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Bitcoin’s near-term future worries investors

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Bitcoin just posted its worst quarterly performance since 2018. It fell sharply over the quarter; 46% drop in its counter. What could be harder to digest: the withdrawal of certain institutional investors.

Plan B, the quantitative seer of the future of BTC, also expressed concern about his forecast of Bitcoin above $ 100K at the end of the year. In fact, this round trip of BTC below the $ 35K area and some times below $ 30K does not give the market too much reassurance.

Expiration of 445 million Bitcoin options

Bitcoin options statistics. Source: Bybt

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Another major event for the short term future of Bitcoin. You should be reminded that for the Bitcoin options expiration of the past four weeks, bears have always outweighed bulls. For this one, it looks like bulls might have a slight edge over bears. The ratio “call to put”Is 8% in favor of calls.

However, for bulls to win over bears, you need BTC above $ 34,000. As of this writing, Bitcoin is $ 500 below this bullish technical level. A colleague at Cointelegraph revealed that if Bitcoin hits $ 35,000, bulls’ earnings could drop from $ 7 million to $ 57 million. Conversely, if its price drops to $ 33,000, the bears’ earnings will drop to $ 38 million.

Note that everything will be played before 8:00 AM (UTC). Over the last twelve days, the price of Bitcoin has fluctuated between $ 30,400 to $ 36,400.

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What is the ideal level of support for the bull run?

There is quite a bit of differing technical opinion on this issue because the May Crash is not similar to others Bitcoin has seen in its history. For Peter Brandt, it only takes Bitcoin to keep its price above $ 29,000 for a bull run to be possible.

In light of the facts, the likelihood of BTC falling below this level is slim because during the downward trend it has only come close to this threshold twice. But, would that be enough to indicate the rally?

As for John Bollinger, he is watching the $ 35K- $ 36K and $ 41K levels very closely. For the creator of the Bollinger indicator, given the recent performance of Bitcoin, its price cannot drop below $ 31,000.

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Vincent Ganne, senior analyst for Tradingview, has repeatedly said that Bitcoin is in range. For the march to the bull run to be initiated, it would be necessary to reproduce another session of February 8, 2021. On that day, Bitcoin had gained $ 7,310 (+ 18.79%) from $ 38,886 to $ 46,196. Vincent also thinks that crossing the $ 42K mark represents a strong bullish signal.

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Bitcoin (BTC) Lightning Network Capacity Tops 2,900 BTC, Twitter Can Boost Further

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While Bitcoin (BTC) has remained volatile for most of September 2021, the developments taking place with the Bitcoin Lightning network are going strong.

As we know, the Bitcoin Lightning Network is a “layer 2” payments protocol designed atop the Bitcoin blockchain network. There’s an exponential growth in the Bitcoin Lightning Network capacity which has now surged past 2,9000 BTC, as per data on Glassnode.

Courtesy: Glassnode

This year of 2021, in particular, has been very strong considering the Bitcoin Lightning Network growth. Since the beginning of 2021, the Lightning Network capacity has surged by 160%, while the number of active nodes and the number of channels have grown nearly by 100%.

As of press time, the number of active nodes on the BTC Lightning Network is 15,697 while the number of active channels has shot past 73,000. On the other hand, some big companies like Twitter are looking forward to taking benefit of these developments.

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Twitter Can Boost Lightning Network Use

Last week, Twitter announced the Bitcoin tipping feature making it one of the biggest BTC adoption news by a tech giant. Interestingly, Twitter will be leveraging the Bitcoin Lightning Network to facilitate payments and BTC tipping.

To facilitate its Bitcoin tipping feature, Twitter has partnered with payments application Strike built atop the Bitcoin Lightning Network. The Twitter announcement read:

“People can now seamlessly tip with Bitcoin using Strike – a payments application built on the Bitcoin Lightning Network that allows people to send and receive Bitcoin.

People in the eligible markets will have to sign up for a Strike account and add their Strike username to receive Bitcoin tips over the Lightning Network. You can use any Bitcoin Lightning wallet to send tips to someone’s Strike account”.

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As Bitcoin adoption continues to increase, the Bitcoin Lightning network will play a crucial role in increasing the Bitcoin utility. The participation of such big players will further boost the adoption curve.

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Bitcoin Can Become The 21st Century Digital Gold, Says Deutsche Bank’s Macro Strategist

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While Bitcoin can continue growing to become the “digital gold,” Ethereum has the ability to be the “digital silver,” according to Marion Laboure.

Marion Laboure – Macro Strategist at Deutsche Bank – believes bitcoin has the potential to become the “digital gold” of this century. However, she expects the cryptocurrency’s price to be “ultra-volatile” in the next few years.

Laboure also praised Ethereum’s use cases, labeling the asset as the “digital silver.”

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BTC – The Gold of The Future

According to Marion Laboure – Analyst and Macro Strategist at Deutsche Bank – Bitcoin possesses all the necessary qualities to step in when the world suffers from rising inflation, doubt, and fear due to the COVID-19 pandemic and the governments’ actions. As its supply is fixed (there will be no more than 21 million BTCs in existence), she stated that the asset could be a successful choice as a protection against the growing inflation.

The increased control by authorities over the population could be another factor that would make bitcoin attractive to the people. Laboure reminded that in such cases, throughout the years, humankind has turned towards assets that were not under the governments’ jurisdiction, such as gold. With that said, the executive believes BTC could become the “21st-century digital gold.”

