Bitcoin price falls ahead of Gensler discussion; IMF warning



© Reuters.

By Samuel Indyk

Investing.com – The price of was lower on Tuesday morning ahead of a virtual discussion at the Aspen Security Forum with the Security and Exchange Commission’s Chairman Gary Gensler. The chat, titled ‘The View from the SEC: Cryptocurrencies and National Security’, will see Gensler speak on cryptocurrencies with the Wall Street Journal’s Paul Vigna.

Gensler has previously indicated he has a strong interest in cryptocurrencies and blockchain technology but that does not necessarily mean he will go easy on regulation when it comes to the digital asset space.

“While I’m neutral on the technology, even intrigued—I spent three years teaching it, leaning into it—I’m not neutral about investor protection,” Gensler said previously.

Today’s discussion may provide further clarity on how Gensler and the SEC plan to protect investors who may be vulnerable to fraud and potential losses from the industry. Gensler is due to begin speaking at 17:15BST (12:15EDT).

IMF warning

Another potential reason for the drop in cryptocurrencies is a recent blog post from the International Monetary Fund (IMF) which warned about using crypoassets as a national currency, in an apparent nod to El Salvador.

Next month, the Central American nation is scheduled to allow Bitcoin as legal tender, but the IMF has warned of the threat to “macroeconomic stability” from widespread adoption of a cryptoasset, such as Bitcoin.

The report comes as the two parties are in discussions over a $1 billion loan, but there are fears that the adoption of Bitcoin could make the talks more complicated.

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Technical picture

After dropping back below $40,000 on Monday, Bitcoin continues to drift lower and today hit a low just north of $38,000.

The 100-day moving average has acted as resistance with today’s high just below that level around $39,700.

The next level of resistance to the upside could be the psychological $40,000 level before the recent high around $42,500.

To the downside, the July 27th low of around $37,300 could be the next support if $38,000 breaks.

For now, Bitcoin remains within its recent trading range of around $30,000-$42,000, with analysts looking for a clean break either way to confirm a breakout.

At 11:31BST, Bitcoin was trading around $38,600, down around 2.8% over the last 24 hours.

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