The start to the week has been dominated by the sell-off in cryptocurrencies. Much of the blame appears to be attributed to President Trump’s Thursday Tweet about not being a fan of cryptocurrencies.

If that is the case, that’s a record delay to one of his Tweets, especially from a market as vulnerable as crypto. However, there was a story circulating from Reuters that the Democratic majority that leads the US House Financial Services Committee, is circulating a draft proposal to prevent big technology companies from functioning as financial institutions or issuing digital currencies.

The draft legislation, ‘Keep Big Tech Out Of Finance Act’ would likely meet strong resistance from Republicans and it could potentially struggle to gather enough votes to pass in either House.

Regardless, it seems to have spooked the market and coupled with ETH breaking major support at $261, has got the crypto market off to a rough start. At the time of writing, BTC is trading at $10,600 having been as low as $9,855.

The July 2nd low of $9,614 is the level that now needs to hold. ETH has traded back to $231 from an earlier low of $203



On the FX front, it’s a very quiet start to the week. Most major currencies have been stuck in a 20 point range and have shown little interest in straying far from Friday’s close.

GBP would be the one exception trading down to 1.2510 as fears mount over Brexit and the current Conservative Party Leadership race. Gold was also little changed from Friday’s close trading around $1,413 an ounce.

Even US equities decided to pause for breath with the DJ closing up just 27 points at day’s end.

Talk about the exact opposite starts to the week. Crypto has incredible volatility meanwhile FX takes a day off. So from a technical perspective, I’ve chosen to look at BTC.

The market leader has lagged other coins on this move down but nonetheless is under considerable pressure.

The last attempt to break back under the $10,000 level saw a move to $9,615.