Cue The Sad Trombone For Bitcoin
Dear Rundown Reader,
The U.S. Department of Justice is busy these days.
There’s Trump’s “Spygate” investigation.
They’re looking closely at a number of proposed mergers and acquisitions.
They have to deal with Wells Fargo and Qualcomm.
And now they’re now coming after crypto. Bitcoin specifically.
As such Bitcoin, is on a major downswing.
The crypto bears are winning 2018.
Today we try and make sense of the madness.
Your Rundown for Thursday, May 24, 2018…
The DOJ Is Going Whale Hunting
Bitcoin, and big bitcoin traders are under investigation by the U.S. Department of Justice.
The investigation, as reported by Bloomberg, is a criminal one to see if traders are manipulating the price of Bitcoin and other cryptos.
This is a new development that could seriously upend the space.
Investigations by the SEC and other government agencies here and abroad are nothing new to the crypto narrative.
But for the most part, these investigations targeted exchanges, small individual holders, and ICO scams.
The DOJ’s new investigation, according to ZeroHedge, specifically targets the biggest bitcoin traders, aptly known as whales accused of “spoofing.”
According to CoinDesk, spoofing is “a technique that has been used in traditional financial markets to affect price movements by making large volumes of fake orders — that possibly influenced trades of bitcoin and ethereum.”
And the news is shaking up the crypto landscape.
According to CoinMarketCap.com, the king crypto is down 7.29% over the past 24-hours.
In the past three days, Bitcoin is down 16%. Here’s the chart:
Bitcoin’s market cap sits at over $125 billion. A 24-hour, 7% slide like yesterday’s cost bitcoin owners billions.
$8,755,692,854 to be exact.
When that much money goes bye-bye, it worth noting.
Bitcoin and cryptos appear to be a sinkhole right now.
Earlier in the week at an editor’s lunch, the idea was kicked around that $8,000 could be Bitcoin’s new support level.
Well, the coin smashed through that floor and now sits at $7,341 as we write this morning.
So much for that theory. Maybe $5,000 is a secondary support level?
Yes or no, one thing is clear… If you’re not a whale yourself, or rolling in a ton of extra cash, stay away from Bitcoin right now.
Or, as our Chief of Technology Ray Blanco notes, “if you’re looking to play the crypto space blockchain is the best way to go.
Because while the DOJ and other agencies from D.C. to Seoul crack down on crypto, institutions like IBM, JPMorgan, and the NYSE are secretly working on their own forms of blockchain networks.
We kid you not. More on that another day.
Now, turning to the markets this morning…
Market Rundown for Thurs., May 24
Yield on the 10-Year Treasury sits at 2.99% this morning, down 0.026.
S&P 500 futures are down 2.25 at 2,728.
Oil’s down $0.84 to $71.00.
Gold’s up $5.60 to $1,295.
Bitcoin, as we noted earlier goes for $7,341, this morning, according to CoinDesk.
We’ll talk again on Friday.
For the Rundown,