2023-11-03 19:34:10
An analyst expects a 27-fold increase in the price of bitcoin. And the underlying reason is simpler than we first think. The week’s most important cryptocurrency news in one place On the first day of November, the United States central bank left the central bank interest rate band unchanged, meeting analysts’ expectations. The head of the central bank, Jerome Powell, said after the committee meeting that they believe that the current level contributes adequately to the fight against inflation. However, he did not rule out further increases if necessary. In any case, according to analysts, there is not much chance of this. The decision was good for the entire financial market, but mostly for bitcoin, which was able to rise above $35,500 again after a long time. On November 2, 2023, two leading crypto exchanges, Kraken and Gate.io, experienced an unexpected shutdown, leaving users temporarily unable to access their digital assets. One of the most popular crypto exchanges, Kraken, experienced a 40-minute shutdown on Thursday, during which payments on the platform did not work. Shortly after the outage, the company announced that the bug had been fixed and all functions were working smoothly again. The outage almost coincided with Kraken’s maintenance scheduled for 9 a.m. Hungarian time, although it is not yet clear whether there is a connection between the two events. At the same time, Gate.io, the world’s eighth largest crypto exchange, experienced a much longer outage, with payouts halted for nearly six hours due to an undisclosed technical issue. FTX Founder Guilty A jury of nine women and three men found FTX founder Sam Bankman-Fried guilty of seven counts of fraud and conspiracy on Thursday in a unanimous decision in the former crypto mogul’s high-profile criminal case. It may still be some time before U.S. District Judge Lewis Kaplan determines Bankman-Fried’s sentence. The maximum penalty is 115 years in prison. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him. One lucky solo bitcoin miner mined block 814,308 using only 11 petahashes per second (PH/s) of mining power. This earned him the block reward worth 6.25 BTC, which is equivalent to more than 200,000 dollars (approx. HUF 78m) in today’s terms. He achieved this feat using Solo Ckpool, a service specifically designed for miners with lower hash rates and less efficient hardware. Is the bitcoin price starting to rise? As the odds of approval for an exchange-traded Bitcoin ETF increase by the day, six-figure BTC price predictions are becoming more common. In addition, there are less than 180 days left until the expected halving event in April 2024. We now show a few reasons why many people assume that the upward trend has already started and now it is worth jumping on the bitcoin train. 1. The bitcoin cycle again brings a self-fulfilling prophecy Exchange rate trends often show cyclical behavior. Analysts often draw parallels between the current price path and previously experienced price patterns. On the BTC/USD 1-month chart, the bitcoin halving event is marked in yellow. Bitcoin’s past bull market trends tend to follow four-year cycles. The rise is fueled by the halving event, as this is when the rate of issuance of new bitcoin coins decreases. The next halving event will be in April 2024. Until now, the upward trend typically started months earlier. And it will continue until the price of Bitcoin reaches a new all-time high. But while some believe the upcoming halving will be the most important, others argue it could be different this time around. 2. Bitcoin whales aren’t the only ones hoarding anymore Bitcoin whales, i.e. entities with at least 1,000 BTC, are showing signs of hoarding. In the past, this has always preceded large exchange rate booms. Glassnode’s data shows the phenomenon well in the Bitcoin Accumulation Trend Score – which shows the level of accumulation over time on a graph. The indicator on the chart is currently above 1, indicating that the larger whale-type entities that make up most of the network as a whole are piling up. In addition, smaller entities have also set accumulation records so far. And they set new peaks one after the other in 2023. 3. Bitcoin ETF Approval Increasingly Likely The debate surrounding Bitcoin ETFs in the United States has gained momentum. Bloomberg ETF analysts have already increased the probability of approval of the Bitcoin ETF to 65%. If the product is approved, such an ETF could attract even more institutional investors to the space. And this can have a positive effect on the cryptocurrency exchange rate in the long run. 4. Elevated crypto market sentiment The Fear & Greed index of the crypto sector is a barometer of the prevailing investor sentiment. In the past few weeks, the indicator stands at a remarkable value of over 70 points, which indicates the prevailing “greed” in the market. In the past, this shift in market sentiment was a precursor to price increases. Currently, the indicator has not been at such a high level since November 2021, when Bitcoin reached an all-time high of $69,000. 27x higher bitcoin exchange rate coming? BitMEX co-founder Arthur Hayes has confirmed again that we will soon see seven-digit rates on the bitcoin chart. According to Hayes, a monetary policy tool known as yield curve control (YCC) will act as a catalyst for Bitcoin to reach $1 million. Compared to the current exchange rate, this means an increase of more than 2700%. Central banks use yield curve regulation to influence long-term interest rates. To this end, they buy long-term bonds as much as possible to prevent the interest rate from rising above the intended target. According to Hayes, the entire US government is enabling a loose monetary policy environment, even as the Federal Reserve now appears to be tightening. The founder of BitMEX first predicted a seven-digit Bitcoin price in an essay earlier this year in March. At the time, he argued that China’s easing of monetary policy would lead to Bitcoin hitting $1 million. Hayes now also says that the Federal Reserve’s mid-week decision to hold off on raising interest rates suggests it’s time to pump up financial assets again. According to the BitMEX founder, the Fed’s decision will prompt other central banks around the world to ease monetary policy. The higher and higher bitcoin price predictions are coming one after the other. If Hayes’ theory is confirmed, the $1 million bitcoin price could come in a few years. He is not alone in his theory – that the bitcoin price is about to rise significantly. Bitcoin maximalist and Orange Pill podcast host Max Keizer shared his optimistic view on X social media on why he still expects BTC to reach the $220,000 level soon. This time, he referenced a tweet from financial blog and news aggregator Zerohedge when he shared his bitcoin price prediction. The quoted X post claims that the US is looking to borrow $1.5 trillion this quarter and next, after borrowing a staggering $1 trillion last quarter. And the rapid growth of the US debt has clearly convinced Keizer that the cryptocurrency will rise in price radically. The increase in the circulating money supply is considered to be one of the main catalysts for the increase in the price of Bitcoin. In the last three years, since the pandemic hit the world in 2020, this has certainly been the case. At that time, the United States government began issuing so-called “covid checks” in the amount of $1,200 to support Americans confined to their homes due to the quarantine. The governments of many other countries followed suit, pouring incredible liquidity into the market. In total, in 2020 alone, the US government printed more than 6 trillion dollars in the form of support programs, bailouts for banks and businesses. This excessive amount of money has entered the economy, causing significant inflation in recent years. And only money independent of governments can provide a real lifeline against this. As is bitcoin.
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