31.05.202116:41 Forex Analysis & Reviews: Ireland joins the fight against the cryptocurrency market following China

The bitcoin exchange rate sank over the weekend but has already managed to recover after the news that the Irish authorities began to pay "unfriendly" attention to the cryptocurrency market. According to Derville Rowland, one of the senior officials of the Central Bank of Ireland, the growing popularity of cryptocurrencies such as bitcoin "is of serious concern to the regulator."

"Crypto assets are quite speculative, unregulated investments, and people should be aware that they can lose everything," the Central Bank's director general of financial control said in an interview.

Thus, the Central Bank of Ireland is officially joining a host of other central banks that have long sounded the alarm over cryptocurrency investments.

Let me remind you that just recently, Bank of England Governor Andrew Bailey warned that cryptocurrencies have no intrinsic value and that people should only buy them if they are ready to lose their money. Last week, Bank of Japan Governor Haruhiko Kuroda added his voice to those concerned about what is happening. He stated that bitcoin's extremely high volatility is a significant problem in this market.

Meanwhile, China remains the main driving force that is putting pressure on bitcoin. Even though Chinese investors pay little attention to the government's measures to combat cryptocurrency trading, and the authorities have been fighting since 2017, the problem for Beijing, which is trying to curb the speculative boom in digital assets, remains quite serious.

The recent hectic sales in the cryptocurrency market have only strengthened the view that this investment direction is associated with colossal risks.

China has stepped up its restrictive measures recently after the frenzied rise in bitcoin and other tokens over the past six months has reinforced the Communist Party's longstanding concerns about the possibility of a number of scams and money laundering with cryptocurrencies, in addition to losses from individual investors. Nonetheless, problems with tracking transactions on blockchain networks remain quite serious, preventing the authorities from achieving massive compliance with the current bans.

As for the technical picture of bitcoin, it has not undergone major changes, however, buyers are not yet very active in the area of 36,200, which may lead to a larger downward correction of the trading instrument in the area of 31,000. A lot depends on the breakdown of this level, since if there is no special movement of the bulls, it is possible that bitcoin will sink to the area of 25,800 and 21,600. It will be possible to speak about the manifestation of bullish sentiments only after going beyond the large resistance of 41,100, which will open a direct road to a maximum of 46,700 and 52,000.

Paypal

While the Chinese authorities are struggling with the ban on various types of transactions with cryptocurrencies, it became known that the payment giant Paypal is going to allow its users to transfer cryptocurrency from its platform to third-party wallets in the near future. This was recently announced by the head of the cryptocurrency operations department of Paypal. This decision was made in order to make their new platform as open as possible.

Currently, the Paypal terms for the cryptocurrency service state that you cannot send crypto assets to family or friends, or withdraw crypto assets from your internal company wallet to other external wallets. You can use cryptocurrencies only to pay for goods or services.

Paypal CEO Dan Schulman said this month that the cryptocurrency business has performed "really great results" as the company reported its best quarter ever. In April, he said that the demand for cryptocurrency was many times higher than Paypal's initial expectations.