The cryptocurrency market remains a focus of
considerable interest with Bitcoin at $60,000 level. Follow closely
developments with Federal Reserve Chair Jerome Powell to deliver a speech that
investors and traders are eagerly waiting for. The Bitcoin Bull Market appears
to have gone into a hibernation and the global rise in prices is now flattening
out. We talked about it last time: 2018 will be different from what we
experienced this year as traders, hodlers, investors or whatever you want to
call themurrencies cryptocurrencies (over!) Never stop früher
Well early December. This article will be a deep
dive into the ongoing Bitcoin market, and other terms too- along with its price
predictions/stream — factors behind that!
Out of the
following, how much will Bitcoin cost in 24 hours?
With this inherent volatility, predicting the
price of Bitcoin in 24 hours ranges from hard to impossible. But the reality
is, as we have seen before with market cycles in history that Bitcoin prices
are likely to stabilize somewhere around that $60k mark – given current trends
and other factors. There could be some small oscillations, though sideways
unless we hear something unexpected or a macroeconomic concern — otherwise
known as business risk. Merchants are inspired to maintain a watch from
developments including Powell’s comments — adjustments that would effect
Bitcoin sentiment.
1 Bitcoin
= Price Today:
This morning, Bitcoin is worth around $60,000 each.
These market uncertainties impacting the price has proven to have strong
support at this level. The morning price is this same ~$11,394 level and the
chart pattern appears to be following along with recent activity in that
Bitcoin seems to consolidate slightly below resistance before making its next
real move. Another reason that this stability is key lies in the fact it gives
traders and investors something of a psychological level to hold onto just
over, $60k. The kind of gains seen on the stock market yesterday might also
offer an indication as to which way Bitcoin may be headed in the short term,
depending upon the response it gets from Powell’s imminent speech.
Price
Prediction For Bitcoin?
The debate on whether Bitcoin is going to break
bearish or bullish has been based upon elements such as macroeconomic
indicators, regulator progressions and market sentiment. The views of analysts
are split, with some calling for a breakout above $60,000 and others warning
that retracement may be possible. What it ultimately hinges upon is the
position of interest rates and inflation being taken by The Federal Reserve, as
well alluded to in Powell's monologue.
It appears that should Powell provide a strong
signal of dovish measures, intimating lower interest rates for longer, Bitcoin
could very well capitalize on the news and garner much needed bullish momentum.
Meanwhile, a hawkish tone could trigger market corrections as investors begin
to review their risk positioning. Looking at the entire scenario, it is predicted
that Bitcoin can remain between $60000 in short term and there are chances to
get lift up as well depending on conditions other than Marketaction.
Letter3:
Why Bitcoin So Volatile Right Now?
Built-in with fluctuations will be the volume of
what some investors call “whales” holding
Bitcoin
and the factors that drive its value, essentially:
National Macroeconomic Factors: On a national
level, economic conditions in general and inflation fears — as well as similar
monetary policy decisions taken by Central Banks (money printing) exert an
important influence on Bitcoin. O nly now it is to hear what Powell has to say;
This can be sensed as a partial hint about the next economic measures.
Market SentimentInvestor sentiment has a huge
influence on the price movements in Bitcoin. For example, bullish news like
institutional adoption or favorable regulatory changes typically causes the
price of Bitcoin to rise and bearish news triggers sells-offs.
Regulatory Environment: Cryptocurrency the space
in general is still ripe with regulatory uncertainty. Price volatility often
also accompany news by major countries of increased regulations or crackdowns.
Supply & Demand: Bitcoin has a limited
supply, capped at 21 million coins. More is in demand, especially from
institutional investors as the price tends to increase. But these fluctuations
only come from shifts on demand or movement of whales making huge blocks.
Technological Developments: Improvements in
blockhed technology, upgrades to the Bitcoin network or competing
cryptocurrencies can also influence Bitcoin price.
SPECULATIVE TRADING: Speculation occurs when
short-term profits are the primary goal behind many trades, which in turn
causes markets to undergo violent changes as speculation can cause prices to
move rapidly. This may be exaggerated by traders using leverage or engaging in
futures contracts.
These and more, were the factors responsible for
price movements of Bitcoin quite regularly owing to how volatile it is. As the
market matures, some of this volatility might calm down but for now, it is one
of Bitcoin's main traits.
Steady
Rise to $60k BA Hetke Farm Current Market Info:
There appears to have been breakneck rises and
plunges, as well as consolidation phases here and there on Bitcoin's way up to
$60k. There are a number of significant reasons for this steady increase:
Institutional Adoption: Major financial
institutions and corporations have begun to incorporate Bitcoin as a store of
value & hedge against inflation gradually. Tesla, MicroStrategy or Square
have been added Bitcoin to their Balance-Sheet and reflects confidence in
long-term value.
