Just after the global economic recession of 2008, bitcoin erupted out on the financial scene. Although the asset could not get much attention in it’s first few years, the past couple of years have proved to be quite exciting for the asset. The 2017 bull run of bitcoin is unknown to none as the asset almost touched the $20,000 mark in December. Bitcoin trading has gained serious traction since then. But alongside this, bitcoin trading has become one of the tougher options for the investors entering this arena owing to bear run that has continued on for more than a year now. Besides, the institutions and major giants from Wall Street also hold back from entering the arena of bitcoin trading. Here are some of the reasons why the situation is as we see it today.
The connotation attached with bitcoin since the beginning has not been largely positive in the media. Since the market is new and technological innovation in blockchain is being made at a very rapid pace, there aren’t many laws and regulations surrounding the asset. Due to this, a lot of negative, illegal and fraudulent activities have found their ways to enter this world. Owing to this, bitcoin trading has not been one of the favorite options of the investor community and Wall Street in general.
A plethora of scams is seen in the bitcoin world. Many investors from across the globe have lost a large amount of money to these scams. Besides, the price of bitcoin is highly volatile. One day the asset is going up with massive greens and the very next day, it is down on its knees resulting in the loss of a large amount of money for the investors. Making things worse, the price is highly prone to manipulation by big whales present in the game and hence bitcoin trading becomes too unnatural of an option for the investors.
The regulatory body in charge of approving of bitcoin exchange-traded fund (ETF), the United States Exchange Commission (SEC), has also not approved it owing to the issues like manipulation and prevalence of fraudulent activities. Putting all the pieces of the puzzle together, it is the evolutionary issues linked with bitcoin that hold institutions and giants from Wall Street from touching this asset.
But as we move into 2019, developments are being made in the regulatory arena. Different regulatory frameworks are being put in place so that investors in the bitcoin trading community can be provided with secure frameworks of operations.
It is too early in the bitcoin world as of now. Just like every technological innovation, it seems that bitcoin also needs its time to grow and mature. Things will likely change as we move forward. Although bitcoin trading might not be the most favorite option of the institutions as of now, it might become so in the future.
Bitcoin (BTCUSD) weekly forecast on February 18 — 24, 2019
Cryptocurrency Bitcoin (BTC/USD) is trading at 3587. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend for Bitcoin. At the moment, cryptocurrency quotes are moving near the upper border of the Bollinger Bands indicator.
Bitcoin (BTCUSD) weekly forecast on February 18 — 24, 2019
As part of the Bitcoin exchange rate forecast, the test level of 3820 is expected. Where should we expect an attempt to continue the fall of BTC/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 2700. The conservative area for selling Bitcoin is located near the upper border of the Bollinger Bands indicator at the level of 3850.
Cancellation of the option to continue the decline in Bitcoin will be the breakdown of the area of the upper border of the Bollinger Bands indicator. As well as the moving average with a period of 55 and closing of quotations of the pair above the area of 4250. This will indicate a change in the current trend in favor of the bullish for BTC/USD. In the event of a breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration of the fall of the cryptocurrency.
Bitcoin (BTCUSD) weekly forecast on February 18 — 24, 2019 implies a test level of 3820. Further, it is expected to continue falling to the area below the level of 2700. The conservative area for selling Bitcoin is located area of 3850. Canceling the option of falling cryptocurrency will break the level of 4250. In this case, we should expect continued growth.
BTCUSD Analysis: Bitcoin still trading in a bearish consolidation [Video]
Any upside moves are classified as corrective ahead of what could be the next downside extension and bearish continuation. It would take a break back above 4,380 at a minimum to take the immediate pressure off the downside. Next critical support comes in the form of the July and September 2017 lows, around 2,000 and 2,975 respectively.
In this analysis, we take a look at Bitcoin each day, highlighting all of the need to knows for anyone looking to extract up to date information about major levels and relevant trends, both short term and longer-term. The analysis is designed for the trader, investor and even those simply holding the crypto asset, looking for an idea of where they may want to consider making that next conversion.
The cryptocurrency update is new each day and is presented with an added layer of animation, in an effort to make the analysis as engaging as possible, while also communicating the message with respect to key trends and levels in an easy to understand, seamless manner with great value add to all.
Are Central Bank Digital Currencies (CBDCs) Net Positive Or Negative For Bitcoin And Crypto Assets?
Central Bank Digital Currencies (CBDCs) have been analyzed by several banking institutions around the world, specifically by several central banks in different countries. However, they are different than virtual currencies such as Bitcoin (BTC). How would the issuance of CBDCs affect Bitcoin and the whole crypto market?
There are some important differences between Bitcoin and CBDCs. For example, Bitcoin is permissionless, decentralized and censorship-resistant while CBDCs are permission, centralized and censorable. Thus, they are almost contrary to Bitcoin. While the most popular cryptocurrency provides freedom to users, CBDCs allow governments to have larger control over their populations.
A few days ago, the popular investment bank JP Morgan unveiled a stablecoin called JPM Coin that would be used to make transfers between customers in just a few seconds. Although JP Morgan’s CEO Jamie Dimon has been against virtual currencies, it seems that the bank will be using blockchain technology to power their virtual currency.
There were several individuals in the market claiming that the new JP Morgan digital coin killed Bitcoin, or at least, it is going to kill the most popular cryptocurrency in the market. However, it is important to understand that these coins will never be similar and work in a completely different way. CBDCs and stablecoins issued by financial institutions such as JP Morgan work in a centralized and controlled way.
Indeed, these new digital assets do not seem to present a threat to cryptocurrencies such as Bitcoin. SWIFT could be affected by these new coins. SWIFT is the mainstream and most popular system to perform cross-border payments. This system has proven to be slow and costly for many financial institutions and banks all over the world. Indeed, Ripple’s services could also be affected by the growth of new CBDCs.
CBDCs legitimize that virtual currencies are the future of money. Because of this, it might be possible for Bitcoin to distance itself from drugs and criminals. At the same time, with CBDCs individuals will discover that there are several advantages of using digital assets.
Individuals will clearly have their funds frozen at any moment using CBDCs if the financial institution regulating the asset decides so. Moreover, their accounts can be suspended and users would not be able to use these funds anymore.
There are some crypto experts that believe that CBDCs could be very harmful to societies. For example, China is currently trying to control its population with new surveillance systems related to how individuals use their funds.
Crypto fiat (i.e. government controlled permissioned cryptocurrencies) will be the biggest battleground globally for human rights over the next decade. China is leading the way, many other countries, including some big western democracies, will follow. https://t.co/8BqfmBJ2mP
— Ari Paul (@AriDavidPaul) February 13, 2019
With CBDCs, people will realize that there is no more freedom and that the government is ultimately controlling everything. This is why Bitcoin could grow as a safe haven where users can feel free to use their funds as they want without being controlled by governments.
That does not mean that Bitcoin will be used to perform illegal things. It means that users will protect their privacy and what they do with their funds.