The Salvadoran President Makes Predictions about Bitcoin for 2022

Alexander Salazar
-
0
The Salvadoran President Makes Predictions about Bitcoin for 2022

Bukele predicted that more countries would adopt BTC as legal tender, but only the Central African Republic has done so. Although he said the launch of the volcano bonds would awaken interest, the recent price drop in the overall crypto market has prevented it.

Nayib Bukele, the president of El Salvador,  has posted several predictions about Bitcoin for 2022 on his Twitter account. However, none of them has come true almost six months later, and they seem to move away.

All the tokens in the crypto market, especially Bitcoin (BTC), have suffered a sharp drop over the last few weeks. Its price has dropped by 69.8% from the high of nearly USD 68,000 it reached in November 2021.

About a year ago, the Salvadoran Legislative Assembly approved the so-called Bitcoin Law, establishing that cryptocurrency as legal tender. In addition, the government has invested over USD 160 million in BTC and Bitcoin bonds associated with the launch of its Chivo Wallet.

The Price of Bitcoin Will Rise to USD 100,000

The Salvadoran president predicted that the price of Bitcoin would increase to USD 100,000 this year. However, that is far from reality as it has dropped by 21%, reaching a 2020 low of USD 17,700.

An announcement by the cryptocurrency platform Celsius Network was one of the reasons for the recent fall. They suspended all transactions and stopped digital asset withdrawals, arguing extreme conditions in the crypto market.

President Nayib Bukele has announced ten Bitcoin purchases by El Salvador since September 2021. The government has accumulated 2,301 BTC purchased at an average of USD 47,500 per unit. That indicates that the Central American country has lost about USD 56 million due to the recent crypto market crash.

More Countries Will Adopt Bitcoin as Legal Tender

One of the predictions by Bukele that would boost the adoption of cryptocurrencies was that more countries would imitate El Salvador.

However, the only other country that has adopted BTC as legal tender so far is the Central African Republic. It is relevant to know that this nation has been under civil war since 2012.

Other countries have increased their interest in cryptocurrencies, but most have limited themselves to setting limits or launching investigations into CBDCs.

According to the Atlantic Council, 109 countries have become interested in CBDCs, but only ten have implemented them.

The Launch of the Volcano Bonds Will Create Excessive Demand

Bukele also predicted that the launch of the volcano bonds would awaken interest in them, creating excess demand. However, the government does not know when to do it, and finance minister Alejandro Zelaya has said the price of Bitcoin is still too low.

Experts consider that the recent drop in prices and the loss of value in the overall crypto market have prevented investors from purchasing cryptocurrency-backed bonds.

El Salvador must pay a USD 800 million bond maturing in January 2023. In addition, risk rating agency Moody’s downgraded the debt rating of El Salvador to CAA1, increasing fears of a possible breach.

Bitcoin is trading at around USD 20,886 and has accumulated a 2.3% gain over the last 24 hours. While its daily trading volume is above USD 25.87 billion, its market capitalization is about USD 398.37 billion, according to CoinGecko.

By Alexander Salazar

The Weekly Technical Analysis of the Bitcoin Price Indicates a Respite

Alexander Salazar
-
0
The Weekly Technical Analysis of the Bitcoin Price Indicates a Respite

The price reacted positively to the support zone around the USD 19,000 area, where the 2017 bullish rally stopped. The scenario could be discouraging if the bearish trend increases and the price loses support at USD 18,500.

After the sharp drop in the price of Bitcoin (BTC), a rebound is likely to begin. The following technical analysis shows that the exhaustion near USD 18,500 might give way to a respite in the coming days.

Bitcoin is trading at around USD 20,930 and has accumulated a 2.2% gain over the last 24 hours. While its daily trading volume is above USD 25.72 billion, its market capitalization is about USD 398.56 billion, according to CoinGecko.

There are still no signs that the price has bottomed out, but several metrics indicate that it is already a long-term opportunity.

