new cryptocurrency is zero”. He summed up the speech adding “If you can dupe enough people to buy it, you can pretend that you’ve launched something. And you can say, ‘Look, I’m a billionaire because I sold you one. And I own the other 999 million of them, so that means I’m a billionaire! So it has become a farce…I’m seeing more noise and more fraud than I’m seeing anything useful”.