Bitcoin drops like a stone, ShapeShift's decision to introduce registration system adds fuel to the fire

Bitcoin dropped like a stone for no particular reason that can explain the sharp movement. BTC/USD lost over 3% within minutes and hit $7,091 low before new buyers came in and initiated the recovery.

Looking technically, the short-term upside trendline serves as a good support zone that helped to limit losses. Currently, BTC/USD is changing hands at $7,141, but the recovery momentum is fading out. Apparently, $7,000 is the critical threshold that needs to hold; otherwise, the bearish trend will gain traction.

Bitcoin is not traveling this road to the South all alone. All major coins are crashing too with Ethereum and XRP losing 5% and 4% in an hour

The news that ShapeShift, a popular platform for instantaneous Bitcoin exchange, introduced membership, might have added fuel to the fire. The new system implies that users will have to provide their personal data.

"ShapeShift has big news for our users! We are now offering a new membership program, which will provide users with more benefits & better user experience," the official announcement says.

Now the registration is optional, but soon it will become obligatory. The company positions the new initiative as a sort of loyalty program that will offer users additional benefits like favorable exchange rates, rewards for FOX token transactions.

ShapeShift's CEO Erik Voorhees admits, that the compulsory registration is a painful but measure, dictated by the unclear regulatory landscape.

"Yes, that last detail sucks. We would prefer if the collection of personal information were not a mandatory element. We still firmly believe that individuals, regardless of their race, religion, or nationality, deserve the right to financial privacy, just as they deserve the right to privacy in their thoughts, in their relationships, and in their communications. Such privacy is a foundational element of civil and just society and should be defended by all good people. We remain committed to that cause, and it is best served if we are smart about our approach."

BTC/USD, 1-hour chart