From China FUD to US Infrastructure Bill FUD – 5 Things to Consider With Bitcoin This Week

Bitcoin starts a new week as China reaffirms its anti-crypto stance, but the next FUD story comes from the US.

The US infrastructure law is under discussion, will be finalized on September 30th and could shake up crypto companies if passed.

This means that the fundamentals and the on-chain metrics are as optimistic as ever and retailers are betting – in the worst case – on a fair price of no less than 36,000 US dollars.

What is the opportunity? Here are five things that could change the market this week.

Infrastructure bill

The macro narrative shifts from China to the United States this week as lawmakers decide the fate of the “Infrastructure Bill”.

HR3684, which was recently passed by the Senate, will come to the final vote on Thursday after a four-day debate, the Senate announced. Bitcoin magazine.

The bill contains a controversial description of “broker,” a term that could have far-reaching implications for crypto companies in the United States. However, there are still efforts to change the wording of the bill, spearheaded by Wyoming Senator Cynthia Lummis and supporter Caitlin Long.

The bill currently describes a broker as “any person (contemplated) regularly responsible for the provision of services involving the transfer of digital assets on behalf of an individual”.

As of September 27, the bill had received 539 various changes.

Despite the potential to become a thorn in the side of the local crypto industry, HR3684 is arguably unimportant to seasoned Bitcoin holders.

However, due to the recent “ban” in China, market sentiment is very sensitive to all “FUD” stories from everywhere.

“Bitcoin is bipartisan. Digital assets are apolitical, ”Senator Lummis summary on Twitter before election day.

Looking forward to the “green week”

As usual, Bitcoin price action has picked up on the spot market earlier this week, with BTC currently trading around $ 44,000 with a gain of nearly 2%.

The price is currently facing resistance that rejected it last week after briefly breaching $ 45,000.

So far, this breakout attempt hasn’t made much of a difference to a $ 44,000 unholding at press time.

However, contrary to the forecast for a return to the mid-$ 30,000 range on Sunday, sentiment has shifted.

“I’m looking forward to a green week for Bitcoin,” Michaël van de Poppe summary End of sunday.

Bitcoin price chart row border | Source: TradingView

The weekly close, which has been a source of controversy for the past few days, did not disappoint, hitting $ 43,144 – well above the bare minimum that some traders have marked.

Analyst Rekt Capital has inquiry the price closed at $ 43,600 but failed.

“Bitcoin continues to be constrained by the 111-day MA support of the Pi cycle and this immediate red resistance,” says Rekt Capital Say more in other comments.

“The narrow range actually forms a clear market structure, perhaps an early ascending triangle.”

Bitcoin price scenario | Source: Rekt Capital / Twitter

Lightning Network outperforms fundamental growth

Bitcoin network fundamentals are pretty healthy this week, with mining troubles likely to correct.

After the fifth straight win last week, the data shows that Bitcoin will correct to an increased level of difficulty in eight days, marking the first six straight wins since mid-2019.

Not just the difficulty, the hashrate is currently around 145 exahashes per second (EH / s) and only 23 EH / s away from ATH.

The statistics testify to the miners’ beliefs and the extent of their comeback since the mass exodus four months ago after China’s raid on the mining industry.

On the consumer side, the story is equally impressive. The Lightning Network, which just recently emerged from its successful adoption history in El Salvador, is reaching a capacity of nearly 3,000 BTC. This capacity has almost tripled since the beginning of 2021.

“Lightning Network public capacity just broke the 2,900 BTC mark. More than 400 BTC have been added in the last 10 days, ”investor Kevin Rooke Comment.

Bitcoin Lightning Network Capacity vs. Bitcoin Price Chart | Source: LookIntoBitcoin

Lightning sets up a “Layer 2” protocol that processes BTC off-chain transactions instantly and almost free of charge.

Last week, Twitter became the first major partner of the Strike payment gateway and implemented the Lightning Network.

Feel scared?

Cryptocurrency market investors are sure to stay cool, and the sentiment indicator of the Crypto Fear & Greed Index shows their level of fear.

Late last week, the index fell to its lowest level since mid-July – before Bitcoin started falling towards $ 53,000.

This time it’s $ 40,000, not $ 30,000, which is the point of the game.

On Monday the index was slightly higher at 27/100, still in the “fear” zone.

Crypto Fear & Greed Index Chart | Source: alternative.me

For institutional investors, negative funding rates are creating cautious optimism about sustained upside potential.

As analysts often point out, when everyone is sloping down would be the ideal time to go on BTC and beat the majority of speculators.

“Never give up…”

These words and other excerpts from the song of the same name by British singer Rick Astley from 1987 have become a meme for bitcoiners.

They describe the mindset and investment habits of owners who never sell BTC, regardless of the circumstances.

Weathering any storm is an incentive for long-time market participants, but right now investor “Rick Astley” may even be pointing the way to new all-time highs.

Investment phases “Rick Astley” vs. Bitcoin price | Source: Willy Woo / Twitter

As analyst Willy Woo noted, “Rick Astley” was having a tough time and historically the good times have come.

The effects can occur sooner than many people imagine. Before the $ 2,000 rally on Sunday, Van de Poppe called the start of the Bitcoin and Altcoin party.

https://twitter.com/CryptoMichNL/status/1442060633009180672?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“Let’s join the party again. Bitcoin ricocheted off beautifully. “

In general, hardcore investors have taken control of part of the BTC supply, which this month reached its highest level since October 2020.

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According to Cointelegraph

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