Good News Pushing Bitcoin
Is the cryptocurrency market back to race? It looks like it, but let’s start with Bitcoin.
Bitcoin has recovered the $23,000 level, and has dropped slightly in the last 24 hours. The rest of the market seems to be on the rise, so what’s next?
Bitcoin’s Return to the $23,000 Level, according to data by Coinmarketrate.com , is good news and is welcomed by many traders. This small step back by almost 0.8% in 24 hours is quite insignificant, but so far nothing can mean a return of the bullish trend, at least in the short term.
By restoring this symbolic bar, BTC will avoid further falls and the loss of the 200-day moving average at about $22,800. This 200-day moving average is a key area for Bitcoin. Trader Rekt Capital spoke about the fundamental role of this:
“Historically, BTC has been putting pressure to buy above this 200-day MA. However, if he fails to make a clean retest of this MA, it will confirm that this rebound is only a short respite before further decline”.
Today, fear prevails in the market, but investors and crypto traders have begun to show interest in the king of cryptocurrencies again, and the reason for this was a number of very good news.
Adoption Goes Ahead: Bitcoin between Chicago and El Salvador
We could follow a short ideal path, starting with El Salvador, the country that was the first in the world to include Bitcoin in its economy as a legal tender, and Chicago, where the most important derivatives and futures markets are located.
In the first case, in fact, there is the first data on international tourism, and this is excellent data, signaling that the unexpected step of President Nayib Bukele, at least from this high point of view, gave the country a great opportunity. Tourism has also grown dramatically, primarily thanks to Bitcoin, in a country that few people knew and visited before such a turn.
However, on the American side, it is in Chicago and it is at CME that a big breakthrough is expected. Bitcoin futures in euros will be quoted at the end of August. This product is likely to be less attractive than its counterpart in US dollars, but, nevertheless, it is a sign that financial interest in Bitcoin continues to grow, and the process of financialization is proceeding at an increasingly rapid pace.
The real pearl of the news is the company BlackRock
The news that the mainstream press couldn’t ignore, even if you first read about it here. BlackRock, the world’s largest fund and capital manager, has partnered with Coinbase to offer its customers access to Bitcoin and cryptocurrency purchases.
Coinbase’s bitcoin services will be integrated into Aladdin – this is an important step for the manager, who, at least until a few years ago, considered this crypto asset to be something that should not only not be on the list, but should also be kept as far away from as possible.
A step forward, which is also confirmed by the fact that Mastercard has publicly stated its desire to become a ramp for access to this type of asset.
The week that ended was also the week of Michael Saylor’s farewell to the post of CEO of MicroStrategy, which many regarded as a symbol of discontent in the board of directors due to Saylor’s reckless transactions with BTC.
Perhaps this is the case, although Sailor still retains the post of chairman, which, according to him, is enriched by his ability to trade in the market.
Fundamentals continue to improve
Although concerns about financial markets are far from over, the fundamentals of Bitcoin and the entire cryptocurrency market continue to improve. All the steps, the fruits of which can be reaped when the markets return to a calmer level.
The macroeconomic situation under consideration
Many observers point to the more than complicated macroeconomic context of recent months. Indeed, the slightest jolt in the global economy will certainly pull the cryptocurrency market down a bit. At the moment, the various available indicators do not give reason for optimism, but rather indicate an impending recession.
The key indicator, which will be published on August 10 — the consumer price index, may cause some tremors. The consumer price index measures price fluctuations for a basket of goods and services purchased by American households. It is used to determine the inflation rate from one year to the next. Therefore, it is the most important indicator for the markets.
The QCP market observer also points to the Fed’s monetary policy, which can have a decisive impact on the stock market and, accordingly, on the cryptocurrency market. In the event of a significant increase in interest rates, the market may experience another sharp drop.
Altcoins have been on the rise in recent days
Well, of course, we can’t help but say about altcoins. The good short-term condition of Ethereum should not make us forget about its still fragile situation. At the time of writing, Ethereum is trading in the price range of $1,700.
While Merge gives many investors reason to be optimistic, Ethereum has not yet demonstrated enough purchasing power for its price to rise significantly.
Among other leading altcoins, BNB on Binance shows good condition and is ahead of the rest of the market. It has grown by 4.10% over the last day, and by 9.25% over the last week. Despite the recent news about the losses caused by the introduction of KYC, investors are still enthusiastic about Binance and its own token.
Solana, despite the hacking and high media importance, also grew by almost 3.30%, but then decreased by 6.58% over the past 7 days.
But the main winner among the 30 largest capitalizations according to Coinmarketrate.com , became Flow. The blockchain, created by Dapper Labs, thus entices investors en masse and continues to impose itself as one of the leading solutions in the promising NFT sector.
A week that will be remembered
Today, there are opportunities to more closely monitor the evolution of Bitcoin in the world of institutional finance using MicroStrategy. Let’s see how the situation with Sailor will develop, and whether he will follow in the footsteps of Jack Dorsey last year, who, after his departure from Twitter, began to engage more actively in Bitcoin.
But, most importantly, how Bitcoin will react to all these and other news. But we must not forget about the macroeconomic situation in the world, which makes all world markets shudder.