Bitcoin And Ethereum Price Forecast – BTC & ETH Hit News Lows as Regulatory Crackdown Limited Participation of Retail Traders Resulting in Low Volatility

Price action of BTCUSD pair in the past 24 hours show that bears still remain in control of momentum as the pair saw sharp fall as it failed to breach resistance around $4200 handle despite repeated attempts which resulted in another sharp decline and testing new 2018 lows at $4142.21 mark post which the pair has now rebound back above $4300 handle. The sharp slide of legacy crypto currency instruments which nearly erased 30% of market cap in less than one week has resulted in many players of crypto industry closing shop and selling of what was left for cheap rates in order to recover investment as the cost to hold and operate has escalated considerable resulting in loss of over 50% to many participants as they ran business by selling coins on daily basis.

Lack of Volatility in Market & News of Vulnerability of ETH Blockchain Inspired Bearish Price Action

While crypto industry is already struggling over the sharp fall, many governments and regulatory authorities have taken up matters in their hands with audits of transactions in past year to identify money laundering activities and regulatory authorities cracking down on brokerages that didn’t comply with acceptable business standards and tax departments requesting details of crypto based assets to be declared under income tax while some other countries ban crypto currencies or removed subsidies that indirectly helped crypto industry survive such as electricity bill subsidy for data centers which were in reality used by crypto miners in Norway resulting in more and more participants across the globe abandoning crypto industry.

Such a situation is highly bearish for crypto currency industry and legacy crypto currencies such as bitcoin and ethereum which usually benefited in terms of volatility via such users who traded their coins from mining and other transactions will now see considerably reduced activity. As retail users suffered significantly over the sudden drop which resulted in considerable loss of investment, BTC/USD & ETH/USD pairs will see subdued price action in near future. However there may be short spell of bullish price action if crypto ETP scheduled to debut in Swiss SIX exchange has a positive reception. Similar to Bitcoin, Ethereum also hit new lows today as news about the major vulnerability on Ethereum blockchain added pressure on the third largest coin by market value.