Month: October 2020
The Bitcoin (BTC) network uses the Proof of Work consensus algorithm. This requires a lot of computing power from the so-called miners, who verify the Bitcoin blocks with special mining hardware. The picture shows a Bitcoin coin mechanism on a circuit board.
While there are still concerns about a second lockdown in the financial markets, Bitcoin (BTC) was able to break away from the markets yesterday, Tuesday. The leading cryptocurrency attacked the $ 12,000 mark. But how sustainable is the growth and is Crypto Genius not still in the hands of the stock markets?
In this article we look at a recent tweet by the analysis company Weiss Crypto Ratings. These warn investors of the correlation between BTC and the stock market and the associated likelihood of price corrections.
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Weiss Crypto Ratings warns of Bitcoin correction
Weiss Crypto Ratings has issued a warning to investors that Bitcoin’s price could crash if the stock market downturn.
In a tweet published on October 16, the analyst warned that Bitcoin’s high correlation with the US stock market could lead to future price fluctuations.
Weiss Ratings uses the argument of possible economic uncertainty that could be caused by the presidential elections next month and that could lead to increased volatility on the stock and crypto markets.
US elections are associated with volatility
Let’s note that the basic tweet speaks of probabilities and scenarios. So the speech is in the subjunctive and in no way expresses certainty.
According to a report by IBTimes , the period leading up to the US election for traditional markets has historically been volatile. This means that both crypto and share prices can experience significant fluctuations during this period. The result itself and any uncertainties surrounding the announcement of the election winner can also lead to increased volatility.
The report – rightly – suggests that Bitcoin has been strongly correlated with traditional stock markets since the market crash in March 2020. The question here is whether, and if so, when Bitcoin will manage to free itself from the hands of the stock markets.
Para o mundo do Bitcoin, dezembro de 2017 foram os dias de glória e o pesadelo, tudo envolvido em um. Durante aquele mês, e o retrocesso que se seguiu, o mundo viu o que poderia acontecer se o hype em torno das criptomoedas cedesse lugar à realidade.
Agora, quase três anos depois, o preço do tempo de impressão do Bitcoin exige um salto de 75 por cento para atingir a alta de [quase] $ 20.000
No entanto, olhando para a dinâmica da oscilação atual dos preços em relação a dezembro de 2017, pode-se ver que provavelmente estamos mais perto do que você pensa.
Para retroceder um pouco, os $ 19.000 não foram uma fase, foi uma onda primordial, foi a primeira vez que o Joe todos os dias ouvia sobre este ‘dinheiro mágico da internet’ e pulou no movimento. Além disso, a oscilação do preço foi severa, não estável, um salto rápido para $ 20.000 e uma rápida queda para menos de $ 10.000 em fevereiro e tão baixo quanto $ 3.000 em novembro. Sim, não era assim que alguém esperava. Mas agora, não apenas o mercado amadureceu, mas também o preço.
O impulso do Bitcoin de mais de US $ 10.000 e seu sustento do mesmo são a prova de que o mercado de criptomoedas está amadurecendo, já que o preço está se mantendo. De acordo com um relatório da Chainalysis , em todo o histórico de preços da criptomoeda , ela não passou mais de 13 semanas sendo negociada acima da marca de US $ 10.000. Na verdade, seu período mais longo foi de 13 semanas em dezembro de 2017.
Com o preço do Bitcoin fechando em $ 11.300, em 16 de outubro, isso marca a 12ª semana consecutiva acima de $ 10.000, uma curta distância da infame corrida de touros de dezembro de 2017
Para colocar isso em perspectiva, o atual movimento ascendente ultrapassou a alta de setembro de 2019 em mais de US $ 10.000, quando Libra , CBDCs , a mudança de posição da China sobre blockchain e Bakkt puxaram o Bitcoin de US $ 13.800 em junho para US $ 7.000 no final do ano. Todo este ciclo viu o Bitcoin ser negociado acima de US $ 10.000 por 11 semanas, conforme Chainalysis.
Como o Bitcoin passou 12 semanas desde a penúltima semana de julho negociando mais de US $ 10.000, agora está a apenas uma semana de superar a façanha de dezembro de 2017, algo que não é pouca coisa.
Michael Saylor, CEO of the business intelligence company MicroStrategy, today in the WhatBitcoinDid podcast, described the $50 million investment by payment company Square in Bitcoin as “exceptional news”.
Let’s take a closer look at what’s behind this news.
We will also talk about a tweet from PlanB, which suggests that the Bitcoin share price may be on the verge of its next parabolic rise. Is the next BTC Bullrun just around the corner?
Bitcoin – a lifeboat for many people
Between August 11 and September 14, Microstrategy invested $425 million in Bitcoin. About three weeks later, on October 8, 2020, Square followed with a smaller investment. Now MicroStrategy’s CEO has weighed the latest Bitcoin bet.
According to Saylor, Square did not make this investment for financial reasons.
They do not need the money, they have more money than God.
Instead, their investment is something like a political or ethical statement. Saylor mentioned in the interview that there are 932 million people in 22 countries with collapsing currencies and described Bitcoin as a kind of lifeboat for these people. Square, in turn, “packaged this whole step with the agenda of ‘making the world a better place’.
I am pleased that this brings positive, constructive and inspiring energy to this space and I believe that only good things will come out of it.
Square’s investment may even prompt Twitter or Facebook to make similar Bitcoin investments.
There are a lot of people who will see Square as an exceptional, successful and progressive company and they will want to copy that, because who wants to argue with success?
Saylor has since praised Bitcoin’s long-term investment opportunities on several occasions. But given Square’s investment, Bitcoin’s potential could also attract short-term traders. He said that the “Fast Money Dudes” on Wall Street will think about pre-empting the next investor who follows the example of Jack Dorsey. This in turn, Dorsey said, can
promote an avalanche of wonderful things that happen and all add up to this simple statement: ‘Bitcoin is a good thing, it’s a safe thing and you might want some of it’.
The latter would undoubtedly result in a rising Bitcoin price. In terms of timing, it would currently fit well in any case. At least if you ask PlanB for their opinion on it.
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It is time for the next Bitcoin course Bullrun
The trade known for stock-to-flow under the pseudonym PlanB recently posted a tweet implying that the experienced analyst, according to his model, expects the Bitcoin price to move into its next parabolic growth phase very soon.
Possibly, PlanB’s analysis model and fundamental events are playing into their hands here. Headlines like the above and similar positive developments around Bitcoin could indeed be the harbingers of the next long-awaited Bitcoin course Bullruns. That a further parabolic price increase for BTC will follow is beyond question for many. For them it is not a question of whether, but when. Bitcoin price forecasts from $120,000 to $600,000 through the substitution of gold are widely accepted.
Whether or not the wish is the father of the idea is not to be discussed further at this point. In any case, PlanB’s forecasting model suggests that a further parabolic Bitcoin price increase will occur soon. The positive momentum that BTC currently has due to its breakout from the symmetric triangle we discussed fits this as well.
When events such as these add up, this causes many retail investors in particular to accumulate further BTC for fear that they might otherwise jump on the bandwagon too late. This in itself is already generating increasing demand and could have a positive effect on the price of Bitcoin in the short term.