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When the world’s most volatile currency mingles with global politics, there’s bound to be drama. But who’s really pulling Bitcoin’s strings?
The Mighty Fall from $29,000: What Happened?
Bitcoin once comfortably settled at its $29,000 support, has now found a new home near $26,000. But how did this digital giant stumble from its secure heights? We’ll delve into the four weeks of red and understand why Bitcoin is now clinging to its new support level.
The Tug of War: Global Events Weighing on Bitcoin
World events are like puppeteers, and Bitcoin seems to be their favorite puppet.
The War in Ukraine:
The ongoing conflict in Ukraine is more than just a geo-political standoff. It’s shaking the very foundation of global financial markets, and yes, that includes the realm of cryptocurrencies.
The U.S. – China Trade War:
Ah, the classic superpower rivalry. While the U.S. and China continue their trade skirmishes, the global economy grapples with uncertainty. If you thought Bitcoin was immune to their spat, think again.
As the candlesticks dip and shadows lengthen, market sentiment mirrors this shift, prompting investors to tread with increased vigilance.
Date | Opening | Highest | Lowest | Closing |
|---|---|---|---|---|
| Jan 2009 | $0.00 | $0.00 | $0.00 | $0.00 |
| Dec 2010 | ~$0.23 | ~$0.29 | ~$0.19 | ~$0.25 |
| Dec 2011 | ~$3.10 | ~$3.25 | ~$2.05 | ~$2.52 |
| Dec 2012 | ~$13.30 | ~$13.56 | ~$12.57 | ~$13.28 |
| Dec 2013 | ~$1005 | ~$1153 | ~$693 | ~$730 |
| Dec 2014 | ~$319 | ~$322 | ~$312 | ~$315 |
| Dec 2015 | ~$363 | ~$466 | ~$355 | ~$430 |
| Dec 2016 | ~$959 | ~$982 | ~$925 | ~$968 |
| Dec 2017 | ~$14156 | ~$19666 | ~$13777 | ~$13860 |
| Dec 2018 | ~$3745 | ~$4252 | ~$3191 | ~$3658 |
| Dec 2022 | ~$18612 | ~$19250 | ~$16462 | ~$17255 |
Dovish Fed? More Like a Hawk on Bitcoin:
The Federal Reserve’s dovish monetary policy is more than just fancy economic jargon. It’s a vital cog in the machine that determines Bitcoin’s price trajectory.
Is Bitcoin a Security? The SEC’s Two Cents:
In a 2019 spectacle, SEC Chairman Jay Clayton deemed Bitcoin “probably not a security” due to its decentralized nature. While this might sound like a green light, the implications for Bitcoin’s market dynamics are profound and multifaceted.
Bitcoin Futures: A Stormy Forecast Ahead?
The recent data from Bitcoin futures paints a not-so-rosy picture. Bearish tendencies have emerged as Bitcoin struggles to gain bullish momentum despite the increasing chances of a spot ETF. With derivatives hinting at a possible drop to $22,000, Bitcoin enthusiasts have their work cut out for them.
The legal tussle between Grayscale and the United States Securities and Exchange Commission further adds to the drama. And the fact that multiple spot Bitcoin ETF requests were delayed? That’s just pouring salt on the wound.
Spot Bitcoin ETF Hype: A Fading Star? When BlackRock’s initial ETF filing caused a 19% rally, it seemed the stars had aligned for Bitcoin. But as quickly as it rose, it retracted, moving back to $26,000. The optimism surrounding Grayscale’s Bitcoin trust request failed to reignite the flame, leaving many investors puzzled and perturbed.
Bitcoin’s Morale & The Big Players
While the S&P 500 and gold inch closer to their respective all-time highs, Bitcoin seems to be dragging its feet. With just seven months left before its 2024 halving, the digital coin is not exuding the confidence many expected.
Moreover, the looming shadow of regulatory actions against the leading exchanges, Binance and Coinbase, is also a cause for concern. Rumors about the U.S. Department of Justice’s intent to indict Binance over allegations involving Russian entities have only added to the grim ambiance.
Oh, and speaking of ambiance, the Crypto Fear and Greed index currently sits at 40, tilted towards fear. Is it an overreaction or a justified sentiment? Only time will tell.
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