min to read

2019-09-27 13:13:07




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Bitcoin price crash strengthens SEC distrust in industry

The rapid fall in the price of bitcoin

min to read

2019-09-27 13:13:07

The rapid fall in the price of bitcoin in the last few days is a clear illustration of the concerns of the U.S. Securities and Exchange Commission (SEC). American lawyer Jake Cherwinski, who specializes in cryptocurrencies, wrote about it on Twitter.

The rapid fall in the price of bitcoin in the last few days is a clear illustration of the concerns of the U.S. Securities and Exchange Commission (SEC). American lawyer Jake Cherwinski, who specializes in cryptocurrencies, wrote about it on Twitter.

 

 

He pointed out the connection between the decline in the price of the first cryptocurrency and the increase in profits on unregulated offshore platforms with the possibility of margin trading.

 

“You're still wondering why the SEC has concerns?” Cherwinski added.

 

 

The lawyer noted that the problem of the SEC's distrust of bitcoin-based ETFs could be solved if the volume of trades is concentrated on regulated markets. Nevertheless, there are already many instruments operating in such markets, but volumes are still concentrated mainly offshore.

 

“They [platforms] profit from volatility, which leads to increasing volumes and liquidations. Calm markets do not bring them money.”

 

In his opinion, the SEC can perceive such things as manipulations and convince the agency of this, based on the data of technical analysis. But it will not work. The latter cannot fully explain the movements in the price of bitcoin, Cherwinsky concluded.

 

 

Earlier, the lawyer said that the chance of SEC approval of bitcoin-ETF from Bitwise does not exceed 0.01%.

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