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Bitcoin Drops Significantly As The Bullish Rally Gradually Ends

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Bitcoin recently lost 5% of its recent price. Many experts speculate that this drop might be due to the U.S. infrastructure bill.

The ending of last month – July 2021 was a bit favorable for Bitcoin Price. However, it seems the rally is now declining as most investors are afraid of the Bill. The price surged to $42,400 a few days back but did not drop to $39,667.19.

Many experts, including Maple Finance Daniel, believe that this drop might be because many people are still uncertain about the Infrastructure bill.

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The Bill Causes Bitcoin To Fall Below $40k Mark

The first version of the Infrastructure Bill concentrated on outlining the requirements and widening the scope of the word “broker.” This was to clarify investors, decentralized exchanges, and others who may transact with crypto.

According to Kim, the first reaction to this Bill was uncertainty, fear, and doubts. As a result, many exchanges started to remove their funds from thereby and automatically reduce liquidity. With such a situation, the price of crypto dipped low.

Last month, the FTX’s BTC reserve increased while the Binance Bitcoin reserve lowered by 70,000. Kim observes that this fluctuation also contributes to the panic in the community. Before all these issues, Bitcoin has pushed its resistance close to $42,000.

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Bitcoin Drops Significantly As The Bullish Rally Gradually Ends
After an incredible growth this weekend, Bitcoin has once again bottomed | Source: BTCUSD on TradingView.com

Even the coin maintained a “ten-day winning streak” on Sunday, August 1st, the longest for 8 years. But, unfortunately, that same evening, the price fell by 5.5% within a 24 hours range.

A Brief On The Bill

For now, the Bill is still in debate in the U.S. Senate. The aim is to increase tax receipts to fund a one trillion dollars infrastructure set to improve the country. However, the Senate is planning to raise $28 billion from crypto transactions.

Since the Bill emerged, many people in the crypto community have voiced their displeasure about it. Some people are even saying that the bill might cut across every activity related to crypto in the industry.

However, last Sunday, another version of the bill emerged with a narrower definition of what broker means to all those who provide assets transfers.

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But in this upgraded version, there is no direct mention of decentralized exchanges. But, there is no direct exclusion of software developers, miners, node operators, or others.

Meanwhile, the Options market has taken reaction to the recent Bill. Before now, Bitcoin has been gaining a bit since July. Also, listed option on prominent exchanges has been recording a lot of buying interests.

But this news has pushed many cryptocurrencies down, including Link, Theta, and even XRP.

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Bitcoin Drops as China Declares Crypto-Businesses Illegal

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  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

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Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

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Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

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Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

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“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

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In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

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However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

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“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

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If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

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“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

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