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Forex trading. Cryptocurrency forecast for today, July 21, 2021

Forex trading. Cryptocurrency forecast for today, July 21, 2021

The cryptocurrency market continues to fall. Bitcoin has fallen to the level of $29700. Ethereum declined to the level of $1800, and XRP reached 53 cents. The total capitalization of the digital currency market has fallen to $1.2 trillion.

At the auction on Tuesday, the decline of bitcoin accelerated, and for the first time in about a month, the currency fell below the psychological mark of $ 30,000, which was considered an important support. Crypto assets are getting cheaper against the background of the general growth of anti-risk sentiment. The decline of bitcoin from the February highs has called into question some of the arguments that helped this cryptocurrency show strong growth at the beginning of the year. For example, many experts believe that the limited supply of bitcoin makes it a good hedge against inflation. However, according to the results of the current year, it adds only 2%, while the S&P 500 shows an increase of 13%.

Companies conducting transactions with bitcoin and other cryptocurrencies will have to collect the data of the sender and recipient to help the authorities in the fight against money laundering. Such a proposal is contained in a draft law prepared by the European Commission in accordance with the recommendations of the Group for the Development of Financial Measures to Combat Money Laundering. Companies that transfer cryptocurrencies in the interests of customers will have to record the name, address, date of birth and account number of the sender, as well as the name of the recipient. The recipient's service will have to make sure that all the necessary information is available. Transferring cryptocurrency anonymously will be prohibited in the same way as it is impossible to anonymously transfer money between bank accounts.

It is assumed that these proposals will allow the European crypto industry to develop, as it will take advantage of an updated and harmonized legal framework throughout the bloc. The final decision on the approval of the proposed norms remains with the EU member states and the European Parliament, and it may take up to two years for the draft law to be approved.

In the forecast, I assume a further decline in Bitcoin to the levels of 29500, 29300 and 29000 dollars. Ethereum will reach the levels of 1775, 1750 and 1700, and XRP will reach the price values of 52, 50 and 48 cents.

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