Bitcoin (BTC) is starting a new week and still needs $ 11,000 in support due to the volatility of overall markets due to coronavirus and criminal banking activity.
The Cointelegraph identifies five factors that could influence BTC’s price movement in the coming days.
Banks to wash the face with water
As central banks grapple with drastic changes in US economic policy, new leaked files have shown more evidence of money laundering on a large scale.
A slew of documents from the Financial Crime Enforcement Network (FinCEN), called the FinCEN Files, reached investigative journalists around the world this month, and the main goal was clear: Illegal activities went unnoticed.
An example is HSBC, which has continued to flow funds through the accounts despite being notified of their criminal origin. Shares of the bank fell to their lowest level in 25 years on Monday.
Among the other discoveries is more activity linked to the Russian elite, which is using British banks to avoid Western sanctions.
Bitcoin supporters were quick to cite the irony of the situation, given the history of many banks in files that claimed Bitcoin itself was contributing to crime.
Two Hong Kong ads for Bitcoin and HSBC sarcastically summed up the status quo, and statistician Willie Wu tweeted:
“Be your own bank. The story continues. “HSBC knowledgeable!”
Meanwhile, central banks around the world continue to struggle with the downfall of the Coronavirus, and the European Central Bank (ECB) will meet this week to discuss its response – and the potential implications for the euro.
According to Cointelegraph, the Bank of England (BoE) is currently considering introducing negative interest rates for the first time in its history.
It stores how the coronavirus weighs
Asia opened on a weaker day on Monday, with Hong Kong’s Hang Seng Index dropping 1.5%, driven by HSBC, which was its lowest level since 1995.
A similar picture was observed in Europe, where the Stoxx Europe 600 was down 1.6%. In the US, S&P 500 futures are down 1% before the opening.
The United States is facing a large number of incidents as politicians try to agree on a new package of measures to confront the Corona virus as the elections approach.
This week, Fed Chairman Jerome Powell will speak to Congress after speaking last week about the impressive progress in the central bank’s economic policy, leaving many doubts about its capabilities.
“We are concerned that the markets are not responding well to some of the uncertainties we are facing – the options are probably related to Covid-19 and the fact that we do not yet have a stimulus package,” said Rebecca Felton, chief market strategist. At the global management company Riverfront Investment Group. – Bloomberg reported.
“I have to think that we can be uneasy about this defect.”
Any combination that impacts the strength of the US dollar is currently a boon for Bitcoin, as it continues to be negatively correlated with the US dollar index (DXY).
Over the course of the day, safe-haven gold rose 0.1% against the dollar, to $ 1,953.
Base Bitcoin is at an all-time high
There has been more good news for Bitcoin analysts looking at the strength of the network this week as the difficulty and hash rate remained high.
The difficulty, without a doubt, Bitcoin’s most important primary feature, increased by 11.35% in its last auto-switch on Sunday.
BTC.com estimates that the next change in 12 days will add another 10.2%.
The new growth potential highlights the fierce competition among bitcoin miners for block rewards – a bonus that remains infinitely constant at 6.25 BTC per block, regardless of the number of contenders.
Meanwhile, hash rate, an estimate of the total computing power allocated to the Bitcoin network, broke the latest record of 143 breaths per second (EH / s) on Saturday.
The popular theory is that bullish price increases follow fundamentals, and miners’ belief in Bitcoin’s long-term profitability is now evident.
Hard $ 11,000 on BTC
The BTC / USD pair maintained its distance over the weekend, failing to convert $ 11,000 into any support level.
The mixed behavior continued in the pattern last week, when Bitcoin managed to climb above the key support level to $ 10,000.