Bitcoin Dips Under $69K Amid War and Regulatory Worries
The war in Iran and policy battles in Washington continue to hinder cryptocurrency prices.
Bitcoin, the world’s most popular cryptocurrency, fell below $69,000 on Sunday (March 22), its lowest level since the month began.
It has fallen 20% since the U.S/Israeli attack on Iran began Feb. 28. One month later, the conflict shows little sign of abating, with President Donald Trump threatening to bomb Iranian power plants if the county did not reopen the critical Strait of Hormuz to shipping. Iran has said it would respond by attacks on American and Israeli outposts in the Middle East.
This downturn continued a decline that started in October of last year, just after bitcoin hit its highest-ever price.
A report on the trend by Bloomberg News argued that the decline has shown the limits of the belief that bitcoin offers a safe haven for investors in turbulent times.
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Peter Tchir, head of macro strategy at Academy Securities, told Bloomberg there are other factors at work. For example, bitcoin is being caught up in a larger stock selloff. Higher energy prices could also be a factor, as this makes it more expensive to mine crypto.Advertisement: Scroll to Continue
“Much of the recent gains to me seem to have been bets on legislation, which is probably getting harder to pass — D.C. is focused on war, and lately, the new legislation hasn’t led to the buying mania from newbies that the crypto community seems to expect,” Tchir said. “It does seem like risk is increasing again.”
Industry observers had hoped that new joint guidance from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on applying securities laws to crypto tokens might help boost prices.
As PYMNTS reported, that guidance classifies crypto tokens into five categories: digital collectibles, digital commodities, digital securities, digital tools and stablecoins.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” SEC Chairman Paul S. Atkins said in a news release last week. “This is what regulatory agencies are supposed to do: draw clear lines in clear terms.”
The $75,000 threshold is a “key resistance level” for the token, as Coindesk said in a report on the regulators’ action last week.
“On the upside, $75,400-$76,000 continues to act as resistance,” Vikram Subburaj, CEO of India-based crypto exchange Giottus, told the news outlet. “Bitcoin needs to hold above this range to signal stronger momentum.”
