Cryptocurrencies are under pressure, with the leading coins all taking a nosedive. Bitcoin BTC (-5%), Ethereum ETH (-5.8%), and Ripple XRP (-8%) are deep into the red. For the third trading week of June, it looks like crypto players have once again taken a bearish stance over the weekend.
Unfortunately for digital currency bulls, the week has begun with more news of regulation. The People’s Bank of China (PBoC) made headlines earlier today, stating that all Chinese banks must stop facilitating crypto transactions. According to a report from Coindesk, the PBoC has said that banks are no longer permitted to “provide products or services such as trading, clearing, and settlement for crypto transactions.” This is a major regulatory step and comes on the heels of several recent high-profile bans on crypto mining in mainland China.
As always, regulatory actions are bearish crypto market drivers. The news out of China is certainly that and has sent the price of Bitcoin, Ether, and Ripple south very quickly. If the PBoC’s move becomes a global trend, these markets may be up for major corrections.
Ripple Plummets Beneath $0.75
It’s no secret that Ripple XRP has been struggling to maintain market share over the past few months. Prices are well off early-2021’s highs and headed lower. For now, it looks like the big-round-number of $0.50 is next up for a test.
Overview: This morning’s weakness in cryptos is bringing several key technical areas into play. Moving forward, $30,000 for BTC, $2,000 for ETH, and $0.50 for XRP are all shaping up to be important technical areas. While each of these coins are in long-term bullish territory, there is good reason to have a short-term bearish bias. With the regulatory situation continuing to evolve, it looks like cryptocurrency players are reevaluating the market and what the long-term crypto environment will be before adding risk to the equation.