ADVANCEMENTS IN THE CRYPTOCURRENCY WORLD

FIRST MOVER ASIA: BITCOIN MIGHT TEST $20K AS IT LOOKS FOR SUPPORT

Prices: Bitcoin might test $20,000 or below, but there's still reason to be bullish about the world's largest digital asset.

Insights: The Securities and Exchange Commission's move against Kraken's staking program isn't an attack on staking as a whole.

Bitcoin Is Seeking Support

As Asia started the work week, the CoinDesk Bitcoin Price Index (XBX) fell to $21,750 and ether is down 1.8% to $1,514.

Joe DiPasquale of BitBull Capital says that bitcoin is now making an “underside test” having already lost the $23K and $22K levels that will determine if it will reclaim the $23K mark or fall to $20K “rather quickly.”

“The market is also reliant on macroeconomic developments, and given how December consumer prices were found to be higher than previously expected, the market may start to consider a bigger rate hike in the next FOMC,” he told CoinDesk in a note.

In looking for support, bitcoin is also digesting regulatory developments. Last week, Kraken –but not Coinbase – was fined $30 million by the Securities and Exchange Commission (SEC) for its staking program. The Wall Street Journal also reports that Paxos is next on the SEC’s hit list as it targets the Binance USD stablecoin.

“Regulations are also a concern for the crypto space, especially after the $30 million fine the SEC imposed on Kraken exchange,” DiPasquale said. “That being said, we believe it is better to get regulatory clarity in a slow market, as opposed to stricter developments during a full-fledged bull market.”

Despite all this, DiPasquale said his firm remains bullish on bitcoin – even if it blows through support levels.