Last Week in Bitcoin is a new segment covering the week that happened in Bitcoin, with all the important bits and some analysis.
Despite what the charts and the current price might say, last week was a bullish week for Bitcoin. Billionaire Ray Dalio has asserted that he holds bitcoin, activist investor and former bitcoin prophet Carl Icahn has expressed interest in pursuing digital currencies “in a big way” and Texas has pushed through a bill that provides a legal framework for bitcoin in the state, paving the way for Texas to become a crypto hub. China And the Iran They cracked down on Bitcoin mining for the umpteenth time, and prominent investors Elon Musk and Michael Saylor announced the formation of their Bitcoin Mining Board.
scheme to look
The chart above, courtesy of Bloomberg’s Global Macro Investor platform, compares bitcoin’s performance between 2010 and 2013 and between 2016 and now. As you can clearly see, we are still behind on a decent bullish race that will likely peak somewhere around $400,000.
Of course, there is a lot more eyes to behold on Bitcoin this time around than a decade ago. Fear, uncertainty, and suspicion have increased as the media, billionaires, and many more have accumulated anti-crypto sentiment. As we have seen over the years, Bitcoin is a global community and its sole focus is a decentralized financial system where the power is in the hands of the people. Some might even say negative news is good news because it will introduce people who are new to the idea of bitcoin, and while they research it, they are very likely to decide to invest themselves.
Bullish: short term
Leading investors are piling on Bitcoin almost weekly now. past weeks newsletter That Ray Dalio owns bitcoin and Carl Icahn cares too, just repeating that no one can ignore bitcoin as a logical investment anymore. As prominent investors join the board, Bitcoin is seen as more legitimate to earlier skeptics which often has a positive effect on the overall price, further fueling the rally. This current range is likely to be plotted somewhere in the $400,000 region over the next year, as shown in the chart above, and discussed in My previous article comparing Bitcoin’s performance after each halving. The last halving happened last year, ushering in the current bull market.
Bearish: long term
In an almost ironic twist, my reasons for being bearish in the long term are almost the same as the reason I am bearish in the short term. Billionaire investors and public companies joining the Bitcoin bandwagon is a good and a bad thing for price action. If Bitcoin eventually reaches close to $400,000, the billionaires are likely to liquidate their positions with significant short-term profits on hand. Likewise, public companies that have seen a huge return on investment are more likely to see active investors paying to sell their holdings and pay dividends to investors. Microstrategy should be safe because Michael Saylor controls most of the voting rights, but what about the rest of the publicly traded companies?
I have no doubt that the current market in an intense decline is Bitcoin finding its new bottom and stabilizing before the next boom. Yes, there will likely be several drops of 20-30% before bitcoin hits its next peak, as we saw during the 2017 bull run. However, as more and more people and companies embrace bitcoin as the future of the system. Financial, the price should reflect the same.
It is important to keep an eye on Texas and its legislators. As the country opens up to a more favorable legal framework, it is likely to invite investors and businesses alike to move to Texas, and this should inspire more states and perhaps even some countries to follow suit and adopt Bitcoin. Look at Texas as a running experience right now, but it’s likely to be the start of the big things to follow.
Efforts to ban or curb bitcoin mining by some countries are another cause for concern, especially given the amount of bitcoin hashing that comes from China. Yes, on the positive side, this should spread our mining operations around the world, which will have a positive impact in creating a more decentralized hash rate. On the other hand, the formation of the Bitcoin Mining Board is also a cause for concern, as it drives some form of centralization into Bitcoin mining, in the event that more miners move operations to the United States and join this board, the prospect of a new form of centralization looms. horizon mining community
What I did not mention above is an important piece of information that came to light this week – Apple’s interest In appointing an executive with experience in coding. Some may speculate that Apple may be preparing its own currency, but that is unlikely. The most likely scenario is that they are open to bringing Bitcoin and other crypto payments to their Apple Pay platform, potentially allowing cryptocurrency for app payments and hardware acquisitions. This would be very bullish. However, it is unlikely that Apple will use some of its $200 billion in cash to invest in Bitcoin.
Overall, my feeling is that this is the perfect time to pile on some seating and build your collectibles. The market is stabilizing, and even if there are more declines over the next week, an uptrend is imminent.
This is a guest post by Dion Guillaume. The opinions expressed are their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.