Crypto analysts note that headwinds are starting to pile up, explaining the recent decline in Bitcoin, Ethereum, and cryptocurrency prices. The massive BTC long liquidation and bans imposed by UK financial institutions on crypto spending and purchase by users could dampen the sentiment of Bitcoin holders.
David Gokhstein, a crypto influencer and the founder of Gokhstein media, said that Bitcoin would zero in a recent tweet. The crypto proponent’s tweet came when a large volume of Bitcoin longs was liquidated after a 4.3% decline in BTC price overnight.
Over $72.91 million worth of BTC longs were liquidated earlier today, implying that the sentiment among derivatives traders has turned bearish. The current week has been eventful with HSBC and Nationwide’s newly imposed restrictions on crypto purchases. HSBC, the UK’s largest bank, has reportedly banned customers from purchasing crypto using credit cards and nationwide imposed a £5,000 daily limit on crypto purchases using debit cards.
The banks have justified the actions by citing warnings from the regulator Financial Conduct Authority (FCA). The shifting attitudes among financial institutions could directly influence the inflow and outflow of capital to and from cryptocurrencies like Bitcoin.