Let’s let the chart do the talking for the past 3 months where it currently sits at $9327.65
Back in February BTC posted the maximum high for the past 3 months of just over 11K. As you can see from March to April the lowest moves of the recent past were posted around the 7K mark. To me this looks like a classic sideways trading that eventually breaks out. You can see since April there has been a steady upward trend.
BTC hasn’t been able to defend the 10K mark but I do believe we have stability around the 9K mark. Some indicators claim BTC is currently neither overbought or oversold. But common sense has to tell you that if the price is going down it appears we have more sellers than buyers at the $10K mark. It could be people cashing out for fear of wondering when does BTC return back to the 20K mark?
Many people have said this spells disaster but I really do think we are just getting started with the BTC rally and I think much higher prices are around the corner in the near future. There has been a lot of positive news from around the world that seems to be increasingly towards accepting that BTC is here to stay.
Perhaps some regulators thought twice and realized that “like it or not BTC is too big and risky to ban”. Because people can move BTC at will and it cannot be frozen or truly banned. I think regulators are finding just as the case is with exchanges, if you put undue pressure on owners of cryptocurrency they will simply just move away to a friendlier jurisdiction. I would imagine they should favor BTC as it is not anonymous and is easily and fully trackable. If people switched to more private based coins they’ll have little chance at regulation such as with Monero.
The new chief of the San Francisco branch, of the privately held, Federal Reserve Bank has stated that Bitcoin cannot, and will not ever replace the US Dollar. First of all, they are doing a fantastic job and understand their market and duties. They cannot step into this job and say anything else and expect to keep it.
I get it, Bitcoin is printed without supposed backing, although it is backed by a lot of physical hardware assets and electricity. Fiat currency, especially the US Dollar is printed and floated without any controls or restrictions. Well, actually, the only control and restriction is that there is none. The Federal Reserve prints at will and on demand, without limitation or backing of any sort, and they have long abandoned the gold standard.
The fact that the Federal Reserve would comment at all on this matter and mention Bitcoin, to me, is very telling that it is very much a possibility. When you have this much money put into something that is being traded worldwide, every second, and such an ecosystem I think it is an excellent contender to the US Dollar and fiat currency in general. Remember, fiat is backed by nothing as well and printed without any limit. Most cryptocurrencies actually are limited in how many coins can be mined or minted at any rate.
Cryptocurrency is currently at a $421 Billion USD market cap and I think it won’t be long before it is in the trillion dollar range. This is ultimately the worst nightmare for any central banker with so many competitors, of course your number one priority should be outlawing them and shutting them down.
On that end the Fed is right to do it and is doing their job well. However, for people who don’t essentially control the fiat financial system, we would do well to root for cryptocurrency as an alternative system. I think both systems can survive and work together, but if fiat pushes it too much, I think there may be a digital currency revolution that far surpassed the digital rights movement of the late 90s and early 2000s that caught the RIAA and MPAA by surprise.