Bitcoin, which started as an alternative to fiat currency, is now becoming more valuable daily. Institutional and individual investors want a piece of the best-performing asset of this decade, so it is clear that people are interested in Bitcoin price analysis, future trends, and the most recent Bitcoin-related news.
At Prestmit, we try to figure out what’s going on with Bitcoin and give you the latest Bitcoin news so you can stay ahead of the curve.
Bitcoin May Behave Like US Treasury Bonds Amid Market Recovery – Bloomberg Intelligence Reveals
Bloomberg Intelligence’s recent crypto market research infers that Bitcoin (BTC) may start to act more like US Treasury bonds and gold than like stocks.
In its August “Crypto Outlook” report, written by senior market experts Mike McGlone and senior market structure analyst Jamie Coutts, the research focuses on a Bitcoin market comparison to gold, bonds, and oil.
The authors said that macroeconomic factors like the Federal Reserve’s monetary policies have led to similarities between the markets for Treasury bonds and Bitcoin.
“Tightening markets and plunging global growth support the Federal Reserve’s shift to a ‘meeting by meeting’ bias in July, which may help pivot Bitcoin toward a directional tilt more like US Treasury bonds than stocks.”
Also, they started that the dump-and-pump nature of assets and falling bond yields portends that Bitcoin, gold, and bonds are more likely to go up as inflation decreases.
Treasury bonds are issued by the U.S. Treasury Department and provide a fixed rate of return and interest after about 30 years.
In July, crypto markets were the most expensive compared to the 100-week moving average, according to the report. It also said it was unusual for Bitcoin to stay far below its 200-week moving average. Bitcoin just reclaimed the 200-week moving average, which is $22,827.
Analysts said that BTC was 70% lower than its high point at the beginning of August but still five times higher than its low point in March 2020, “shows its potential.”
They pointed out that the $20,000 mark is a crucial support area and said they think a base is forming, like what happened at the $5,000 level in 2018-19.
The researchers suggest that Bitcoin has been one of the best-performing assets in the last ten years.
“We think more of the same is ahead, particularly as it may be transitioning toward global collateral, with results more aligned with Treasury bonds or gold.”
Research done by Coinbase in July shows that the risk profile of crypto assets is like that of oil and tech stocks. Since the 2020 pandemic, says Coinbase’s chief economist Cesare Fracassi, “the relationship between the prices of stocks and crypto-assets has become much stronger” since the outbreak of COVID-19.
Bitcoin (BTC) Price Increases Above $24,000
The price of Bitcoin has risen above the $24,000 mark due to increased demand from individuals and institutions. In the last few days, the latest CFTC’s CME Bitcoin futures report and more than 1 million addresses buying BTC have resulted in a 5% rise in the price of Bitcoin.
Due to the lack of resistance in range and support, crypto specialists suggest that Bitcoin (BTC) will likely rise beyond $27,000.
The CFTC’s most recent CME Bitcoin futures weekly report shows a decrease in total open interest from 14,957 to 12,849. As of this writing, the long institutional position is 9740, and the short post is 10,321. Institutions’ long and short parts are equal, indicating a negative trend. At this point, it’s more likely that someone will get in.
Both institutional and individual investors alike are optimistic about Bitcoin right now. Retail investors hold 1,085 long positions and 748 short positions, compared to the 1,085 long positions and 627 temporary positions held by large investors.
As of now, Bitcoin is above the critical 200-weekly moving average of $22,000. Bitcoin price has also risen above the $22,720 to $23,390 price range, according to current data. There have been over 1 million BTC added to about 1.36 million addresses.
Since the broad range, BTC has a high possibility of moving up to $27,000.
In a tweet, cryptocurrency investor Lark Davis predicts a bullish rise as the market makes “another try to go, and stay, over the 50-day EMA.”
Bitcoin (BTC) Price Rally Above 50-MA. Source: Lark Davis
A breakout from support levels is expected, according to crypto analysts. Bitcoin and Ethereum would be the main drivers of this price increase.
As most altcoins are trading below their 50-day moving average, a rally in the crypto market may be short-lived. Bullish momentum, on the other hand, is more likely if macro and technical conditions are favourable.
Bitcoin is trading at $24,043, an increase of more than 5% in the last 24 hours. There is also a lot of interest in Ethereum (ETH) at the moment. An uptick in interest in the Merge has seen Ethereum rise by five per cent to $1831.
The bulls pushing the price of Bitcoin up to $27,000 seems most realistic at this point.
Conclusion
Bitcoin has, since its development, become a topical concept in financial activities. However, as new investors throng the crypto space, they must stay afloat with the dynamics that play out in cryptocurrency operations through its timely news.
