Bullish and Bearish Forces Are Neutralizing in the Bitcoin World
Uncertainty remains in the Bitcoin world.
|Sylvain Saurel||Oct 5|
Weeks follow one another and look-alike for the Bitcoin price. Someone who would only look at the Bitcoin price once a week every Sunday might feel that little happens each time.
In fact, the Bitcoin price was already $10.6K last week when I wrote my article at the beginning of the week.
As of this Monday, October 5, 2020, the Bitcoin price is still $10.6K. However, the week we have just lived has been marked by many events in the Bitcoin world. The week started in the best way possible with the Grayscale investments fund which announced that it had strengthened its position on Bitcoin for its customers.
Grayscale investments now holds 468,000 BTC for its customers who are mostly institutional investors. This represents 2.5% of the Bitcoin circulating supply.
This is quite huge when you look at the current distribution of Bitcoin circulating supply.
Bitcoin’s fundamentals have continued to strengthen with the record number of consecutive days with a Bitcoin price above $10K broken. The 2017 year-end series has been erased. If the Bitcoin price ends this day above $10K, the series will reach the 70-day mark.
Many people are wondering if we will ever see the price of Bitcoin below $10K again. I asked myself that question this week, and I invite you to share your feeling here: “Will the Bitcoin Price Fall Below $10,000 Again One Day?”.
The University of Cambridge then published the third edition of its annual study on the state of the cryptocurrency world. In this long-awaited study, researchers estimate that Bitcoin has just passed the 100 million user milestone.
All this remains an estimate, but it confirms the growing adoption of Bitcoin.
This Bullish news for Bitcoin has been countered by other, much less positive news. The BitMex trading platform is going to be sued by the CFTC for allowing U.S. customers to use its services without authorization.
In total, the litigation involves more than $11 billion in Bitcoin deposits on the BitMex trading platform.
Such news would have caused the Bitcoin price to drop sharply a few months ago. In this case, the price dropped slightly but nothing alarming. The market continues to become more and more mature month after month.
While the Bitcoin price seemed to be recovering to test again the $11K resistance, another important news hit the world on Friday, October 2, 2020: President of the United States Donald Trump tested positive for COVID-19.
Such news created uncertainty, which again caused the Bitcoin price to plummet. But again, the Bitcoin price fell only very moderately. The stock market also remained fairly calm when the news was announced.
It remains to be seen how the markets will react as early as Monday when the news on Donald Trump’s condition will be announced.
In any event, we have seen a neutralization of the Bullish and Bearish announcements this week. In the end, the market agreed on an equilibrium price of $10.6K. Bitcoin is still stuck in the $10K — $11K range, and no one knows how long this will last.
However, the approach of the U.S. presidential election could continue to introduce uncertainty in the markets. Greater volatility could develop again around the Bitcoin price in the coming weeks.
In the meantime, there is only one thing to do to stay calm: be a Bitcoin HODLER.
This will allow you to have some free time to learn more about Bitcoin and the economy in general. This will give you time to analyze what is going on in the field of Bitcoin mining with a war to take control of the Hash Rate power of the Bitcoin network that is starting.
With countries such as Iran, Venezuela, or Kazakhstan trying strongly position themselves in this sector, it is highly likely that we will witness a real war in the future that will be comparable to that of the conquest of space.
The United States is also starting to enter the dance in order not to leave the field open to China. The new cold war that is beginning between these two superpowers will cause damage in all areas.
As a neutral and apolitical currency, Bitcoin will be ideally placed to take advantage of it and become the next global reserve currency in the future. This is at least one hypothesis that I defend here: “In the Post-Dollar World That Is Shaping Up for the Future, Bitcoin Will Have a Major Role to Play”.
It’s up to you to make up your own mind about what lies ahead in this post-dollar world that is about to unfold.
I wish you all a good week and hope for movement in the Bitcoin price.
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