The Securities and Futures Commission (SFC) of Hong Kong has recently announced its plans to regulate crypto exchanges. Due to this, the whole crypto market led to a downturn, and just like other cryptos, Bitcoin plunges below $13,500. Ethereum is also going through the same phase as it also dives down below the $380 level. It is believed that if the condition remains the same, it will enter into the bearish narrative and might go down below the $370 mark.
Moreover, it is revealed that all the crypto exchanges based in Hong Kong will now be operating under the regulation of SFC. Ashley Alder, CEO of SFC, has revealed the new regulation directives on November 03, 2020, in a speech. It is believed that the major reason behind the new regulations is that several platforms are quite away from the radar of the regulators. SFC regulations will also cover those platforms which are not even trading securities.
Many have claimed that this step might be because of the growing crypto scams in the present time. In the wake of the COVID-19 pandemic, a huge number of the population have moved towards cryptocurrency and the security of users’ funds is the utmost priority of the regulator. Now, the crypto exchanges might be having many restrictions as well, which is one of the major reasons why Bitcoin plunges below $13,500. There are claims that the fall might even go beyond this.
Before the recent plunges, Bitcoin has performed really well and the price was going upwards. However, this recent announcement by SFC might prove to be a nightmare for all those bullish predictions. The chart claims that if Bitcoin is unable to remain above the 50 Simple Moving Average then it might even touch the $13,000 mark.