Bitcoin slides to $63,000 as the cryptocurrency market faces increased regulatory pressure in the United States

• Digital assets posted mixed performances, with BTC falling 1.5% while Solana’s SOL and XRP gained the most among the crypto majors.

• Robinhood has revealed that its crypto arm has received a warning from the SEC that could foreshadow enforcement action.

• An Elliot Wave technician sets a $92,000 price target for bitcoin’s next cycle high.

The cryptocurrency rally stalled during U.S. trading hours on Monday, with bitcoin {{BTC}} falling back to nearly $63,300 as U.S. regulators ramped up pressure on crypto firms.

The move above $65,000 early on Monday quickly reversed and prices came under further pressure after popular brokerage Robinhood (HOOD) disclosed. has received its crypto arm a Wells notice over the weekend from the U.S. Securities and Exchange Commission (SEC), a move that often foreshadows enforcement action against a company.

The pullback was shallow, however, with most crypto assets firmly above last week’s low. BTC has fallen 1.5% in the past 24 hours, but is still up more than 10% since Wednesday.

Alternative cryptocurrencies performed mixed, with ether {{ETH}}, dogecoin {{DOGE}}, shiba inu {{SHIB}} and Polygon’s native layer-2 network token {{MATIC}} falling by 2%-3% during the day, while solana {{SOL}} and Ripple-adjacent XRP showed a relative advancing strength of 4%-6%. The broadest market indicator CoinDesk 20 Index (CD20) fell 0.3%.

Despite the stalled rally, crypto hedge fund QCP Capital noted renewed demand for September bitcoin call options with strike prices of $75,000 and $100,000, underscoring growing optimism that BTC will rise to higher prices in the coming months. months.

“We are seeing some bullish consequences of volatility and [funding] rates after the rebound reversal from Friday into the weekend,” crypto hedge fund QCP Capital said in a market update on Monday.

Hong Kong ETF Rumors

Perhaps fueling the rapid recovery from last week’s lows were rumors about expanding access to recently listed Hong Kong spot bitcoin and ether ETFs for Chinese investors.

Richard Byworth, managing partner at Syzcapital, said in a post on Hong Kong.

In theory, the move would have a significant impact by opening the floodgates for Chinese money to seek alternative assets amid the housing and stock market rout.

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However, Chinese investors have been banned from accessing crypto ETFs and there has been no official communication on the rule change.

To know more: Hong Kong-listed Bitcoin ETFs could unlock up to $25 billion in demand, a cryptocurrency firm says

BTC aims for $92,000, but the bottom may not be reached

Bitcoin closed last week on a bullish note, recovering quickly from the pullback to $56,000. John Glover, investment director at lender Ledn, said there was still the possibility of a price collapse before ending the correction from March’s all-time high of $73,000.

“Although the drop to $56,500 may have completed the correction, I still expect to see a price of $52-55,000 before wave 4 completes,” Glover said, referring to Elliot Wave theory, a technical analysis that assumes asset prices move repetitively. wave patterns.

The theory holds that price trends develop in five phases, of which waves 1, 3 and 5 are impulse waves representing the main trend, while waves 2 and 4 are retracements of impulsive price action.

“Once [corrective] When the wave is completed, I expect a push from Wave 5 to around $92,000 to follow,” he concluded.

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