There are reports from Bloomberg that European Finance Ministers will discuss crypto regulations September 7th in Vienna, 5 days from now. The outlook looks poor according to a draft prepared for the meeting. It includes a general lack of transparency and also crypto’s potential to be misused for money laundering, tax evasion and terrorist financing. Typically I have little faith in the effect of general news on price aside from an ETF verdict. I believe much of the movement we see is manipulation. However, regulation has had a strong effect on crypto in the past and was a factor in its recent decline. In the long run regulation will be crucial in giving people confidence to trust cryptocurrencies.
Bad press from Vienna could spark the selling to bring us sub $5,500. I still believe we could see some positive price action over the coming days as we test a long term resistance at $7,800 – $8,000. Sub $5,500 has yet to happen this year and is price I will be buying at.