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Opinion Bitcoin Price Bullish What happens now that BTC aims to skyrocket

In the blink of an eye, it seems the world is asking ‘Why do we need Bitcoin?’ Has gone beyond. ‘When will regulations start supporting crypto?’ Or ‘When will ETFs finally come into existence?’ It’s truly a bittersweet moment. It’s heartening to see new recognition for Satoshi Nakamoto’s innovation, which has been around for 15 years. Still, there is some concern about whether it would be wise to acquire more Bitcoin when prices are lower.

Market volatility often influences investment decisions, and as this posed a challenge for additional Bitcoin investments, Bitcoin’s value soared, doubling in price and leading to ‘Uptober’ against the backdrop of institutional investors waiting for the ETF. Expectations were validated.

This leads us to the present important question: What is the future of Bitcoin?

future of bitcoin

US Fed Chairman Jerome Powell’s predictions about rising interest rates are finally a reality and the deniers are still in disbelief. For the past few weeks, most financial experts have dismissed the possibility that rising interest rates will hurt the economy.

However, now that it is here, a stock market decline appears certain, along with the possibility of collapse of the big banks due to rising credit interest, and resulting lows in the dollar index and treasury yields.

The nine-letter word, which starts with R and ends with N and has ‘recession’ in the middle, looks like it will start even before the financial year ends, unless there is some drastic policy intervention. Don’t be stopped.

Traditionally, it has always been favorable for Bitcoin as people widely view it as a hedge against inflation. However, we cannot underestimate the fear factor that can arise when stock market prices go down. Investors may consider exiting both the stock and crypto markets altogether while they can still get some profit from it. In fact, this may have an impact on price increases.

Bullish on coins

All indicators point towards a bullish market, especially the sideways movement of Bitcoin and the simultaneous rise of altcoins. While HODLers may continue to invest or retain their funds, we may also see some worried existing investors walk away with profits. They have been struggling with the impact of the SBF failure and bear market for some time, and they may take advantage of the opportunity to exit when prices are rising.

The new support level is considered to be $31,000, which means that at this level, buyers could be seen joining the market in the coming months, which could boost trading activity on exchanges that has been in decline over the past year. However, it’s important to remember that the price increase is being driven by anticipation of a Bitcoin ETF, which has been requested by institutional finance giants like BlackRock, VanEck, and Grayscale. If and when approval is granted, it will be a major victory.

But if that happens this financial quarter, the pace of market growth will slow down as participants come to terms with the impact of the move. This means that for the next price rally, the market will look for another stimulus if there is a big gap between ETF approval and the next Bitcoin halving event.

If there are no motivating factors that appear to be encouraging for participants once the ETF comes into effect, prices may see some downside, even going below the $31,000 level. Inevitably, there will be a revival before the halving event.

On the other hand, while the latest price rally for BTC is being attributed by the market to expectations of spot Bitcoin ETF approval by the Fed, it is also being driven by an increase in Bitcoin buying, particularly in markets across Asia, where makers called for Have done Buying options for tokens.

The Relative Strength Index has also predicted overbought conditions over the past few weeks. Institutional investors are being seen as the saviors of Bitcoin as their interventions have boosted market sentiment and often worked wonders for the price.

But it is important to note that many of those who deal with hedge funds, credit or equities may not be willing to invest in crypto due to the reputational as well as financial risks that are still associated with the asset. Furthermore, we cannot forget that liquidity crunch is still rampant in the market and although awareness has increased manifold, without adequate liquidity, adoption and participation is restricted.

Finally, we have seen a consolidation phase after a huge price increase which takes the market into a correction mode. If the support level does not stabilize at $31,000, we could see the BTC price settle at $29,000 and remain there until the ETF is approved or in the event of a possible bearish stock market. Or new users don’t enter crypto to avoid the hassles of traditional monetary funds. ,

(The author is vice president of crypto investment platform WazirX)

Disclaimer: The opinions, beliefs and views expressed by various authors and forum participants on this website are personal and do not reflect the opinions, beliefs and views of ABP Network Pvt. Ltd. Limited crypto products and NFTs are unregulated and can be extremely risky. There may be no regulatory recourse for any losses arising from such transactions. cryptocurrency It is not legal tender and is subject to market risks. Readers are advised to seek expert advice and carefully read the offer documents as well as relevant important literature on the subject before making any investment.



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