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Cryptocurrency index slumps, Bitcoin cracks pivotal support

12:12 PM January 10, 2019

Summary:

  • Bloomberg Galaxy Crypto Index declines more than 7% today

  • European Banking Authority (EBA) advises European Commission to assess common crypto approach

  • Bitcoin breaks below its crucial technical line

Major virtual currencies entered Thursday’s trading with substantial declines with Bitcoin falling more than 5%. As a result, the Bloomberg Galaxy Crypto Index has slid almost 8% so far today. Since the peak made in December 2017 the index, which tracks cryptocurrencies such as Ether, Litecoin, Ripple or Bitcoin, fell as much as 84%. Today’s massive drop was not caused by any particular reason, according to Timothy Tam, co-founder and CEO of CoinFi, a cryptocurrency research firm in Hong Kong. However, he noticed a large transfer of about 40k Ether into an exchange an hour before the drop, as Bloomberg reports. In a message he says that “Usually transfer of Ethereum onto an exchange indicates an intent to sell, and if there is a sell-off on one exchange it compounds like dominoes to another because arbitrageurs will sell immediately on the other exchanges as well.”

The Bloomberg Galaxy Crypto Index is down more than 80% from its peak in December 2017. Source: Bloomberg

According to a report released by the European Banking Authority (EBA), a regulatory agency of the European Union, it could be reasonable to take a common crypto approach at the European level. In the report published yesterday the EBA examines the application of current EU banking, payments, e-money and anti-money laundering laws to crypto assets, wallet providers and trading platforms, as well as the related activities of credit institutions, investment firms, payment institutions and electronic money institutions. The banking agency also sees a need for a review of EU anti-money laundering legislation.

Bitcoin broke below the lower bound of the triangle pattern suggesting the price could be falling toward $3130. Source: xStation5
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