Last Week In Bitcoin is a series that discusses the previous week’s events that took place in the Bitcoin industry, covering all important news and analysis.
Despite briefly dropping below $30,000 earlier in the week, the past week has been relatively flat for bitcoin. While nothing significant happened to boost the price of Bitcoin or push it off the cliff, the market bounced back relatively easily after briefly dropping below $29,000 on some exchanges. However, by the end of the week, it started climbing again, breaching $34,000 by late Sunday evening. Despite the recent dips to $30K and below, I remain bullish on my outlook for the coming months for Bitcoin.
Much like last week’s chart, the long-term view of Bitcoin is relatively bullish. The chart above compares the bitcoin price with the stock-to-flow ratio in US dollars since its inception in 2009. Obviously, the data once again indicates that bitcoin is poised for a breakout over the coming months that will well exceed $100,000 per bitcoin. The Inventory to Flow model compares the inventory (availability) of an asset or commodity with the production flow.
Let’s take a look at the reasons for the over-optimism for the coming months. later this week, Bitcoin mining difficulty will drop to an all-time high. This usually has an upward effect on the price as miners expel less energy to acquire bitcoin. However, miners are being pressured by China’s crackdown, and miners are liquidating bitcoin and spending money to move their operations, or shutting them down altogether. This will likely take a few weeks, if not two months, to resolve.
Then we have El Salvador, an entire country that adopts bitcoin as a legal tender. This one definitely hasn’t been priced yet, not far off. Besides, other countries are talking about their intention to follow in the footsteps of El Salvador; earlier this week, Tanzania suggested it might do so. In September, every citizen of El Salvador He will receive $30 worth of Bitcoin It was dropped by inbox Chivo mobile wallet El Salvador will officially adopt Bitcoin. Millions of people will receive bitcoin in one of the largest airdrops to date.
In November, Taproot will be activated on the Bitcoin network providing improved security, better speeds, and smarter contracting capabilities. Bitcoin is growing faster than ever and is not reflected in the price. But again, we are constantly comparing bitcoin to fiat currency and pricing it in fiat currency, which is ironic given that we are rooting for bitcoin to bring down the aging global financial system and the fiat currencies it was built on.
The only price that matters is that 1 bitcoin equals 1 bitcoin.
Jack Dorsey and Elon Musk announced this week that they will Public discussion on Bitcoin later in July. This should be bullish, although with Musk you can never be sure.
Michael Saylor, while speaking to Bloomberg, said it is Not concerned with short-term price fluctuationsNor should we be. Saylor said Before that, there’s no reason why bitcoin can’t be a $100 trillion asset, and if that’s a conservative estimate, we’d still have a 20,000% increase in the cards over the next few years. This week, CME Group also announced the trading of micro-Bitcoin futures on the platform Over a million since May, which indicates an increased demand for anything Bitcoin.
Finally, there’s Q2 Holdings’ Advertising They will partner with New York Digital Investment Group (NYDIG) to provide more than 18 million customers with access to bitcoin trading. This will only continue to increase the adoption of bitcoin around the world and push other financial institutions to start offering the same or similar services.
While I would have liked it to be upbeat news, Jack Dorsey and Elon Musk’s decision to have a public discussion of Bitcoin sometime in July would prove to be a bearish event. musk proven over and over again He’s here to manipulate the market and continue his anti-Bitcoin disinformation campaign, and he’s unlikely to have changed his tune by the time the discussion begins.
In my home country, South Africa, we had a bear week for the history books. The government has repeat his stance In exchange for buying cryptocurrency abroad or sending money abroad to buy cryptocurrency. Africrypt scandal It has also promoted South Africa as the capital of crypto scams, after the collapse of the Mirror Trading International Ponzi scheme of 2020. Over the weekend, the UK government warned against it. Binance You cannot conduct a ‘regulated activity’ in the UK and you would certainly do the same with other exchanges.
Instead of paving the way for cryptocurrency adoption, some countries are increasingly pushing bans and anti-crypto narratives. It seems unlikely that this will stop anytime soon, and as bitcoin adoption grows, more and more countries will resist, trying to protect the control they exercise with their aging financial systems, driving citizens into financial turmoil.
My short term forecast is bearish. Bitcoin looks set to fall below $30K at least again in the coming weeks; But my long-term expectations are still overly bullish. As the charts and weekly rants continue to suggest, Bitcoin is heading for a breakout. It could take weeks or even months, but I’m sticking with my gun. Bitcoin brings financial freedom to billions of people, and as more individuals, institutions and even countries adopt Bitcoin, the price of fiat currency will increase.
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.