In this week of August 12th, a handful of incursions have led investors to expect shock factors in Bitcoin’s price. The reports come in from CoinDesk, Crypto.News and CNBC alike.
What the investors, the data and the trends show is a potential for another breakout.
While some journalists are covering backers of a 100K Bitcoin, other reporters are taking note of the “roadblocks” still ahead for crypto and its grand daddy, BTC. Below is a better overview.
The Sudden Dips In Bitcoin’s Price …
With Russia now touting its regulatory stance on Bitcoin, you’d do yourself no favor if you overlooked what Germany and the U.S. already did with their BTC stashes. Price falls and a bear market followed those nations’ selloff, and Russia might be no different.
What the weekend spectators saw was a slow down in Bitcoin’s price before it rebounded to $60,000. That price dip could have been from Russia’s inclusion into the global-crypto market.
It surely has its own debt and active war to pay for, so cashing out makes sense.
This big news behind Russia’s headway with legal crypto is really about trade. Since Feb., 2024, global banks have kept sanctions hard atop Russia. Yet the nation is a resilient one, and, as a result, has bypassed most of its sanctions by, instead trading oil to China and India.
The other areas of global trade closed off to Russia were a matter of its currency.
Those limits, specifically, had banned the Ruble, halting Russia from doing business abroad. You can’t trade Ruble on any exchange market. Hence, global nations can’t legally track their business dealings with Russia. Crypto, like Bitcoin, is how such sanctions can be bypassed.
If a fall in BTC price happens again, consider Russia’s “politics” as capable of such force.
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The $65,000-BTC Benchmark or Hurdle?
It’s the technical data we focus on at the moment.
Bitcoin’s last test of $65,000 created a seller’s market, meaning the likelihood of sellers getting excited at that same price again. What the price history says, however, is that Bitcoin is still capable of breaking 65K—albeit with a bit of pushback before a full takeoff.
CoinDesk reports Bitcoin enthusiasts now eyeing a $100,000-strike price, but the technical sources suggest it unlikely that sellers won’t shake up the market again.
The data, the charts, they show Bitcoin still in a profit margin for 2024—as long as it stays clear of $45,000. Its recent slump hit as low as $49,000 and got the entire market buzzing.
The finer details, however, show that the $49,000 mark also saw a BIG market rejection.
Effects of Payouts and Other Collateral
The FTX exchange might not be “credible legally” but is credible as an active crypto whale with the bankroll to move the market. Not only is its bankroll right, but its pending legal trouble is forcing the exchange to expedite a selloff. It must issue a $12.7-billion payback by court order.
The agreement, though enforced by the courts, was originally brought up by lawyers representing the FTX’s founder. Sam is now unleashing the exchange’s reserves ….
The $8.7 billion to be paid for restitution goes back to account holders of the exchange. The remaining $4 billion is to cover debts. Needless to say, we know the need to expedite a big payment. That money, as covered by The Guardian, would ultimately be derivatives of Bitcoin.
Studies suggest that during FTX’s rise, its Bitcoin reserve would have been denominated by a then strike price of roughly $20,000. Those same assets in 2024 are now denominated at a strike price of $60,000. Bitcoin is not a fictitious currency anymore.
Its exchange, be it large or small, impacts a global market. The likes of roughly $10 billion in Bitcoin-backed assets leaving our market could result in huge-price shifts.
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You see what’s unfolding this week. Don’t put off the data for another day. It’s clear what crypto and blockchain are doing, and at this moment now, we’ve record numbers.
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