Bitcoin bouncing off $8,000 support after Google crypto ad ban

Bitcoin has been testing a monthly low at the $8,000 level and dipped as low as $7,920 since Google announced an update to its Financial services policy that will ban advertisements for “cryptocurrency and related content”. Falling from around $9,300 late on Tuesday night, the world’s most liquid digital currency has been most recently been trading in a range around $8,000 – $8,250. Separately, industry officials also said at a Congressional hearing  Wednesday that U.S. regulators need to provide greater clarity.

The Google ban  is very broad in its targeting, defining cryptocurrency content (but not exclusively) as “initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice.” It will also extend to contracts for difference (CFD), rolling spot forex, and financial spread betting. The crypto ad ban is scheduled to take effect in June.

Although Google will allow some of the restricted financial products (CFD etc) to advertise through AdWords, they must first be certified by Google, and their products, landing pages, and ads must meet all local legal requirements of the country they want to be certified for. There is no option from Google for certifying crypto products, however. 

U.S. House of Representatives’ first hearing on cryptocurrency

Google’s decision and earlier crypto ad bans by Facebook and Instagram illustrate the need for definitive guidance from legislators worldwide as to the legal status of the cryptographic asset sector. Industry officials said at a Congressional hearing  this week that U.S. regulators need to provide greater clarity. On Wednesday morning, Coinbase chief legal officer Mike Lempres told a first-ever House of Representatives hearing on cryptocurrencies that the indecision and ambiguity from U.S. financial watchdogs over regulation in the cryptocurrency market is hurting the nascent industry in the country and may cause startups to go elsewhere to do business.

“Congress should insist that the SEC and CFTC coordinate, as they have in the past, to clarify how companies, markets and investors can determine whether an individual token is a security or a commodity,” Lempres said according to Bloomberg. “The current regulatory environment — in particular regulation by enforcement without enough clear guidance on what is permissible — is harming healthy innovation.”

Bitcoin charts 

Looking at price action on the 15m chart, BTCUSD is in a potential support/resistance zone between $8,000 and $8,250. There was a hammer-like candle stick with a large spike in volume at the bottom of the trend.

The 9EMA is still below the 20MA but converging.The top 10 coins on coinmarketcap.com have all taken a hit in the past 24 hours, falling between 8-15 percent.

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