Bitcoin prices continued their downward trend as markets absorb the ongoing investigation by the U.S. Justice Department (DOJ) into the manipulation of the cryptocurrency. But the worst may be over…
The agency is working with the Commodity Futures Trading Commission (CFTC) to determine whether some traders used fake orders and other price-manipulating strategies in order to move the price of Bitcoin.
While the scandal is weighing on cryptocurrency traders, the news isn’t all bad.
Billionaire and cryptocurrency investor Mike Novogratz said the DOJ investigation is a positive development that will help contribute to the long-term health of the markets.
“Weeding out the bad actors is a good thing, not a bad thing for the health of the market,” Novogratz said in an interview with Bloomberg. “Plenty of exchanges have these inflated volume numbers to create some sense of excitement around coins.”
Plus, Bitcoin prices are still above their lower resistance level, which has provided key support over the last month. We fully expect Bitcoin to stay above its resistance line and recover once traders put the scandal behind them.
Here is a recap of the top five cryptocurrencies by market cap as of 12:00 p.m. EDT.
|Cryptocurrency||Market Cap||Price||Change (24h)|
|Bitcoin Cash (BCH)||$17,656,475,984||$1,029.71||0.11%|
Now here’s a closer look at today’s Money Morning cryptocurrency insight, as well as the most important cryptocurrency updates you need to know…
Money Morning Insight of the Day
Even though BTC prices have dropped 40.48%, from $14,112.20 on Jan. 1 to $7,504.02 today, we aren’t worried.
Massive Upgrade Could Send Bitcoin to $100,000 – Click Here to Learn About the Opportunity That Could Deliver a Million-Dollar Payday to Investors Who Act Now
Yes, if you jumped in around January and have watched the Bitcoin prices plummet, you might be tempted to cut your losses.
That could be a costly mistake…
In fact, we’re anticipating a change to Bitcoin’s network that could be a game changer.
The Top Cryptocurrency Stories for Friday
- The big news in the cryptocurrency market didn’t come from Bitcoin. It came from a major philanthropic gift from actor and investor Ashton Kutcher to television host Ellen DeGeneres. Kutcher donated $4 million in Ripple to DeGeneres’ Wild Life Fund during a live episode of her show on May 24. Kutcher was joined by his business partner Guy Oseary, who is also a manager to several major music and film stars. During the transfer, Kutcher displayed the ease of use of Ripple, as the cryptocurrency was transferred live into Rwandan francs. DeGeneres had previously tried to explain Bitcoin and other cryptocurrencies on her show in the past, explaining “nobody knows how it works.”
- Meanwhile, the central bank of South Africa has made a ruling on cryptocurrencies. The South African Reserve Bank has classified cryptocurrencies like Bitcoin as “crypto-tokens” instead of currencies. For this reason, the SARB argues that Bitcoin and others fail to “meet the requirements of money.”
- Markets still appear to be disappointed by the progress of institutional investors entering the cryptocurrency space. Even though Goldman Sachs (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) have taken steps to increase their exposure in the industry, broader institutional demand remains tepid.
- Finally, cryptocurrency crime continues to accelerate. Since 2017, roughly $1.2 billion in cryptocurrency has been stolen, according to the Anti-Phishing Working Group (APWG). Just 20% or less of these stolen cryptocurrencies has been recovered.
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