Bitcoin at lowest levels since March
by LORENZO CIOTTI | VIEW 1033
Bitcoin is at its lowest level since mid-March: the cryptocurrency has dropped below $27,000, with the downward trend also affecting Ethereum. Furthermore, the ban on transactions based on cryptocurrencies recently imposed by the Chinese government also seems to be weighing on the downward trend.
Beijing's anti-fraud move blocks the important block of Chinese investors, among the authors of the surge in the Crypto sector in recent years. The congestion of the Bitcoin network seems to have played a fundamental role in the failed assault on the $30,000 level with Binance, for example, which has had to stop withdrawals for the time being.
The market is having difficulty covering orders, both buy and sell, especially those with higher volumes. Among other things, the liquidity situation could get even worse as two major players in the cryptocurrency market such as Jane Street and Jump Crypto have decided to reduce their exposure.
The problem of low liquidity, especially after the banking crisis that broke out after the failure of the Silicon Valley Bank, exponentially increases the tension between sector operators and regulatory authorities. US vigilante authorities who are increasingly tightening the circle around the sector making many investors afraid and causing an increase in volatility for Crypto.
The Bitcoin network allows for the pseudo-anonymous possession and transfer of coins; the data necessary to use one's bitcoins can be saved on one or more personal computers or electronic devices such as smartphones, in the form of a digital wallet, or kept with third parties that perform functions similar to a bank.
The bitcoin wallet has an address identified by an alphanumeric code which has between 25 and 36 characters between numbers and letters; it is the only data to be communicated to receive a payment that will enjoy a certain degree of anonymity, but will be publicly and immutably visible on the blockchain forever.
You must be very careful when transmitting the alphanumeric code as any errors do not allow you to cancel the operation and cause the loss of money. You can receive payments more simply by scanning QR codes. In any case, bitcoins can be transferred across the Internet to anyone with a bitcoin address.
The peer-to-peer structure of the Bitcoin network and the lack of a central body make it impossible for any authority, governmental or otherwise, to block transfers, seize bitcoins without possession of the relevant keys or devalue due to the entry of new currency.