The general feeling of the market analyzed in social media is considered the most negative of the last two months.
After facing a week of decline and trading below $18,000, Bitcoin has gained strength and valued $1,700 (4.56%) in the last 48 hours. In Brazil the currency is traded in the range of $ 99 thousand.
The Bitcoin’s rise also boosted most of the altcoins, with several followed by the rise, except for the XRP, which is falling, going in the opposite direction of the market.
In the last 24 hours Bitcoin has exceeded the $ 19,000 barrier. At the time this text is written, the digital currency is traded for $19,300.24.
Despite the high, analysts expect that the situation may soon be reversed. The general market sentiment analyzed in social media is considered the most negative of the last two months.
An analysis by Santiment states that „panic sales“ (sales by people afraid of the currency falling further) were „predominant in the market, this happened after the flow in the brokers showed that the whales (big holders of the digital currency) transferred their funds to various exchanges to make profits“.
Therefore, the company concluded that Bitcoin is overvalued, that is, being traded at a price above the real value.
Traders are also expecting a new set of regulations that may soon emerge from the US Treasury Department. This should define where the price of digital currency goes.
Coinbase CEO Brian Armstrong is the one who revealed the rumors of the new rules. He said regulators would „require brokers to verify the recipient/owner of Bitcoin portfolios, collecting identifying information from the current owner and the recipient of any transfer,“ that is, extreme surveillance.
This, while heavy regulation, can be good for Bitcoin in the long run, as the currency is censorship resistant. The problem, however, is that currencies that are in exchanges are likely to be devalued as they are being tracked. One solution would be the use of mixers.
Messari CEO Ryan Selkis has also released information on regulation. He said that „unfortunately, he fears the worst because we live in an authoritarian world, and our 4th Amendment protections have been reduced to the point where they no longer exist.
However, the market is in a dilemma, with several experts saying that the cryptomoeda market needs regulation to thrive more and reach the whole world safely.