Bitcoin tested the Fibonacci 23.6 level on Monday and has reversed its retreating after dip on US inflation data last Thursday by retracing up. Bitcoin is on its way to test the Fibonacci 38.2 at about $46665 – that is the next resistance level!
Hungary’s central bank head call on EU to ban crypto mining and trading ran under crypto market news radar last Friday. The governor of the Hungarian National Bank said he agreed with the Russian central bank’s earlier proposal to ban crypto activities on the grounds that it could “service illegal activities and tend to build up financial pyramids.”
If this trend continues and other EU monetary authorities take a negative view on cryptocurrency market investments the crypto market will suffer further bearish pressure. Just today the Financial Stability Board (FSB), an international organization that monitors and makes recommendations for the global financial system, published a report stating crypto could derail financial stability. FSB is funded by the Bank for International Settlements, the umbrella group for central banks. As a possible scenario of financial sector destabilization FSB mentions “ liquidity within the broader crypto-asset ecosystem (including in DeFi) could become constrained, disrupting trading and potentially causing stress in those markets” as well as short-term funding markets if a major stable coin fails.
