Summary
- Bitcoin’s gains this year have helped win confidence in its value.
- Skepticism among regulators could slow down BTC price growth.
BTC price retraced its way back up today, rising by 4% in 24 hours to trade at $53,462 at the time of writing. This was a major gain for the crypto-asset, following tumultuous two days that had seen the price fall below $50,000.
However, even with the recent gains, BTC was still 8.9% lower than its price seven days ago. However, after shading $100 billion in 24 hours two days ago, BTC looks set for a resurgence.
Confidence in BTC is largely intact
Despite widespread dismissals by global financial regulators and governments, BTC is still held in high esteem by institutions and traders. Recently, Peter Brandt, a renowned trader, stated that Bitcoin has effectively established itself among the most valuable assets globally. The veteran trader holds that BTC has the same value as gold and the United States dollar.
In the most significant announcement of the week, Elon Musk, the CEO of Tesla, announced that henceforth, the company will accept BTC as a means of payment. This information triggered a 5% spike in BTC price within 12 hours before sliding.
In another significant endorsement, Miami is looking forward to being the largest BTC hub in the United States. Recently, Miami Mayor, Francis Suarez said that his administration is aiming to make the city a hub for Bitcoin. He added that the administration wants Miami to play an instrumental role in the next biggest technological evolution.
Elsewhere, a recent report indicates that Cboe Global Markets Inc. may re-list BTC futures. Ed Tilly, the CEO, recently stated that the company still has an interest in the technology, and the rise in prices makes a strong case. The BTC futures could therefore make a return after previously being removed following the massive sell-off of 2019.
In Turkey, Bitcoin is proving to be a valuable asset against the instability of fiat currencies. Traders in the nation have embraced cryptocurrency as a means to tackle the Turkish Lira slump. Recently, the currency has caused widespread panic among investors following double-digit losses against the dollar. This situation has been triggered by the decision to fire Naci Agbal, the head of the central bank in Turkey.
Skepticism remains
Even as it makes strong market moves, skepticism remains among some stakeholders. In an interview carried out two days ago, billionaire hedge fund manager, Ray Dalio, stated that the probability of the government of the United States banning Bitcoin is high. The Bridgewater Associates manager feels that the ban could be similar to the ban on gold in the 1930s to protect fiat currencies.
In another negative outlook for BTC, the Bank of America has recently criticized it for its inappropriate energy consumption. A recent report by the bank indicates that China consumes a lot of energy in mining Bitcoin. Since the cost of electricity in China is low, the report by the bank further indicates that the mining of Bitcoin is done through the use of unsustainable fossil fuels.
Additionally, according to the report, the carbon footprint of Bitcoin is closely interrelated with its price. The more the price increases, the more energy consumption also increases.
In another fraud case involving Bitcoin, Jay Mazini, an Instagram influencer, has recently been charged with fraud. Mazini has been accused by the Department of Justice of being involved in fraud in which he scammed his followers to give him BTC in exchange for fiat currencies, and he failed to pay properly.
BTC/USD technical outlook
BTC price will find support at $51,673. The Relative Strength Index (RSI) is at 56. This will likely put the bulls in charge. The further upward movement will meet the first resistance at $54,700. However, a further push will see the price meet the second resistance at $56,231.
