Search ForexCrunch
  • “I think cryptocurrency is junk,” reckoned Ajay Banga, MasterCard CEO.
  • Bitcoin price is on the verge of another breakdown likely to test $7,800.

The CEO of MasterCard, Ajay Banga is reported to have trashed on cryptocurrencies referring to them as “junk”. Banga was speaking at the 6th New India lecture held in New York. Coin Insider reports that the CEO said that the volatility nature of the virtual currencies is not in line with what a legal exchange should be. He stated:

“I think cryptocurrency is junk. The idea of an anonymized currency produced by people who have to mine it, the value of which can fluctuate wildly – that to me is not the way that any medium of exchange deserves to be considered as a medium of exchange”.

His comments are quite amusing following a number of patents MasterCard has had with the blockchain technology. Moreover, the company recently received a patent that will see virtual currencies linked with fiat currencies. In addition to that, this isn’t the only patent the company has expressed interest in. However, MasterCard has also maintained that it can only support a digital asset backed by the state. But Banga’s comments still come as a surprise to many in the industry.

Bitcoin price analysis

Bitcoin price is hanging on the edge of a cliff while battling to maintain above $8,000. It is important to note that the crypto dipped below $8,000 yesterday and tested the support at the 50% Fib retracement level with the last high leg of $8,490.39 and a low of $7,207, which also coincides with the trendline support at $7,850. The price is currently trading above $8,000 while the upside movement has been restricted at $8,200 since yesterday.

Technical indicators on the 1-hour chart are sending bearish signals. The stochastic is advancing further to the south but still at 40%. The MACD, on the other hand, has been unable to leave the negative territory for over 2 days now. This means that the selling pressure is continuing to rise while buyers continue to lose control. Both the 50 SMA and the 100 SMA are limiting gains on the upside, but also show that the path of least resistance to the downside in the short-term. The 61.8% Fib level must stand ground to prevent breakdown towards $7,800 (major support).

BTC/USD 1-hour chart