Current BTC Landscape—a Calm Before the Storm
Bitcoin is the oldest cryptocurrency and the first successful implementation of a blockchain. The asset has picked up insane popularity over the past few years but has now seemed to enter a dormant period. Even with so many progressions surrounding BTC recently, the price has remained in the mid to low 30k range.
BTC is Slow But Steady
Over the past month, BTC price has stayed steady between 30k and 40k, most recently settling around $33,000. Just yesterday, the price broke down through the $32,600 support, which has held steadfast to multiple tests over the past month. After sitting at 31k for about a day, the price is now back up to nearly 33k, showcasing the continued demand for the digital asset. After today’s price jump, the outlook is positive, especially with the heavy 30k support looking as strong as ever.
As inflation increases the fastest it has in 13 years, BTC is an attractive asset for investors to hedge against inflation. In a recent interview, famous investor Bill Miller explained his thoughts surrounding BTC’s use case in the current economic environment. Miller explained,
“Bitcoin was born out of the 2008 crisis and was designed to be free of government control and manipulation, to be the ultimate in an inflation-proof asset.”
Yesterday, SkyBridge Capital’s CIO Troy Gayeski went into detail on his reasoning behind why BTC and ETH will someday become the preferred store of value. Gayeski spoke about the importance of digital assets in their portfolio, as well as the continued institutional adoption. Overall, his outlook for the Bitcoin market was very positive, citing the on-chain data showing that investors are mostly holding their coins.
Upcoming benefits for BTC
The Great Migration of BTC miners from China led to a 55% decrease in hash rate from May to June. This induced many doubts from crypto investors, pushing the price into the lower 30k range. Now, on-chain data is showing that the hash rate is on the come up, now only down 39% since its heights in May. BTC price has not yet shown any major movement on this news, but is great for near-term BTC valuation.
Additionally, Grayscale has recently teamed up with BNY Mellon to work on a Bitcoin ETF. While regulators are still working on a framework surrounding Bitcoin ETFs, government acceptance is highly anticipated.
A Bitcoin ETF will make the non-traditional asset widely available to traditional investors. This development in digital asset investing is extremely exciting, giving BTC another growth factor right around the corner—especially since one of Grayscale’s funds is now an SEC-reporting enterprise.
Bitcoin is down nearly 50% since its height in mid-May. Now, many large institutional investors are eyeing this as an opportunity to buy-in. A large group of hedge funds is currently researching entering the crypto market, while there is another group claiming they plan to invest in crypto within the next five years.
As of about a month ago, venture capital funds had put $17 billion into crypto in 2021. With so much money pouring into crypto, market leader BTC is seeing a positive outlook.
All things considered, Bitcoin is on very steady ground surrounded by optimism. Although BTC’s recovery hasn’t been seen in its price yet, it is seen in the surrounding bullish context.
Bitcoin continues to be in a slump but positive news is continuously being released. These developments are adding fuel to Bitcoin’s growth; now all it needs is a spark. When do you think the BTC slump will end? Is crypto in for a big move soon? Let us know in the comments.