A new surge of course BTC/USD means that the bears are tired to swallow the dust behind, after the fall of bitcoin, which was observed on the weekend reset.
August 5, bitcoin (BTC) passed the key level of technical resistance – $11 500 $11 600. At the time of writing the article, the cryptocurrency is at $11 659, with an increase of 3.93%, writes Cointelegraph.
Bitcoin price in August 5. Source: CoinMarketCap
The excitement remains palpable for Bitcoin, which is the current week corrected losses after a big drop from the highs this year of $12,000 to $1200.
The fed can create the “wildly bullish” environment for safe storage
Bitcoin could rise higher if the US Federal reserve tends to raise inflation. In his speech last week, fed Chairman Jerome Powell (Jerome Powell) said that the results of the annual review, which will dictate future policy, to appear next month.
This means that the Federal reserve is lowering interest rates for a year to get inflation to 2%. Annual inflation in June was 0.6%.
The President of Yardeni Research, Edward Yarden (Edward Yardeni) reported that the inflation target of 2% will lead to the fact that “real returns will decline steadily, the dollar lower volatility, lower credit spreads lower, and stocks higher.”
It would be “wildly bullish” for gold and silver, he added.
Recently bitcoin has copied a record increase in reliable repositories. Statistics show a surge of interest and investment in cryptocurrency over the past few months.
Another analyst warned that the transition to higher inflation will cause more pain for the average consumer.
“It makes no economic sense,” said Peter Boccara (Peter Boockvar), chief investment officer of the Bleakley Advisory group.
The trend of VIX means that bitcoin is “extremely bullish”
Summing up the plans of gábor Gurbax (Gabor Gurbacs), Manager-investment strategist VanEck, painted a gloomy future for the US dollar and those who holds it.
“Two variants of Fiat money is to spend it quickly before it gets any bigger or spread on speculative markets, artificially supported by Central banks printing money”
– he wrote in Twitter.
Meanwhile, another indicator of potential future growth for bitcoin came in the form of his relationship to VIX this week.
Analyst “Brave New Coin” Josh Olszewicz (Josh Olszewicz) stated that the decrease in the level of VIX is typically the growth rate for BTC/USD, the downtrend lasts for several months.
“Historically very bullish for BTC,” he wrote.
Fluctuations in the VIX. Source: Josh Olszewicz/Twitter
VIX is derived from activity in the S&P 500, the stock market, which bitcoin has historically demonstrated a correlation to 95%.
On the website CoiNews we wrote that the market capitalization of Bitcoin (BTC) ahead of some major companies such as Intel and Coca-Cola.
The portal CoiNews informed that the bears did not expect the latest increase in the price of bitcoin over $11 000. An increase of 52% of the total open interest in futures in July indicates that the sellers or overly confident.
Telegram subscribe to our channel!
Follow us on Facebook!