CryptoWatch: Dr. Doom calls out crypto bulls; major coins rally on SEC news

As crypto traders watched their portfolios deteriorate Wednesday, Turkish-born American economist, Nouriel Roubini took to social media to reiterate his stance on cryptocurrencies and blockchain, the decentralized technology that underpins digital currencies.

Roubini, who famously predicted the collapse in the U.S. housing market and banking system, has been just as bearish on digital currencies since they began their meteoric rise in 2017. In February, he said bitcoin was going to zero and has called bitcoin “the mother of all bubbles,” living up to his Dr. Doom nickname.

The New York University professor has frequently voiced his opinions on social media, and as digital currencies unraveled yesterday, Roubini was at it again, taking a shot at Tim Draper, who thinks a single bitcoin will be worth $250,000 by 2022.

Read: Opinion: Roubini: Blockchain is one of the most overhyped technologies ever

However, those decimated portfolios are showing some life Thursday, and these gains accelerated early afternoon when a leading voice at the SEC said bitcoin and Ether are not securities.

After trading to $6,133.31 late Wednesday, bitcoin is well off its lows. A single bitcoin BTCUSD, +6.31%  last changed hands at $6,574.36, up 5.2%, since Wednesday 5 p.m. Eastern Time on the Kraken crypto exchange.

SEC gives green light

Digital currency owners breathed a sigh of relief Thursday when William Hinman, the director of corporate finance at the U.S. Securities and Exchange Commission, said bitcoin and Ether are not securities.

“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,” said Hinman.

Further reading: Bitcoin and Ether rally after SEC official says they aren’t securities

Downtrend confirmed says technical analyst

As technical analysts continue to hunt for the next support level, one noted chart-focused analyst said yesterday’s break of $6,450 was confirmation we are in a downtrend, and there is no support for another $1,000.

“BTC is now stress testing its next critical support level at the April lows (6450), which if broken, would establish the first series of lower lows since 2015, and by definition, confirm a new downtrend of lower lows for BTC,” said Rob Sluymer, managing director and technical strategist at Fundstrat Global Advisors, in a note early Wednesday. “Next support is near 5500 followed by 3200.”

Sluymer’s colleague, Tom Lee, managing partner at Fundstrat Global Advisors is one of bitcoin’s biggest bulls, having a year-end price target of $25,000 for the worlds biggest digital currency.

Read: Here’s why bitcoin is falling—and it isn’t just the Coinrail exchange hack

Altcoins and futures show life

Coins alternative to bitcoin, commonly referred to as altcoins, followed bitcoin higher after the comments from the SEC executive director.

Ether ETHUSD, +10.09% has regained 9.4% to $515.23, Bitcoin Cash BCHUSD, +8.28% is up 8.4% at $892.00, Litecoin LTCUSD, +10.51%  has added 8.2% to $99.42 and Ripple’s XRP XRPUSD, +8.15% is up 7% to 55 cents.

The Cboe June contract expired yesterday and the July contract XBTN8, +6.14%  has gained 4.9%, last trading at $6,580, while the CME June contract BTCM8, +5.98% is up 4.7% at $6,565.

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