Good morning and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime.
Another morning of losses for the crypto market, as most digital tokens tumble below resistance.
Bitcoin lost 4.24 percent on the day, trading at $7,353.07, while Ethereum lost 4.22 percent to trade at $403.83.
Ripple dropped 1.10 percent to go for $0.437672, and Litecoin fell 3.36 percent to sell for 475.32.
Despite the losses, many experts are expecting bitcoin to rally back, with traders just waiting for a lower price to jump in on.
UBS, one of the biggest banks in Europe, says bitcoin and other digital tokens could replace the US Dollar as a global currency.
In a new 34-page report, the bank says the leading cryptocurrency is a contender for replacing the US dollar if its price or its network capacity reaches a certain level.
According to Bloomberg, the report states that in order for “Bitcoin to replace U.S. money supply — paper bills, coins, travelers’ checks and the like — it’s price could need to hit nearly $213,000, or its network’s processing capabilities would need to dramatically improve.”
The report says:”Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.”
One of the four Securities and Exchange Commissioners (SEC) has said she sees no reason to not allow bitcoin exchange-traded funds (ETF) to go ahead.
SEC Commissioner Hester Peirce says she has an important role to play in “telling the United States and the world that our capital markets are open to innovation.”
Peirce has been open on her thoughts that greenlighting a bitcoin ETF would “increase opportunities for investors.”
The other three commissioners are all openly opposed to allowing the Winklevoss Bitcoin ETF proposal to be sanctioned, but Commissioner Peirce said: “I take the position that actually the change that was put before us was consistent with the Exchange Act so there’s no reason for us to not allow this product to go ahead.”
Should the ETF be approved, bitcoin prices are expected to skyrocket, as general investor confidence increases.