Fed, futures and fundamentals: 5 things to keep in mind about Bitcoin this week

Bitcoin (BTC) begins another week in bullish mood as the obstacles line up to shape the price trajectory.

Cointelegraph presents five factors that determine where the BTC/USD may go in the coming days, and what traders should look out for.

 

All eyes on the Fed and US inflation

Stocks hit records last week with the S&P 500 reaching all-time highs. Despite a lesser overall impact on Bitcoin, movements in the macro markets are still more than capable of overflowing into the cryptosystem.

The upward momentum continued on Monday, with stock futures rising, but with a sense of fear building over the upcoming U.S. Federal Reserve speech.

The markets were waiting for news on inflation, which rumors say could reach 4%.

This would be a perfect storm to lift the safe havens, according to analysts, in an environment that has already sent the US dollar index to its two-year lows and flooded the market with excess liquidity from quantitative easing.

This Bitcoin whale sold BTC at a price of $12,000 after holding it for 2 years

The news will come from Federal Reserve Chairman Jerome Powell during his annual Economic Policy Symposium in Jackson Hole, Wyoming, on Thursday.

„More clarity will no doubt be sought through this week’s Jackson Hole Symposium,“ Ben Emons of macro-analysis firm Medley Global Advisors told Bloomberg on Monday.

U.S. futures were up; Asia, meanwhile, set a bullish tone as Washington said it would not block China’s WeChat social network, and owner Tencent shares rose more than 4% as a result.

Analyst points to USD 9,600 to buy in case of a fall

In short order, Bitcoin pleased the analysts at the beginning of the week. For Cointelegraph Markets analyst Michaël van de Poppe, a move to lower levels was now less likely after the BTC/USD avoided a repeat of levels below USD 11,500 on Sunday night.

In a video of Sunday’s trading analysis, van de Poppe added that, in the event of a drop, the level to „buy“ that needed to be paid attention to would nevertheless be below USD 10,000.

„The actual level I’m looking at for buy levels in case of a drop is between $9,600 and $9,900,“ he summarized.

Concern about a fall below five figures had become less common among commentators; Van de Poppe mostly dismissed rumors of a decline below $8,000.

The last time Bitcoin traded below $10,000 was in late July.

Bitcoin’s Difficulty Reaches a New Record

The difficulty was adjusted by rising 3% to reach new historical highs, but the trend in the hash rate was less.

According to data from the monitoring resource BTC.com, the difficulty increased by 3.6% on Monday to reach 18.17 billion.

Bitcoin.com wallet update allows access to interest earnings
The new record suggests that the miners‘ participation in the network is stronger than ever, and the competition is reflected in how burdensome it is to solve the equations in the blockchain.

The difficulty is automatically adjusted and is an essential feature of Bitcoin System as self-regulating hard money. The emission remains fixed regardless of the high or low difficulty.

Meanwhile, the hash rate decreased by about 8% in the last seven days, according to estimates, currently hovering around 119 exahashes per second (EH/s).

Given the imprecise nature of the hash rate measurements, it is likely that the number will normalize after the hardship adjustment, continuing a broad upward trend instead, as just after the May halving, miners‘ earnings were reduced by 50% overnight.

George Ball, ancien PDG de Prudential, rejoint le camp Bitcoin; L’appelle un «incontournable» pour les investisseursGeorge Ball Acheter Bitcoin

George Ball, ex-PDG prudentiel maintenant PDG de Sanders Morris Harris, a déclaré dans une récente interview avec Reuters qu’il avait changé sa position sur Bitcoin Machine et les crypto-monnaies. Il rejoint la liste croissante des élites qui reprennent leurs paroles sur l’actif numérique, en particulier à la lumière du récent ralentissement économique mondial.

Ball a expliqué au présentateur de Reuter, Fred Katayama, qu’il était un adversaire des crypto-monnaies, de la blockchain et autres, mais qu’il avait changé de position sur le sujet. Selon lui, ces actifs semblent maintenant être une meilleure option disponible pour les investisseurs ou les commerçants «comme base».

«Je n’ai jamais dit cela auparavant, mais j’ai toujours été un adversaire de la blockchain, de la crypto-monnaie et du Bitcoin

Mais si vous regardez maintenant, le gouvernement ne peut pas stimuler les marchés pour toujours. Les inondations de liquidités prendront fin tôt ou tard.

Ainsi, l’investisseur ou le commerçant très riche se tourne probablement vers Bitcoin ou quelque chose comme ça comme un aliment de base. Ball a déclaré dans l’interview.

Les investisseurs et les traders deviennent de plus en plus optimistes et positifs sur ce que Bitcoin a tendance à rapporter dans les jours plus tôt, car la crypto-monnaie a fait preuve de résilience face aux reculs. Malgré la pandémie de coronavirus qui a laissé des impacts négatifs sur l’économie mondiale, le prix du Bitcoin a considérablement augmenté et continue de monter en flèche.

Bien que la pièce ait chuté en mars à son plus bas niveau annuel, elle a augmenté rapidement depuis lors, alors que de plus en plus d’investisseurs se tournent vers Bitcoin pour se protéger contre la jeune économie.

Katayama de Reuter a exprimé à quel point il était étonné d’entendre Ball parler de manière impressionnante de Bitcoin. Je n’aurais jamais pensé vous entendre dire ça à propos de Bitcoin. il a dit

Fait intéressant, George Ball n’est pas le seul investisseur ou institution financière grand public à avoir changé sa perspective sur Bitcoin ces derniers temps.

Plus tôt cette année, les analystes de JP Morgan ont finalement admis que les investisseurs pouvaient détenir Bitcoin comme couverture contre les monnaies fiduciaires défaillantes. Plus récemment, le géant du logiciel MicroStrategy a investi environ 250 millions de dollars dans Bitcoin , désignant la crypto-monnaie comme son principal actif de réserve de trésorerie.