Why bitcoin bulls are running for cover

Bitcoin is languishing at $7,500 as the anticipated post New York Blockchain Week surge failed to wing. The next support levels could be at around $6,600 marked by the low in early April, as bulls run for cover.

It would appear a number of factors may have conspired to trigger renewed selling, dating back to the problems at the South Korean exchanges Bithumb and UpBit that surfaced following a raid by the authorities on the latter two weeks ago.

That rekindled fears about a regulatory clampdown, and that train of thought has been strengthened by the news the US Justice Department has opened a criminal investigation into price manipulation in the crypto markets.

US and UK regulators go hunting for price manipulators and ICO fraudsters

Practices outlawed in mainstream equity markets are allegedly widespread in bitcoin and other crypto markets, but crypto exchange surveillance systems are unlikely to be strong enough to…