Bitcoin never managed to visit the 200-day average during the last rally we saw take the Crypto from 6k to slightly north of 8k. We are seeing Bitcoin drop further today, even after the relatively big fall yesterday, as it trades down to the 50-day average currently.
After the massive correction from the mania highs, we see Bitcoin needing to undergo a big consolidation phase. That means trading in a wide range but without any meaningful trend.
Latest out of local authorities from South Korea are quotes like:
“….cryptocurrency transaction brokerage is not effective in generating added value.”
“We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.”
If Cryptos add value is to be debated but they sure use a lot of electricity to mine them. From a Wired article published yesterday:
“For this mechanism to survive and thrive it can’t continue consuming this level of electricity,” says Davies. “There are a lot of alternative frameworks that provide for the same level of functionality for less energy. There are lots of central banks around the world looking at working with cryptocurrency – this electricity tussle should help them decide what will work and what won’t work.”
Source: chart by Bloomberg
Full article here.