Bitcoin has staged an impressive rebound after flash crashing to $334 on Monday. Prices rallied 43 dollars on Tuesday and a further $27 on Wednesday, closing right at the $500 mark. In the early Asian trading session today, BTC continued the move up to hit $528 per coin.
It is unclear where bitcoin will go from here. Since we managed to clear the $500 hurdle, prices should remain supported by this figure, at least in the near term. This is barring any external price shocks of course. A breakout above the resistance at $550 may trigger a new rally in the crypto. A technical breakdown below this previous support level was the catalyst for the losses we saw during the past week.
Negative Reactions to Proposed NY Rules Continue
The negative reactions from firms working in the bitcoin space to the proposed rules by the NYDFS (New York Department of Financial Services) continue. The founder of Coinsetter, Jaron Lukasiewicz, was quoted as saying that: ‘’It just doesn’t fit with the technology, and it’s impossible to comply with the proposed disclosure rules. I think it’s also a complete invasion of privacy.”
Jaron’s comments come just a few days after Circle’s CEO Jeremy Allaire wrote a long blog post about the proposed regulation. Allaire says that the new rules will radically limit those who can participate in this industry and added that if adopted as is, Circle will have no choice but to block customers from New York. The three major points of contention for the Circle CEO are:
- The scope of the BitLicense proposal is too broad and specifically targets software companies, open source projects and open intellectual property.
- BitLicense imposes a range of requirements over key business decisions, limiting discretion
- AML requirements are over reaching and go beyond Federal law
Circle is a digital currency company headquartered in Boston, Massachusetts. Its aim is to allow consumers to easily convert, store, send, and receive bitcoins. The company’s offer is still in invite-only stage and not open to the public. The firm has so far raised about $28 million in two funding rounds.
Peercoin Rallies 70 Percent, Parity Eyed
Peercoin has rallied close to 70 percent from the $0.565 low reached on Monday. The altcoin fell to new lows following big brother bitcoin downward. We are currently trading at $0.952, just shy of the $1 parity level.
Given the extent of PPC rally in the last 3 days, I don’t expend the crypto to go over $1 soon. The parity level itself may act as a significant hurdle to more gains. On the contrary, we may see a retracement as the move up from $0.565 to $0.993 happened with no major pullback in between.