Forex. Cryptocurrency trading forecast and signal for today, April 20
Bitcoin has dropped to the level of $55,300. Ethereum is trading around the $2,130 mark, and the XRP price has dropped to $1.34. The total capitalization of the cryptocurrency market was $2 trillion.
Li Bo, Deputy Governor of the People's Bank of China, said cryptocurrencies such as Bitcoin should be considered as alternative investments. This is the first time that the Chinese authorities have recognized the value of cryptocurrencies. During his speech, Li Bo noted the advantages of digital assets as an investment tool. At the same time, he stressed the regulatory uncertainty associated with them. The representative of the People's Bank of China also added that stablecoins will need to be regulated on a par with banks if they plan to become widely used payment instruments in the future. According to the official, the current practices in the form of a ban on Bitcoin exchanges and ICOs will remain in force until the new regulation is finalized. The deputy head of the NBK also touched on the topic of the digital yuan. According to him, the primary interest for the regulator is the internal use of stablecoin.
The Bank of England and the UK Treasury have set up a working group to coordinate research on the issuance of a state-owned cryptocurrency and assess the risks of this initiative. Within the framework of the joint project, the principles of the Central Bank's digital currency and the possible risks associated with it will be studied. The UK government and the Bank of England have not yet made a final decision on whether they want to issue a state – owned cryptocurrency, and the joint project is the largest step they have taken in this regard. The Bank of England also announced the creation of an Interaction Forum to receive feedback on the non-technical elements of the introduction of the state cryptocurrency and a Technology Forum to address the technical problems of its release. Last summer, the governor of the Bank of England, Andrew Bailey, said that the regulator assesses the pros and cons of issuing the state cryptocurrency. Last year, the Bank of England also said that technology providers would not dictate to the regulator the conditions for the development of a state-owned cryptocurrency. The bank will first determine the functions of the asset, and only then choose the technology for it.
Trading Signals for BTC, ETH and XRP
The forecast is expected to reduce the price of Bitcoin to $54500. Ethereum may decline to $1,050, and XRP - to $1.25.