We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Trader tip: Not making a decision means avoiding #FOMOintrading. @IlyaSpivak https://t.co/PGD0n13D9p
  • Easing trade tensions provide tailwinds for equity markets. Get your update form @JMcQueenFX here: https://t.co/79q553DJNa
  • Here's a link to my technical outlook for the Dollar this week: 'US Dollar Facing Measured Breakout and In Its Long Grind Higher' https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/22/US-Dollar-Facing-Measured-Breakout-and-In-Its-Long-Grind-Higher.html?utm_source=Twitter&utm_medium=Kicklighter&utm_campaign=twr
  • RT @business: A senior official from the Bank for International Settlements has added his voice to those calling on governments to back up…
  • RT @JimPethokoukis: “The recent rise in trade policy uncertainty is extraordinary by several metrics ... much evidence points to negative e…
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/JxyCkhOHSS
  • What is the biggest obstacle a trader needs to overcome to be successful? Find out from @JWagnerFXTrader here: https://t.co/7nWHSApUzS #FOMOintrading https://t.co/vXfEWo58RY
  • OECD warns of recession, central banks unleash, and the $USD builds breakout pressure. Get your update from @JohnKicklighter here: https://t.co/UKg6wfl8PB
  • What are the 6 common mistakes traders make? Is #FOMO a common mistake? Find out from @PaulRobinsonFX here:https://t.co/B7hOpGEHMp #FOMOintrading https://t.co/WOYk6lOJur
  • All currencies are not the same; emerging market #FX trades differently than developed market FX. Find out how these currencies differ, from @CVecchioFX here: https://t.co/BH8oal18sz https://t.co/IvomjZw0Bc
Cryptocurrencies Under Increased UK Regulatory Scrutiny

Cryptocurrencies Under Increased UK Regulatory Scrutiny

2018-10-30 11:30:00
Nick Cawley, Analyst

Bitcoin (BTC), Ethereum (ETH), Ripple (XRP): Prices, Charts and News

  • UK Cryptoasset Taskforce warns of ‘substantial potential risks’.
  • Cryptocurrencies fade lower in thin market conditions.

UK Regulator Releases Cryptoasset Update

The UKCryptoasset Taskforce -consisting of HM Treasury, the Financial Condust Authority (FCA) and the Bank of England – has released a paper warning that there are ‘substantial potential risks associated with cryptoassets, and the most immediate priorities for the authorities are to mitigate the risks to consumers and market integrity and prevent the use of cryptoassets for illicit activity'. The report concludes that strong action should be taken ' to address the risks associated with cryptoassets that fall within existing regulatory frameworks’.

The report adds that the authorities will consult on, among other areas,

‘a potential prohibition of the sale to retail consumers of derivatives referencing certain types of cryptoassets (for example, exchange tokens), including CFDs, options, futures and transferable securities’.

Market reaction to the report saw cryptocurrencies shed 3%-5%, pushing some coins back to noted support levels and the overall market capitalization to just above $200 billion, a six-week low. The cryptocurrency market has traded in a tight range over the last few weeks and volume remains low.

Bitcoin (BTC) currently trades around $6,250, just above horizontal support at $6,110, a break of which would open the way back to the August 15 low at $5,887. Bitcoin is below all three moving averages.

Bitcoin (BTC) Daily Price Chart (June – October 30, 2018)

Cryptocurrencies Under Increased UK Regulatory Scrutiny

Ethereum (ETH) is back below $200, and all three moving averages, and is eyeing support at $186.5 ahead of $167.6.

Ethereum (ETH) Daily Price Chart (June – October 30, 2018)

Cryptocurrencies Under Increased UK Regulatory Scrutiny

Ripple (XRP) is not immune to the sell-off and trades around $0.44, sharply lower than the September 21 ‘spike-high’ of $0.77. Support is seen at $0.427 ahead of $0.375. Ripple also trades below all three moving averages.

Ripple (XRP) Daily Price Chart (June – October 30, 2018)

Cryptocurrencies Under Increased UK Regulatory Scrutiny

We will take a more in-depth look at the UK proposal in our Weekly Cryptocurrency Webinar on Wednesday.

Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars

If you are interested in trading Bitcoin, Bitcoin Cash, Ethereum, Litecoin or Ripple we can help you begin your journey. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account so you can practice trading this volatile asset class.

IG Sentiment Data show how retail traders are positioned in various cryptocurrencies and how changes in daily and weekly holdings can affect market sentiment.

What’s your opinion on the cryptocurrency market? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.

--- Written by Nick Cawley, Analyst.

provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.