A graph shared by analyst Will Clemente on Twitter shows that Bitcoin is sitting below its 4-year trend. He says this has only happened three times in the history of the pioneering cryptocurrency. The previous two occurred during the bottom of the 2015 bearish market and the crash caused by the COVID-19 pandemic in 2020.

Weekly Technical Analysis and Forecast of the Bitcoin Price

The daily BTC/USDT chart shows that the price reacted positively to the support zone around USD 19,000. That is the area where the 2017 bullish rally stopped.

A price motivating extreme greed a couple of years ago now fuels fear among investors. That indicates the long-term trend of which the current situation is just a necessary correction.

Analysts now wonder how far the price will drop before resuming the dominant trend again.

Although no signs indicate that the price has bottomed out, recent behavior suggests that at least one significant rally will begin shortly.

While the Relative Strength Index (RSI) is in an oversold zone, short-term bearish momentum is running out of relevant support. A respite is healthy and necessary for the price to recover. If the latter breaks through resistance at USD 22,583 in the process, there might be a significant pullback.

The Price May Have Bottomed out by There Are No Confirmations

The price is breaking through the 200-week SMA, which has usually served as support to search for bottoms from previous bearish markets.

The RSI is as oversold as at the bottom of the 2018 bearish market and even lower than the 2020 COVID-19 crash.

However, a bearish weekly candlestick is closing but has not yet shown any significant signs of exhaustion.

The reluctance of buyers suggests that there should be at least a multi-month sideways range before resuming the higher trend.

If the bearish volatility increases and the price loses support at USD 18,500, the scenario could be discouraging. Then the ground would be clear for around USD 11,500.

A significant respite is highly likely to begin from the current point. It is only a matter of seeing how the market behaves before the price of Bitcoin recovers to previous levels.

By Alexander Salazar

Bitcoin Miners Started Holding again, with a More Stable Price

Jenson Nunez
-
0
Bitcoin Miners Started Holding again, with a More Stable Price

According to Coin Metrics and Glassnode, miners stopped selling their bitcoin holdings. The bitcoin price recovered at least 6% and now returns to a price registered at USD 20,600.

Bitcoin miners stopped selling their holdings and started holding again as the price returned to $20,000 after various days in the critical territory, the lowest curve of the reported decline.

According to information provided by the mining analysis entity Glassnode, revealed on Twitter by @BTC_Archive, Bitcoin miners already ceased liquidating the BTC housed, which lasted for at least three weeks.

This accumulation of BTC by miners arrived right after BTC recovered from the weekend crash that made it hit rates registered at $17,700. The first cryptocurrency was trading above USD 20,600, a rise marked at 6.81%, according to data provided by CoinMarketCap.

Less BTC Ready to Sell on Exchanges

Another Bitcoin mining analytics firm, Coin Metrics, gives credibility to Glassnode’s data. According to this entity, the money sent from miners to exchanges experienced a decline, but the BTC withdrawn from these networks in the wallets of operators faced an increasing rate.

At the close of June 18, 2022, there was a high peak, which reflects the amount of BTC that the miners of the exchange houses are taking out. In total, 173,094 BTC got withdrawn from exchanges, returning to the wallets of these operators; even though later there was a drop and only 26,121 BTC got removed.

Although it sounds bulky, it is good to point out that peaks of 119,700 BTC got approached that were ready for sale in recent days, which could also have influenced the fall in the price.

Scheduled Bitcoin Sales

The accumulation might send signs that past sales got framed within a move of the miners, who would have left part of their holdings to fight against the coming crisis.

On the other hand, there is a bit of calm in the space, operators among which the small and large ones stand out, with optimal operational machinery, are returning to holding their bitcoins. It is the usual behavior of the miners, who know that BTC can recover its value.

The assets that miners accumulate are nothing more than a good sign for the market, as it shows traces of balance, especially for a market like bitcoin, which is suffering the beats of a crypto winter that, according to analysts, has already landed.