It is worth noting that Deutsche Bank had a different opinion on the matter in the recent past. Last year, a report from the German multinational investment bank stated that bitcoin’s high volatility is an obstacle that makes the digital asset not a “reliable source of value.”

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According to Laboure, though, BTC’s enhanced fluctuations would not last forever. The asset remains “risky” as of the moment and could be “ultra-volatile in the foreseeable future” but just like gold, which has also experienced this issue, BTC would eventually overcome it.

While bitcoin is the pioneer in the crypto space and the largest digital asset by market capitalization, Laboure also praised Ethereum’s merits. She pointed out that it is more than a cryptocurrency as it offers many applications and use cases such as decentralized finance (DeFi) projects.

In fact, most of the trendy non-fungible tokens (NFTs) are part of the Ethereum blockchain and she noted ETH could be the “digital silver.”

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Laboure concluded that no other cryptocurrency would become stronger than Bitcoin or Ethereum in the next five years.

Marion Laboure
Marion Laboure, Source: Deutsche Bank

Crypto’s Obstacles

Deutsche Bank’s strategist also spoke about the disadvantages of the cryptocurrency space with lack of regulation being the main one. She sees the industry much more settled once this issue gets solved. The environmental concerns that crypto mining causes are the other big hurdle:

“In one year, Bitcoin uses around the same electricity as the entire population of Pakistan (c.217M people),” she reminded.

This has been a growing concern this year, but the number of companies and parties aiming to solve it has increased exponentially as well. For instance, several leading cryptocurrency exchanges have already launched initiatives that would make them carbon neutral, including FTX, BitMEX, and Gemini.

CBDCs, Cash, And Crypto

Laboure also gave her two cents about central bank digital currencies. She prefers decentralized cryptocurrencies saying that the centralized nature of the CBDCs would not be attractive to society. In any case, she believes both assets together with cash would successfully co-exist in the economic network.

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On another note, Deutsche Bank’s CIO, Christian Nolting, opined somewhat differently on the matter. Back in May, he said that the impending launch of CBDCs would be a major threat to bitcoin in terms of serving as a currency:

“A widespread introduction of CBDCs accompanied by higher regulation of cryptocurrencies could create a more challenging environment for crypto assets as some of their advantages compared to traditional financial assets would fade in the longer term.”

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Bitcoin goes up again and valuation reaches 2% and tokens reach up to 19%.

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Even as criticism from China intensified and the weekend slumped, cryptocurrencies started the week in recovery.

With a slight increase in the early hours of this Monday (27), Bitcoin was already recovering 0.93%, reaching US$ 43,621. In 24 hours, the currency has accumulated 2% in appreciation.

Ether, the currency linked to the Ethereum blockchain, started the day up 0.83%. In 24 hours, the currency has already recovered more than 5% of the value lost last Friday and Saturday, with the impact of statements from China.

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In addition to them, other currencies also show signs of recovery. According to TradingView data, altcoins such as Cardano, XRP, Dogecoin and Polkadot also recovered.

Cardano’s currency, for example, recovered 0.67% of its value, reaching $2.22. XRP rose about 1.84% to $0.96.

Solana’s cryptocurrency stays with its big moves, both down and up. This Monday morning, the currency was up 8.44%, returning to US$ 147.05.

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The cryptocurrency meme, Dogecoin, rose slightly compared to the market, rising only 0.28%. According to the TradingView charts, the currency was selling for $0.207530 at 8:00.

Also, tokens from games like AXS, from Axie Infinity also rose again after the weekend crash. With an increase of 2.01%, the AXS returned to the level of US$ 65.04. The ALICE token, from My Neighbour Alice, was also up 3.37%, reaching US$ 10.27.

Finally, the ATLAS tokens, from the Star Atlas game, and the BAKE, from the BakerySwap, were also high this Monday morning. While ATLAS rose 6.88% to $0.08, BAKE rose more than 16% to $1.74.

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China’s critics continue to rock the cryptocurrency market

China’s central bank said last Friday (24) that all transactions related to cryptocurrency are illegal in the country.

The People’s Bank of China (PBOC) has also stated that it will prevent financial institutions, payment companies and Internet firms from facilitating the trade in cryptocurrencies and will strengthen monitoring of the risks of such activities.

After the official statement, the popular Huobi exchange blocked new users from registering with a Chinese phone number. In a statement on Sunday it said it “would phase out existing user accounts in mainland China” by Dec. 31, as reported by Bloomberg.

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China’s government has intensified its crackdown on cryptocurrencies, and its efforts to restrict trade and mining have increased, which has heavily impacted the price of cryptocurrencies. The sharp falls come to worry specialists.

One of the reasons China wants to ban the use and mining of cryptocurrencies is energy consumption. According to the Beijing government, the vast amounts of electricity used in the country come from coal plants.

With the banning of cryptocurrencies in the country, the intention is to reduce carbon emissions and also to inspect cases of financial fraud that had been taking place in Chinese territory. The country recorded more than $2 million in fraud in a few weeks. The cases of money laundering and cryptocurrencies also worried the local government.

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Also read: Vietnamese project promises to be the next Axie Infinity and raises US$1.7 million

Also read: Thetan Arena: What is known about the new play-to-earn game?

Read also: Analysis: China stocks drove Bitcoin price this week

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