The price of Bitcoin is rolling back from $ 11,000. USA while hashing speed increases
The value of Bitcoin may pull back from $ 11,000 but the coin is strongly supported by solid foundations. The network was created to protect against the recklessness of banks, and everyone is well aware of the impact the presidential election in the United States will have on the price policy of the dollar and Bitcoin, the cue Ball is preparing for a breakthrough.
Confidence in BTC and its network continue to grow
A few years ago, during the Great financial crisis (GFC), Bank greed led to a catastrophic failure in the United States, an event that snowballed and turned into a global financial crisis that opened the way for Bitcoin.
As the Federal reserve spirals out of control, printing billions of greenbacks and thereby weakening them, the PTS continues to strengthen.
At the moment, the hashrate exceeds 135 EH / s, which indicates how miners are investing more money in the technology that is so dependent on their presence. As the network adjusts after halving and falling, it becomes more difficult to mine BTC when the network complexity subsequently increases.
It is noteworthy that the mainstay of the network finds its confirmation just two months before the us presidential election, for which there is a lot of uncertainty. Despite the fact that the cue Ball is resistant to censorship and does not depend on its distribution to weaken the effect of political dominoes, the coin positions itself as an alternative means of saving. Like gold, BTC may be the main beneficiary before the election.
The Bank of England considers negative interest rates
Last week, the Bank of England (BoE) unexpectedly said it might consider negative interest rates due To brexit uncertainty.
This comes against a backdrop of soft monetary policy, with interest rates cut to 0.1% as the Central Bank increased its bond purchases as part of its aggressive quantitative easing to stave off a recession.
After the UK leaves the EU, the pound may fall, due to concerns about inflation and the risk of a recession. That’s when cryptocurrencies should be considered a salvation.
Given Bitcoin’s ingenious architecture, designed to contain inflation through scarcity, and its gradual adoption at the institutional level, especially in the US and some European countries, it is highly likely that experienced investors will dump the pound in exchange for BTC, US dollars, or gold in the next few weeks, as part of risk management.
Bitcoin price analysis
The price of the cue Ball in the last week of trading is ahead of both the dollar and ETH, which added six percent and three percent, respectively.
After days of higher highs, the past week ended with a drop, another deviation from $11,000. Notably, the bulls were unable to reverse the sharp losses on September 3. Based on the volume analysis, the growth since the beginning of September was observed at low trading volumes. This implies weak participation and liquidation as part of profit-taking.
Unless there is a sharp break above the highs with high trading volumes exceeding the turnover on September 3 (Coinbase data), bears are likely to steer.
At the time of writing, the flagship crypto asset was trading at $10,620.