BTC, ETH Lower as Powell Claims There Are ‘Structural Issues’ With Cryptocurrency – Market Updates Bitcoin News

Bitcoin was back in the red on Wednesday, as U.S. Federal Reserve Chair Jerome Powell called for more regulation in decentralized finance (defi), citing “structural issues” as a key reason. As a result, the token dropped below $19,000 in comments. Ethereum also slipped following yesterday’s rebound, with the price back below $1,300.

Bitcoin

Bitcoin (BTC), was back in the red after Wednesday’s market reaction to Jerome Powell’s comments.

Speaking on Tuesday evening, Powell stated that more regulation is needed in the crypto market, with recent declines in price highlighting “structural issues.”

In his comments, Powell said of the current relationship between defi and traditional finance: “Ultimately that’s not a stable equilibrium and we need to be very careful about … how crypto activities are taken within the regulatory perimeter.”

The remarks led to BTC/USD falling to an intraday lowest of $18,553.30 in the early part of the session. It was just a day after reaching a peak at $20,338.46.

As a result of today’s sell-off, bitcoin moved closer to its key support point of $18,300. The bulls have responded by pushing bitcoin away from this level.

BTC currently trades at $18,976.35, suggesting that traders have now closed their shorts. This suggests some bullish sentiment.

Ethereum

Bitcoin wasn’t the only token impacted by Powell’s comments, with ethereum (ETH) also trading lower in today’s session.

The world’s second largest cryptocurrency fell to an intraday low of $1,267.87 on Wednesday, hitting a one-week low in the process.

After a series of bearish sessions in the last fortnight, ETH/USD recently entered consolidation territory.

This chart clearly shows the difference between a support level at $1,230, and one that is resistant to $1,300.

This sideways action seems to have helped curb bearish momentum. The 10-day moving average (red) appears to have reached a bottom.

This would indicate that there will be more consolidation and the potential for an October rally.

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Eliman Dambell

Eliman has a unique perspective on market analysis. He was previously a retail trading teacher and brokerage director. He currently acts as an analyst for various asset types, such as Crypto, Stocks, FX.