By: Jenson Nuñez

According to Peter Schiff, Bitcoin has Been Dead Money for the Last Four and a Half Years

Jenson Nunez
-
0
According to Peter Schiff, Bitcoin has Been Dead Money for the Last Four and a Half Years

Peter Schiff compared what gold has obtained from 2017 to now and what has occurred to Bitcoin.

Peter Schiff, chief economist, market analyst, and critic of Bitcoin, takes badmouthing bitcoin as a usual activity he carries out on Twitter almost daily. This activity substitutes the critics against the procedures applied by the US administration.

 A few days ago, Schiff warned that Bitcoin would fall further this fall and that he suggested not purchasing now. On Sunday, he went to Twitter to try to convince with a speech that got quickly dismissed by various of his followers.

Peter Schiff: Gold Up 40%, Bitcoin Down 2%

Schiff, a longtime Bitcoin hater, made another prediction about BTC and expressed that it will not rise from current levels.

He told people not to get excited about #Bitcoin above $20K because 20 does not mean growth, and this price is another bull trap. Nothing falls in a straight line. This slow-motion crash shows zero signs of any capitulation that could generate a bear market bottom.

Schiff also said In December 2017 that Bitcoin fell just below $20K, becoming dead money for the last four and a half years, as its current price is at least 2% lower than it was then. By contrast, gold is up over 40% over the same period.

Although gold has reached a high price, it is also lower than its highest price, which occurred in July 2020, when gold managed to surpass at least USD 2,000.

And it is also worth saying that the current prices of gold metal are very similar to those that gold had in August 2011 and then had a profound decline to levels even below USD 1,200 in some months of 2014 and 2015. It only managed to overcome that sum when the Covid-19 pandemic reigned when it became an investment haven for many users.

Against Schiff and his Stance Against Bitcoin

One tweeter told Schiff In September 2011 that gold peaked just below $2K. Gold has been dead money for the last 11 years, as its current price is at least 6% lower than it was then. By contrast, bitcoin reached a high price registered at more than 59,300% during the same period.

Another of Schiff’s followers told him he could not take two arbitrary dates and try to prove a point with them.

Another comment on Twitter was that The Ugandan Ministry of Energy and Mineral Development stated that the nation found 31 million tons of gold. Add that to the gold supply, and the so-called 40% increase will fall due to oversupply. According to the comment, Schiff should worry a bit more about the price of gold than Bitcoin.

By: Jenson Nuñez

Bancor, Ethereum DEX, Stops the Loss Protection Procedure Citing the Market Decline

Jenson Nunez
-
0
Bancor, Ethereum DEX, Stops the Loss Protection Procedure Citing the Market Decline

The DeFi protocol suspended its temporary loss protection (ILP). Bancor highlighted the liquidation of many positions of its native BNT item and the declining market.

Bancor, an Ethereum-based decentralized exchange (DEX), suspended one of its user protection procedures due to the digital assets market decline.

In a statement on Sunday, Bancor revealed to its customers that it stopped one of its core features named Temporary Loss Protection (ILP). The decentralized finance (DeFi) platform said this is a temporary procedure to shield the protocol and its users, citing the decline of its native token BNT and the problematic market situation.

Bancor Stops its ILP Feature

Released in 2017, Bancor got described as a pioneer in DeFi, as highlighted by The Block. Its ILP feature brings shelter for a type of loss incurred when someone gives two unrelated cryptocurrencies to a liquidity pool.

When a user grants liquidity to a liquidity pool, the ratio of their deposited assets changes, which could leave investors with more of the lower value token; this event gets called a transient loss.

Bancor gives the ILP a contribution through rewards from its newly minted BNT token. Users then choose whether to hold or liquidate those tokens on the market. However, recent price volatility in the broader digital asset market appears to have put further selling pressure on BNT.

Bancor determined that the decision to suspend the ILP feature should give the protocol enough space to breathe and help BNT recover. The team also highlighted that as markets stabilize, they are working to bring the feature back to life as soon as possible.

