Bitcoin Traders ‘Edgy’ Over Coming Regulations
- Bitcoin fell as much as 5.9%, its biggest loss in almost a month, to as low as 5,247, it bounced and is now trading at 5,414.23, +42.00 or +0.78% on the day.
- Looks like the ‘edginess’ wore off quickly.
Bitcoin traders waiting for a pullback in the cryptocurrency price to rebuild positions in the world’s largest cryptocurrency’s price may have the US Commodity Futures Trading Commission (CFTC) to thank for Wednesday’s dip.
In a primer on the asset class published Tuesday, the agency said virtual “tokens” used in initial coin offerings can come under CFTC oversight, a message that a market adverse to scrutiny did not take well.
Bitcoin fell as much as 5.9%, its biggest loss in almost a month, to as low as 5,247, it bounced and is now trading at 5,414.23, +42.00 or +0.78% on the day.
Looks like the ‘edginess’ wore off quickly.
The US Securities and Exchange Commission (SEC) has already said tokens from some ICOs can be securities under its oversight.
“There is no inconsistency between the SEC’s analysis and the CFTC’s determination” from 2015 that virtual currencies are commodities, the CFTC said.
If September’s price dive is any guide, losses on bets that Bitcoin will fall within US regulatory jurisdiction could be short lived.
Bitcoin’s market action was quick to shrug off China’s move to tighten its grip on trading, extending an 8X increase over the past year to a record high of 5,866 on 13 October.