As money laundering prevails at the banking sector once again, and as coronavirus ruins the stock market, Bitcoin battles with $11,000. There are five things to watch in Bitcoin this week as HSBC stock hits 25-year lows.
Because of banks’ criminal activities and coronavirus, Bitcoin (BTC) begins a fresh week still watching for $11,000 support.
This article emphasized five factors that could influence BTC price action in the days ahead.
Banks face money laundering deluge
Central banks experienced notable changes in the United States economic policy. However, more evidence of largescale money laundering was shown in newly leaked files.
Throughout this month, investigative journalists put their hands on a massive pile of documents from the Financial Crimes Enforcement Network (FinCEN). Moreover, it is clear that the focus is illegal activities goingunnoticed.
For instance, despite being notified of their criminal origins, HSBC kept allowing funds to move through its accounts. On Monday, the bank’s shares were down to 25-year lows.
In Hong Kong, there were two advertisements for HSBC and Bitcoin which ironically summarized the status quo. In connection to this, statistician Willy Woo tweeted:
Stocks down as coronavirus weighs
On Monday, trading in Asia became weak. Due to HSBC shares hitting their lowest since 1995, the Hong Kong Hang Seng Index was down 1.5%.
Similarly, Stoxx Europe 600 was down 1.6%. Moreover, S&P 500 futures were down 1% in the United States before the opening bell.
Politicians in the U.S. are having a hard time agreeing on a new fresh coronavirus stimulus package and elections come nearer
Bitcoin fundamentals hit new all-time highs
Bitcoin analysts are watching for network strength this week. That is because the hash rate and difficulty remained at all-time highs.
On Sunday, there was an automatic readjustment and because of this, the difficulty which is Bitcoin’s most important fundamental feature has increased 11.35%.
There was a well-known theory that implies fundamentals are followed by price bullishness. Furthermore, it is now clear to see the miners’ belief in Bitcoin’s long-term profitability.
$11,000 proves tough for BTC
Over the weekend, BTC/USD remained rangebound. Moreover, it failed to flip $11,000 into any form of a support level.
From last week, the ranging behavior stretched a pattern. Nonetheless, from fundamental support at $10,000, Bitcoin managed to go higher.
Michaël van de Poppe, a market analyst, said that Bitcoin will remain in the $10,000 zone for the time being as a result of keeping $11,000 and the higher $11,200 as resistance. He stated on a tweet:
On Sunday, there was rejection at just below $11,200, fulfilling the prophecy.
Investors recover from “fear” of $9,800
The well-known Crypto Fear & Greed Index metric said that investor sentiment is broadly recovering from the drop below $10,000.
Bitcoin previously hovered around $12,000. Moreover, it measured almost its highest score ever. The creators are saying that the market is due for a correction.
There was a sense of overselling once that happened. As a result, the index is now at its current reading due to slowly balancing out.