Measures to Deal with the Crescent Decline

Bancor is not alone in making decisions to shield the network and its users amid the recent steep decline in the market. In the DeFi space, the MakerDAO (MKR) protocol, which issues the DAI stable coin, revealed that it has disabled its direct deposit module (D3M) for Aave (AAVE) as a security procedure against potentially unacceptable risks to the protocol.

Decentralized crypto lending platforms Celsius and Babel Finance revealed last week that they were freezing their withdrawals due to problems in the market. Reports suggest that Celsius is experiencing a liquidity crisis as it has been unable to meet customer withdrawals. Both firms have highlighted that they are working to reinstate withdrawals.

On the other hand, many users in the community expressed their concern regarding the move to stop the ILP. According to CoinTelegraph, Cobie, host of the podcast Uponly Tv, criticized Bancor for stopping the option when liquidity providers require it most. Investment firm Paradigm’s research contributor Hasu also spoke about this issue, expressing how the move could lead to the worst problem.

By: Jenson Nuñez

Many Bitcoiners Believe the Crypto Winter Could Last Three Years

Alexander Salazar
-
0
Many Bitcoiners Believe the Crypto Winter Could Last Three Years

Many believe the crypto winter could last from two to three years, but the Bitcoin price will recover. Bitcoiners consider that this problem does not affect Bitcoin but also the economy in general.

The price of Bitcoin (BTC) has been in the doldrums over the last few weeks, causing great concern among investors. However, that situation has also been a discussion point within the Bitcoin community.

Concerning how long this market correction will continue, user Flyingjack123 opened a discussion in the Bitcoin Talk forum. He cited layoffs at various crypto asset service platforms like Coinbase, BlokFi, Gemini, and Bitmex due to the fall of BTC.

He also spoke about the controversy of Celsius, which suspended withdrawals and exchanges for its users for a week.

Regarding the above question, many users said what they think will happen to the price of Bitcoin and what may have influenced its drop.

The Community Discusses the Future of the Price of Bitcoin

User LogitechMouse acknowledged that it is hard to predict what will happen to the price of Bitcoin. However, the bitcoiner dared to forecast its recovery could happen within around 371 days.

He advised accumulating/buying BTC at the dip, keeping in mind that most profits arise in a bearish market.

Avikz, another debate participant, considers the current problem does not only affect Bitcoin since the stock market is also falling. In that regard, he pointed out that most of his stock portfolio was in the red.

He expressed that he did not care about invented theories as cryptocurrencies are here to stay with humanity. In addition, he highlighted that he is taking advantage to acquire more Bitcoin. He stated that the crypto winter usually lasts three years, but nobody knows how long exactly.

User Tjtonmoy also believes it is hard to predict the end of this crypto winter but suggests it could take several years. However, he trusts that the price of Bitcoin will rise again and stabilize.

Like Avikz, he recommends buying Bitcoin and forgetting about coins for three years. He said investors would find themselves in a better position when they check back.

Coolcoinz, another user, thinks that the price of Bitcoin dropped due to the panic caused by the collapse of Terra. He also believes that the increase in inflation in the United States made stocks and cryptocurrencies lose value.

The different members of the community agree that the crypto winter lasts for years, but the Bitcoin price will rise. They also say this is an excellent time to acquire more BTC at the dip. Furthermore, the numbers in red do not affect only Bitcoin but also the rest of the economy.

The US Federal Reserve (Fed) announcement of a 0.75% increase in interest rates, the highest since 1994, can confirm the third point. After that, the price of BTC fell back below the all-time highs reached in the previous cycle.

Bitcoin is trading at around USD 21,404 and has accumulated a 2.9% gain over the last 24 hours. While its daily trading volume is above USD 27.41 billion, its market capitalization is about USD 409.36 billion, according to CoinGecko.

By Alexander Salazar

1...756757758...1,654Page 757 of 1,654