Retail Investors: An increasing number of retail
investors are trading Bitcoin, as it has become more accessible through
easy-to-use platforms and mobile apps. Accessibility on-the-go and heightened
awareness has resulted in a wider audience of investors.
Global Economic Uncertainty: With uncertainty
prevailing in global markets amid the coronavirus pandemic an alternative to
traditional assets has started making more sense for investors. For the
multi-asset investors, Bitcoin as digital gold has become one of a safe-haven
to choose from.
Limited Supply and Halving Events: This led to
Bitcoin being scarce with only 21 million ever created, along with halvings
that periodically reduce the speed of new bitcoins entering in. This lack of
supply has helped to keep its price up.
Updates to the Protocol: The bitcoin network has
made progress in security fixes, scalability and is way more efficient today. For
example, the Lightning Network has improved transaction throughput in Bitcoin
and reduced costs which have increased its everyday use.
Legislative Certainty: Though regulatory doubt
has been both a depressor and stimulant of confidence, some authorities have
outlined more explicit instructions for Bitcoin use and investing. This has
enabled to reduce one of the risks related with regulatory crackdown.
Effect of
Powell Speech on Bitcoin Price:
The biggest influencing factor is the upcoming
speech by Jerome Powell, which could spell massive movements for Bitcoin.
Powell is the head of America's central bank, so market watchers across the
globe pay rapt attention to his comments about monetary policy, interest rates
and inflation. The price of bitcoin has been used as a hedge against inflation
at an accelerated pace, and the volatility is generally more intense following
situations similar to this.
If Powell is even a hint of dovish, signaling
that rates will remain low for awhile yet to come — it could spark a renewed
uptrend in Bitcoin. This would give more lure to Bitcoin as an inflation hedge
and perhaps trigger a breakout over $60,000.
A more dovish Powell could send Bitcoin surging,
while a hawkish one may lead to downside pressure as the environment
cryptocurrency of around interest rates. That could prompt some to abandon more
risky assets such as bitcoin in favor of traditional safe havens like
government bonds or the U.S. dollar, they say.
How the market responds to Powell's remarks will
be watched carefully as it may guide Bitcoin for weeks to come. Expect higher
volatility during — and after — the speech, so traders and investors please be
prepared.
Long-Term
Outlook for Bitcoin:
However, the long-term future of Bitcoin remains
bullish and despite what little support it has in current levels. There are
several reasons why this tendancy may continue to expand:
As institutional adoption continues: the demand
increases with every addition of bitcoin to corporation strategies. All of that
goes way beyond just corporations, but it also includes financial services like
ETFs — making Bitcoin much easier for retail investors to dip their toes into.
Global Economic Shifts: Bitcoin has the potential
to develop as an alternative store of value, especially with long-term economic
trends threatening traditional currencies via inflation, debt and monetary
policy. Bitcoin usage will rise in countries which have unstable currencies, or
failing economies (such as Venezuela and South Africa).
With technological evolution: New advances that
are being developed for the bitcoin network and ecosystem can improve or make
it more efficient, secure. Bitcoin stands to gain a lot by making efforts
towards better scalability, privacy and transaction speed so that it competes
with other cryptocurrencies as well traditional payment systems.
Complimentary Regulatory: As government and
regulatory bodies become more accustomed to Bitcoin it is possible for a sunny
relative environment. This would help to depress the risk premium on Bitcoin
and thus could widen its investor base.
Scarcity: The limited supply of Bitcoin and the
increase in demand should put upward pressure on its price. Considered subject
to normal market forces until the total available supply shrinks over time (due
primarily to lost or held Bitcoin), temporary inflationary pressures could give
way eventually entirely to a long-term deflation.
Conclusion:
According to one analyst, Bitcoin at $60,000 is a
signal for the market that larger financial news awaits. The price of Bitcoin
could swing dramatically as the world looks for hints about future monetary
policy. In the short run, Bitcoin is a volatile asset; however, for long term
investors it may serve as an excellent investment driven by macroeconomic headwinds
and tailwinds including institutional adoption and technology developments in
ETH 2.0 that reinforce its value proposition – digital gold to hedge against
economic uncertainty with Druckenmiller-esque return potential!
Investors and traders need to be up-to-date on
all macroeconomic events, regulatory changes and trends in the markets. With a
long journey ahead of it, Bitcoin will continue to develop and serve as one of
today's most significant changes in the global financial landscape.
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