Future Finance, Fintech, DeFi | Daily News
              



Bitcoin Bears vs Bulls


by Ilias Louis Hatzis.



Bitcoin started the year with a bang. In the last 24 hours it went up 3%, topping $9,000. The entire week has been exciting week, with one rally after another feeding the bulls. Bitcoin has exploded by over 30% since January 1, and we’re just a couple of weeks into 2020. What a difference from what happened in January 2018. Market watchers are pointing to Bitcoin’s halving as the catalyst for the next big price push.

There are two major forces we need to consider. On one end we have the Chinese New Year, which has always been bad for cryptocurrencies. On the other, political uncertainty is providing a fertile ground for the value of cryptocurrencies. Both these forces are pulling crypto from opposite ends and will cause major price swings in the moths to come.

For some reason Chinese New Year has always been bad news for Bitcoin. This year, just like the last four years, you can expect, a little dip right before the Chinese New Year. In January 2019, Bitcoin dipped to around $3,300. In 2018, the Chinese New Year, kicked off the bear market, with a huge slide from around $16,000 to $5,000. In 2017 we had a mini dip, dropping from $1,200 to $700. Some people attribute the price drops to the Chinese cashing out and giving gifts to family and friends. Personally, think a lot of market makers take time off, and as a result potential orders don’t get filled, which causes the entire market to drop.

On the other end of the spectrum, Bitcoin’s decentralized governance combined with the global uncertainty, because of the relations between the United States and Iran, Trump impeachment and the US and China trade war are pushing people towards crypto and driving prices up. People are trying to find ways to maintain the value of their assets, avoid potential confiscation and limit effects of the possibility of the US government printing money to fund a war.

On May 13th the halving will be important, because it will directly impact the amount of Bitcoin produced per day. Today, 12.5 coins are created every 10 minutes, with a total of 1,800 Bitcoins per day and a value of around $14 million. That number will drop to 6.25 and along with that, inflation will drop. Even though halving event is not a secret, it’s part of Bitcoin’s predictable monetary policy, most of the the general public does not know exactly what the halving means, and this will create most likely create FOMO.

But beyond halving, Bitcoin’s upgrade later this year the could be another important driving force. The soft fork, which will most likely happen int the last quarter fo the year is expected to improve Bitcoin’s privacy and scalability. Schnorr signatures, Taproot schemes and Tapscript language, will bring smart contracts to Bitcoin, eliminate penalties in terms of fees for multisig wallets and improve security with Taproot.

Crypto assets, are here to stay and prices will rise. Governments, central banks and big tech is coming in. Look at China’s central bank, Libra and JP Morgan for example. But thinking that Bitcoin and crypto will go ballistic because of the halving or something else, is just wishful thinking. Volatility is the name of the game, so expect a lot of crazy swings, as bulls and bears duke it out.

Ilias Louis Hatzis
Ilias Louis Hatzis
Ilias Louis Hatzis is the Founder & CEO at Mercato Blockchain Corporation AG.
He writes the Blockchain Weekly Front Page each Monday.I have no positions or commercial relationships with the companies or people mentioned. I am not receiving compensation for this post.
Subscribe by email to join the 25,000 other Fintech leaders who read our research daily to stay ahead of the curve.
I have no positions or commercial relationships with the companies or people mentioned. I am not receiving compensation for this post.
http://dailyfintech.com


FINYEAR & CHAINEUM

Lisez gratuitement le quotidien Finyear & sa newsletter quotidienne.
Recevez chaque matin par mail la newsletter Finyear, une sélection quotidienne des meilleures infos et expertises en finance digitale, corporate finance & crypto finance.

Read for free The daily newspaper Finyear & its daily newsletter.
Receive the Finyear's newsletter every morning by email, a daily snapshot of the best news and expertise in digital finance, corporate finance & crypto finance.

------------------------

Chaineum :
Chaineum est une banque d'affaires offrant une expertise de premier plan en matière de financement, levée de fonds, M&A, ICO et STO, avec une vision stratégique orientée tant vers le métier de ses clients que vers la technologie blockchain. A ce titre, Chaineum a participé à la mise en œuvre de bonnes pratiques dans le secteur (ICO Charter, Security Token Network).

About Chaineum:
Chaineum is a Investment Banking Advisory Firm with a strong expertise in funding, fundraising, M&A, ICO and STO, and a strategic focus on both its clients' business and blockchain technology. As such, Chaineum paved the way in the implementation of certain best practices in this sector (ICO Charter, Security Token Network).

-------------------------

No Offer, Solicitation, Investment Advice, or Recommendations

This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by FINYEAR.
No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security.
Nothing on this website shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction.
Nothing contained on the website constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed on this website should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this website, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor.
This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors.
Any views expressed on this website by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change.
All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Mardi 21 Janvier 2020
Notez


Nouveau commentaire :
Twitter

Your email address will not be published. Required fields are marked *
Votre adresse de messagerie ne sera pas publiée. Les champs obligatoires sont indiqués avec *

Finyear: latest news, derniers articles