Since July 10, the bitcoin price has dropped from $13,200 to below $11,000 within less than a week as the crypto market saw a minor correction.
In a sharp pullback, the price of the dominant crypto asset slipped by more than 16.6 percent, leading the rest of the crypto market to lose its valuation relatively quickly in a short time frame.
Despite its recent correction, if the bitcoin price stays below the $11,000 level in the upcoming days, which has acted as an important support level for the asset, some traders expect the short term trend to turn bearish.
Bearish scenario for bitcoin
The sentiment around bitcoin and the crypto market, in general, remains mixed. Many investors have interpreted the statements of U.S. President Trump and Treasury Secretary Steve Mnuchin in varying ways.
As CCN reported on July 15, in an official briefing hosted at the White House, Secretary Mnuchin stated that FinCEN and other relevant financial authorities will tighten their oversight on the crypto sector.
“The United States has been at the forefront of regulating entities that provide cryptocurrency. We will not allow digital asset service providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities.”
“Treasury has been very clear to Facebook, to bitcoin users and other providers of digital financial services that they must implement the same anti-money laundering and countering financing of terrorism, known AMLCFT safeguards as traditional financial institutions.”
Some industry executives like Travis Kling, a former Wall Street portfolio manager and the founder of Ikigai Fund, said that the acknowledgment of bitcoin by Federal Reserve Chairman Jerome Powell and Secretary Mnuchin as a speculative store of value is a positive indicator.