Bitcoin Prices Start Moving Stable Despite Negative Sentiments

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Bitcoin has survived relatively well in trading this week, despite negative news about regulatory repression.

For analysts who have a long-term view, the price is in line with their theses which enhances oversight will shake up "bad performers" and make the market healthy enough for institutions to invest.

"In the long run this is bullish," Brian Kelly, a CNBC contributor and head of BKCM, said in a note to clients. "If the DoJ and the CFTC feel as if they have 'cleared' the market, then it paves the way for the US. Bitcoin ETF is physically supported, and it brings in institutional investors. "

Bitcoin briefly hit a six-week low of $ 7,272 on Thursday after Bloomberg reported the US Department of Justice opened a criminal investigation into whether traders were manipulating the price of the crypto currency. The report, citing sources, said the Commodity Futures Trading Commission assists in the investigation.

However, bitcoin immediately recovered its losses for the day and traded near $ 7,570 in the afternoon, down just 8 percent since Friday. The CFTC, which oversees bitcoin futures, declined to comment, as the Department of Justice did.

"I have not seen any evidence of price manipulation in the bitcoin market, but it certainly supports increased supervision, because it can only help to instil further confidence in the crypto market," said Joe DiPasquale, founder and CEO of BitBull Capital, cryptofund who invested in other cryptofund

Other negative news could hit bitcoin prices harder this week, but it is not.

On Monday, the North American Securities Administrators Association announced that the "Cryptosweep Operation" action against fraud related cryptocurrency has caused nearly 70 questions and nationwide investigations since the beginning of this month. Thirty-five enforcement actions are pending or completed.

"These actions indicate that 'adult supervision' comes to the crypto and adds that control to gradually increase the structural integrity and legitimacy for crypto currency investors," said Fundstrat Tom Lee. Lee maintains a mid-year price target of $ 20,000 in bitcoin and a $ 25,000 year-end estimate.

It may take longer for the cryptocurrency market to recover from the regulatory uncertainty that has contributed to a decline of more than 50 percent bitcoin earlier this year.

Lee has predicted bitcoin will get a boost last week from the Consensus and other cryptocurrency conferences during New York City's "Blockchain Week".

But the rules persist. On Friday to the week of the conference, bitcoin fell to its lowest level since April 20, a three-week low, after prosecutors raided the biggest cryptocurrency currency exchange in South Korea.

"The crypto market is still in its infancy - we are in a relative stone age - and very sensitive to news and manipulation," said Matthew Roszak, founder of the blockchain company, Bloq and chairman of the Digital Chamber of Commerce.

"As markets mature with better infrastructure (stocks, futures, etc.) along with increased participation from institutional investors globally," he said, "the market is going through these tough times."