Hello traders everywhere. Bitcoin experienced one of the most significant daily price losses of the year losing over -13% on Tuesday, its second-biggest daily loss of the year. In turn, that triggered a new red weekly Trade Triangle indicating that we are now in a sidelines position based on the intermediate to long-term strategy. In the short-term, this could be viewed as a switch from a bullish market to a bearish market for Bitcoin.
Why the sudden move lower? I believe it can be directly attributed to the growing calls for regulation of Facebook's Libra project and cryptocurrencies in general. Facebook's plan came under attack at a U.S. hearing this week, with senators calling the company delusional and untrustworthy. They also questioned the social media giant on how it was planning to prevent money laundering. And, a week ago, President Donald Trump called for banking regulation on bitcoin and Facebook's Libra.
Now many in the investor community are beginning to worry that Facebook's Libra project will end up fast-tracking regulations for the crypto market.
What do you think? Will this move by Facebook fast-track crypto regulations?